HomeMy WebLinkAbout02-14-2011 3 business expansions to create as many as 52 new jobs
Office of the Mayor
NEWS RELEASE
February 14, 2011
Noon
3 business expansions to create as many as 52 new jobs
Contact:
Mikki Dobski, Director of Communications & Special Projects, 235-5855 or 876-1564
or Don Inks, Director of Economic Development, 235-9371
Three South Bend businesses are expanding, creating as many as 52 new jobs and
infusing nearly $31.4 million of new investment into the city’s economy, according to
resolutions under consideration Monday by the South Bend Common Council.
The Common Council will consider granting tax phase-ins to three companies that are
adding new equipment and/or constructing new facilities in South Bend’s Airport
Economic Development Area on the city’s west side. All three phase-ins received
unanimous approval Feb. 8 from the South Bend Redevelopment Commission.
“These new investments highlight that most job growth comes from the expansion of
existing businesses in our community,” said Mayor Stephen J. Luecke. “The City of
South Bend is an active and responsive partner with local businesses through our
Business Growth Initiative, co-sponsored by the Chamber of Commerce. We work hard
to resolve issues that could hamper growth so the private sector can do what it does best:
create jobs and expand our local economy.”
Three companies are choosing to expand operations in South Bend:
?
ABC Supply Co. Inc., a distributor of exterior housing products, is planning to move
into the Oliver Industrial Park, where Oliver Plow Partners is purchasing 4.4 acres
from the South Bend Redevelopment Commission and building a $1.75-million,
40,800-square-foot facility along Chapin Street. ABC Supply, now located at 2115
W. Western Ave., would be the tenant in the warehouse distribution facility. The
relocation will create two new full-time positions and retain 10 existing permanent,
full-time positions and one part-time position.
?
McCormick & Co. Inc., 3425 W. Lathrop Drive, is increasing its investment in a
previously announced expansion of its South Bend distribution facility for spices,
flavorings and seasonings. In 2010, McCormick announced a $5.9-million project to
build a 50,000-square-foot addition to its facility and add nearly $900,000 in new
equipment. But McCormick officials this month amended their original proposal to
accommodate a possible move of an existing brand of products to the South Bend
facility. The move would expand the addition by another 25,000 square feet.
McCormick’s total investment in facilities and equipment would also increase to
$14,031,583. McCormick originally planned to add five new positions, but already
has added 10 jobs and would add another 14 positions with the addition of the new
brand of products. The expansion also helps retain 123 existing, full-time jobs.
?
South Bend Gear LLC, a start-up company as part of an initiative between Schafer
Gear and an Italian firm, will produce engine gears for the North American heavy
truck market. South Bend Gear will acquire $15.6 million worth of turning, gear-
cutting and gear-finishing equipment as well as robots and automation equipment in
two phases. It also would construct a 50,000-square-foot facility at 3849 Showerlux
Drive in the Blackthorn area. Installation of the new equipment would begin this July
with final installation complete by February 2013. The project will create 12 new,
full-time positions immediately with a total of 26 permanent full-time jobs by the end
of phase two.
Tax phase-ins (also known as tax abatements) allow growing companies to phase in a
portion of new taxes on new equipment or facilities over several years to help support
business growth. The companies continue to pay existing taxes despite receiving
abatements on a portion of the new investment.
According to the resolutions under consideration by the Common Council:
?
Oliver Plow Partners would pay $99,509 in taxes over a four-year period while
saving $109,044 in new taxes phased in.
?
McCormick and Co. would pay nearly $1.9 million in existing taxes while saving
$125,205 in new taxes phased in over a five-year period.
?
South Bend Gear would pay an estimated $617,395 in new taxes while saving
$678,507 in personal property taxes on equipment over the five-year phase-in period.
Note: Mayor Luecke and Don Inks will be available for
questions/interviews following the Council
Committee meeting, this afternoon. This committee
meeting begins at 4pm.
# # #
Mikki Dobski, Dir.
Communications and Special Projects
1400 County-City Bldg
So. Bend, IN 46601
574-235-5855 w
574-876-1564 c
574-235-9892 fax
mdobski@southbendIN.gov