2 Minutes 5/15/14 Meeting - Laserfiche WebLink

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South Bend Redevelopment Commission Regular Meeting —May 15, 2014 6. NEW BUSINESS (CONT.) B. Airport Economic Development Area (4) continued... Corporation in an effort to expand its global reach through expansion into the U.S. with their first facility being here in South Bend. The company is a leading German producer of technical hoses, hose systems and system accessories. They currently do not have a manufacturing presence in the United States; however, they desire to expand here. The company plans to establish a production facility and central warehouse to service the North American market. This will help strengthen the company's overall market position. The initial investment plan calls for $2 million to be invested over the first five years.. The company plans to hire between 20 and 40 jobs in the South Bend community, ranging from managerial, engineering, skilled labor and clerical, with hourly wages ranging from $24 to $30 per hour. Norress has submitted a Petition for Incentives through 2018, pledging to create and retain approximately 26 new jobs and to make the $2 million investment. The owners of Norress have identified a site west of the airport that they are hoping to purchase to house both its production and North American headquarters. Staff is requesting permission to move forward with preparation of a development agreement committing $200,000 of AEDA TIF funding to purchase equipment to be leased back for a nominal fee after disposition procedures are completed. Upon proof of satisfying total investment and job creation projections, the Commission shall sell the equipment to the company for the sum of $1. It is anticipated that standard claw -back provisions will be built into the development agreement that would require payment penalties in the event either commitment should fall short of promises. Mr. Vamer asked whether the lease payment recaptures the entire investment. Mr. Fielding responded that it does not, but we know that the capital investments they will make will provide property taxes that cover our cost after about seven years. Upon a motion by Mr. Varner, seconded by Mr. Inks and unanimously carried the Commission approved the terms outlined for the Norress project and authorized staff to prepare a development agreement based on the terms outlined. Mr. Fielding also reported that staff and the IEDC have been working with executives from the Nello Corporation for approximately ten months in an effort to consolidate its operations from Texas to South Bend. Nello Corporation is a global leader in the design and fabrication of galvanized steel towers, guyed towers, and monopoles as well as tapered utility pole and transmission pole structures. Founded in 2002 by a team of experienced engineering, design, and manufacturing professionals, Nello has grown to one of the larger infrastructure providers in North America. The executives at Nello have submitted a