04-22-19 Council Minutes - Laserfiche WebLink

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REGULAR MEETING April 22, 2019 There were no bills for third (3rd) reading. RESOLUTIONS BILL NO. 19-23 A RESOLUTION CONFIRMING THE ADOPTION OF A DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 4373 AMERITECH DRIVE, SOUTH BEND, IN 46628 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A SEVEN (7)YEAR REAL PROPERTY TAX ABATEMENT FOR HOPKINS PROPERTIES OF SOUTH BEND, LLC Dan Buckenmeyer, Director of Business Development for the Department of Community Investment with offices located on the 14th floor of the County-City Building, South Bend, IN, served as the presenter for this bill. Mr. Buckenmeyer stated, Good evening, Council Members. Just really quickly,looking at the two(2)we have,we have two(2)phase-ins for pieces of property that are currently contributing just over $7,000 per year to the tax rolls. At the end of these investments, these properties will contribute over $700,000 per year to the tax rolls, by our estimates. So, one hundred(100) times over improvement of the investment and tax rolls. As was noted, we are going to start with Hopkins Properties, also known as Truck Centers International. They are headquartered near St. Louis, but they are a current resident in South Bend over on Sample Street. This will consolidate and grow their operations. They currently have about forty- two (42)jobs which will be retained but by moving to this new location, right on the corner of the bypass and the tollway, and this roughly 100,000 square foot facility, they will add another thirty (30)jobs at least to South Bend's community. They are good paying jobs. They are mostly diesel technicians and those sorts of jobs. It is over a$17.8 million private investment. We are providing them with a seven (7) year tax abatement, phasing in their tax expense over time. Rich Deal, from Barnes & Thornburg with offices located at 100 North Michigan Street, South Bend, IN, served as a petitioner for this bill. Mr. Deal stated, I'm pleased to join Tyler Yates, the Vice President of Truck Centers to request your favorable consideration and hopeful support tonight. I want to thank Dan and the Department of Community Investment for laying out the background of this project for you. As Dan noted, this is a significant investment of over $18 million to facilitate a relocation and expansion for Truck Centers. It's going to enable them to increase employment by at least thirty. Projects are probably a little bit higher than that, but it would allow them to better serve their customers, which is all truck distribution in this part of the State. We appreciate your consideration and welcome any questions you might have. Councilmember Regina Williams-Preston stated, There was some community benefit we discussed, and I would just like that to be reiterated for the record. The work that you're doing with the job training, the wages and the legacy you have with your employees. Mr. Deal replied, It has been an honor for me to work with and represent Truck Centers. It is in its third(3rd)generation of ownership. Currently,Truck Centers throughout the Midwest is over seven hundred and twenty (720) employees strong. The longevity and commitment of employees is by far above average when it comes to the length of service. People have wanted to stay with and serve Truck Centers. That is because Truck Centers treats its employees with the utmost respect, they invest in their training and their future as well as offer very competitive compensation. This opportunity for Truck Centers new facility here is one (1) in which they can also emulate something they have done in Troy, Michigan, which is to have their own in-house training center. They can bring in and invite graduates from high school and other vocational schools, veterans and others, who may want to get into the diesel tech business and they can facilitate that opportunity through training onsite. That is very significant for this type of equipment for the manufacturers represented by Truck Centers. 2