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South Bend Redevelopment Commission <br /> Regular Meeting—May 15, 2014 <br /> 6. NEW BUSINESS (CONT.) <br /> B. Airport Economic Development Area <br /> (4) continued... <br /> Petition for Incentives to the City of South Bend and we have successfully negotiated a <br /> public investment of$9,000,000 into equipment and/or machinery to be leased back for a <br /> period of ten years. <br /> Nello's Petition for Incentives pledges to create and retain approximately 600 jobs with <br /> hourly wages averaging$16/hr. The owners of Nello have identified a site north of the <br /> Ethanol Plant where they plan to construct and operationalize an initial 250,000 square foot <br /> facility with plans to double in size after year 5. They are currently completing soil borings <br /> and ground testing to ensure the viability of the preferred site. <br /> Staff requests permission to move forward with the preparation of a development agreement <br /> committing$9,000,000 of AEDA TIF funding to purchase equipment to be leased back for a <br /> nominal fee after disposition procedures are completed. Upon proof of satisfying total <br /> investment and job creation projections,the Commission will sell the equipment to the <br /> company for the sum of$1. It is anticipated that standard claw-back provisions will be built <br /> into the development agreement that would require payment penalties in the event either <br /> commitment should fall short of promises. <br /> Mr. Fielding noted that the Commission will not be offering tax abatement to this project, <br /> due to the large amount of TIF funds being provided for equipment. <br /> Mr. Varner asked the amount of investment Nello will be making in the project. Mr. <br /> Fielding responded that they will be making a$60,000,000 investment, looking to construct <br /> their initial 200,000-300,000 sft facility this year with plans to expand with an additional <br /> 200,000-300,000 sft within five years. <br /> Upon a motion by Mr. Varner, seconded by Mr. Downes and unanimously carried, the <br /> Commission approved the terms outlined for the Nello project and authorized staff to <br /> prepare a development agreement based on the terms outlined. <br /> C. West Washington-Chapin Development Area <br /> There was no business in the West Washington-Chapin Development Area. <br /> D. South Side Development Area <br /> (1) Resolution No.3214 approving and authorizing the execution of an amendment to the <br /> Addendum to the Master Agency Agreement with the Board of Public Works <br /> (Southside Improvements Project) <br /> 6 <br />