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... Petition for Incentives to the City of South Bend and we have successfully negotiated a public investment of $9,000,000 into equipment and/or machinery to be leased back for a period of ten years. Nello's Petition for Incentives pledges to create and retain approximately 600 jobs with hourly wages averaging $16/hr. The owners of Nello have identified a site north of the Ethanol Plant where they plan to construct and operationalize an initial 250,000 square foot facility with plans to double in size after year 5. They are currently completing soil borings and ground testing to ensure the viability of the preferred site. Staff requests permission to move forward with the preparation of a development agreement committing $9,000,000 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 will 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. Fielding noted that the Commission will not be offering tax abatement to this project, due to the large amount of TIF funds being provided for equipment. Mr. Varner asked the amount of investment Nello will be making in the project. Mr. Fielding responded that they will be making a $60,000,000, looking to construct their initial 200,000 - 300,000 sft facility this year with plans to expand with an additional 200,000- 300,000 sft within five years. Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the Commission approved the terms outlined for the Nello project and authorized staff to prepare a development agreement based on the terms outlined. C. West Washington - Chapin Development Area D. South Side Development Area (1) Resolution No. 3214 approving and authorizing the execution of an amendment to the Addendum to the Master Agency Agreement with the Board of Public Works (Southside Improvements Project) Resolution No. 3214 approves an Agency Agreement Amendment setting the budget for right of way acquisition and construction for the Bowen Ave. and Ireland & Miami 0