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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 /> Corporation in an effort to expand its global reach through expansion into the U.S. with their <br /> first facility being here in South Bend. The company is a leading German producer of <br /> technical hoses,hose systems and system accessories. They currently do not have a <br /> manufacturing presence in the United States;however,they desire to expand here. The <br /> company plans to establish a production facility and central warehouse to service the North <br /> American market. This will help strengthen the company's overall market position. <br /> The initial investment plan calls for$2 million to be invested over the first five years.. The <br /> company plans to hire between 20 and 40 jobs in the South Bend community,ranging from <br /> managerial, engineering, skilled labor and clerical, with hourly wages ranging from$24 to <br /> $30 per hour. <br /> Norress has submitted a Petition for Incentives through 2018,pledging to create and retain <br /> approximately 26 new jobs and to make the$2 million investment. The owners of Norress <br /> have identified a site north of the airport that they are hoping to purchase to house both its <br /> production and North American headquarters. <br /> Staff is requesting permission to move forward with preparation of a development <br /> agreement committing$200,000 of AEDA TIF funding to purchase equipment to be leased <br /> back for a nominal fee after disposition procedures are completed. Upon proof of satisfying <br /> total investment and job creation projections,the Commission shall 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. Varner asked whether the lease payment recaptures the entire investment. Mr. Fielding <br /> responded that it does not,but we know that the capital investments they will make will <br /> provide property taxes that cover our cost after about seven years. <br /> Upon a motion by Mr. Varner, seconded by Mr. Inks and unanimously carried the <br /> Commission approved the terms outlined for the Norress project and authorized staff to <br /> prepare a development agreement based on the terms outlined. <br /> Mr. Fielding also reported that staff and the IEDC have been working with executives from <br /> the Nello Corporation for approximately ten months in an effort to consolidate its operations <br /> from Texas to South Bend. Nello Corporation is a global leader in the design and <br /> fabrication of galvanized steel towers, guyed towers, and monopoles as well as tapered <br /> utility pole and transmission pole structures. Founded in 2002 by a team of experienced <br /> engineering, design, and manufacturing professionals,Nello has grown to one of the larger <br /> infrastructure providers in North America. The executives at Nello have submitted a <br /> 5 <br />