01-24-2022 Agenda Packet - Laserfiche WebLink

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TAX ABATEMENT REPORT TO: South Bend Common Council FROM: Angelina Billo, Director of Business Development SUBJECT: REAL & PERSONAL PROPERTY TAX ABATEMENT PETITION FOR: JEM Farms South Bend, LLC DATE: January 19, 2022 On Tuesday, January 4, 2022, a petition from JEM Farms South Bend, LLC was received and subsequently filed with the City Clerk for real and personal property tax abatements consideration for property located at the intersection of Calvert Street and Renewable Drive, South Bend, IN 46613. Pursuant to Chapter 2, Article 6, Section 2-84.2 of the Municipal Code of the City of South Bend, this petition was referred to the Department of Community Investment for purposes of investigation and preparation of a report determining whether the area qualifies as an Economic Revitalization Area pursuant to I.C.6-1.1-12.1 and whether all zoning requirements have been met. The Department of Community Investment has reviewed the petition (a copy of which is attached), investigated the area, and makes the following report. PROJECT SUMMARY  Red Sun Farms is the largest fully integrated high tech greenhouse company in North America, and grows tomatoes, peppers, cucumbers, and berries. Red Sun owns more than 476 acres of greenhouses in Mexico, 211acres of greenhouses in Canada and approximately 40 acres in Virginia. Red Sun Farms sells to Kroger, Walmart, Wegmans, Martins and many more.  Red Sun Farms proposes to develop an initial 25 to 50 acres of greenhouse for tomatoes and strawberries in South Bend, if all of the other elements are in place. Those elements being utilities, tax assessments, abatements, and other incentives.  The vine crop and strawberry greenhouse would be a capital investment of $35-40 million for each 25-acre development and employ 120+/- people per 25 acres. As such, a 100-acre development will provide $140 million to $160 million capital investment.  Strawberry production will be 315,000 pounds per 25 acres of greenhouse development, with tomatoes producing 17.5 million pounds for each 25-acre development. The plan for Red Sun Farms is to develop 100 acres of greenhouses.  JEM Farms South Bend LLC proposes to invest approximately $60m in new production facilities and $118m in new logistical distribution equipment including but not limited to conveyors, scanning and moving equipment, packaging equipment, sorting and picking equipment at the site.