HomeMy WebLinkAbout08-08-16 Community InvestmentOFFICE OF THE CITY CLERK
KAREEMAH FOWLER, CITY CLERK
COMMUNITY INVESTMENT AUGUST 8, 2016 3:45 P.M.
Committee Members Present: Gavin Ferlic, Regina Williams- Preston, Oliver Davis, Randy
Kelly, Paul Tipps
Committee Members Absent: William Smith
Other Council Present: Dr. David Varner, John Voorde, Jo M. Broden, Karen White
Others Present: Jennifer Coffman, Kathleen Cekanski- Farrand, Adriana
Rodriguez
Agenda: Bill No. 16 -59- Reconfirming Real Property Tax Abatement for Somaschini
Bill No. 16 -61- Five -year (5) Personal Property Tax Abatement for AM General
Committee Chair Gavin Ferlic called the meeting to order at 3:45 p.m. with two (2) items on the
agenda.
Bill No. 16 -59- Reconfirming Real Property Tax Abatement for Somaschini
Committee Chair Ferlic requested a motion to hear the substitute version of Bill No. 16 -59. So
moved by Committeemember Oliver Davis, and seconded by Committeemember Regina
Williams- Preston. It carried by a voice vote of four (4) ayes.
Paul Morrison, Operations Manager at Somaschini America, The property tax abatement was
requested in May of 2012 by SBG Realty LLC, which sold the building in October of 2015.
Somaschini maintains manufacturing operations at that location today. Somaschini then filed a
new form, three- hundred and twenty -two (322), requesting a transfer of this property from SBG
Realty LLC to Somaschini.
Sarah Heintzelman, Department of Community Investment on the 14th Floor of the County City
Building, Somaschini has been continuing to grow and they are currently in full compliance with
all of the abatements for this project.
455 County-City Building • 227 W. Jefferson Boulevard - South Bend, Indiana 46601
Phone 574- 235 -9221 - Fax 574- 235 -9173 • TDD 574 - 235 -5567 • www.SouthBendIN.gov
JENNIFER M. COFFMAN ALKEYNA M. ALDRIDGE EMILY SEXTON
CHIEF DEPUTY/ CHIEF OF STAFF DEPUTY/ DIRECTOR OF POLICY ORDINANCE VIOLATION CLERK
Council Attorney Kathy Cekanski- Farrand explained that this is the process of reconfirming that
has been done in the past when there has been a transfer. Councilmember Dr. Varner stated that
this transfers the balance of the existing abatement; it doesn't extend it or change it in any way.
Committeemember Davis motioned to bring Bill No. 16 -59 to the full Council with a favorable
report, Committeemember Davis seconded and it carried by a voice vote of five (5) ayes.
Bill No. 16 -61- Five -year (5) Personal Property Tax Abatement for AM General
Sarah Heintzelman, Department of Community Investment on the 14th Floor of the County City
Building, AM General is moving from Mishawaka to South Bend, with a total investment of $3.2
million. For the personal property aspect of it, it is going to be $1.1 million worth of investment
in equipment. Of that there is going to be $94,366 in taxes generated. We are asking for an
abatement of 43,483 over the course of a five (5) year period. This relocation is going to bring
one - hundred and twenty -three (123) new permanent full -time jobs, with an estimated annual
payroll of over $9 million.
Eric Swift, Budget Manager for the AM General move, was present to answer any questions the
Council may have.
Councilmember Karen White asked if the new jobs would be transfers or brand new positions,
and Ms. Heintzelman clarified that any time jobs come in to South Bend, they are considered
new.
Committeemember Paul Tipps asked if the statement that AM General LLC had no other
abatements, personal or real, includes when the company was on Chippewa Avenue.
Ms. Heintzelman stated that to the best of her knowledge, yes. There are no active abatements
for AM General at this time.
Committeemember Oliver Davis asked if there are currently any new employees planned, or if
all of the one - hundred and twenty -three (123) employees will be transferred.
Mr. Swift stated that they will all be transferred; they are existing employees, they are just being
moved to the new location.
Committeemember Randy Kelly moved to send Bill 16 -61 to the full Council favorably, it was
seconded by Committeemember Williams- Preston, and it carried by a voice vote of five (5) ayes.
With no other business before the Committee, Committee Chair Gavin Ferlic adjourned the
meeting at 3:50 p.m.
Respectfully Submitted,
Gavin Ferlic, Committee Chair
NJ