HomeMy WebLinkAbout18-66 South Bend Ethanol, LLC Desginating Tax Abatement Filed in Clerk's Office
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OCT 17 2018
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CITY OF SOUTH BEND
COMMUNITY INVESTMENT
JAMES MUELLER, EXECUTIVE DIRECTOR
October 17,2018
Council Member Gavin Ferlic,Chairperson
Community Investment Committee
South Bend Common Council
4th Floor,County City Building
South Bend,IN 46601
RE: Personal Property Tax Abatement Petition for: South Bend Ethanol,LLC
Dear Council Member Ferlic:
Please fmd the attached information pertaining to a personal property tax abatement petition submitted by
South Bend Ethanol,LLC to purchase a new equipment for their ethanol facility located at 3201 W.Calvert
Street, South Bend, 1N 46613. South Bend Ethanol plant started production in 1984. After going through
several owners and some turbulent economic times, Mercuria Investments US, Inc. purchased the
ownership interest in the plant from Noble Americas Corporation in December 2017 through a distressed
sale at a bargain purchase price. Immediately after closing on the acquisition,Mercuria announced that it
was committed to complete the reconstruction South Bend Ethanol plant allowing the manufacturing
capacity to increase from 65 million gallons per year to 100 million gallons per year.This petition package
includes:
> Department of Community Investment's summary report
➢ Petition
> Statement of Benefits form
' Supporting information
The report contains the Department's findings relative to the above petition. The petitioner proposes to
purchase new equipment with estimated cost of$29,700,000. The project meets the qualifications for a(5)
five-year personal property tax abatement. A representative from South Bend Ethanol, LLC will be
available to meet with the Committee on Monday,October 22,2018.
Should you or any of the other Council members have any questions concerning the report, or need
additional information,please feel free to call me at 235-5838.
Sincerely,
An elina Billo
Business Development Manager
DANIEL J.BUCKENMEYER ALKEYNA ALDRIDGE PAMELA MEYER TLM CORCORAN
BUSINESS DEVELOPMENT ENGAGEMENT&ECONOMIC EMPOWERMENT NEIGHBORHOOD DEVELOPMENT PLANNING&COMMUNITY RESOURCES
EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT
14005 County-City Building 1 227 W Jefferson Blvd.I South Bend,Indiana 466011p 574.235.9371 I www.southbendin.gov
Filed in Clerk's Office
OCT 1 7 2018
BILL NO. 18-66
KAREEMAH FOWLER
CITY CLERK, SOUTH SEND,IN
RESOLUTION NO.
A RESOLUTION OF THE COMMON COUNCIL OF THE
CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN
THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS
3201 W Calvert Street, South Bend, Indiana 46613
AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A
(5) FIVE-YEAR PERSONAL PROPERTY TAX ABATEMENT FOR
South Bend Ethanol, LLC
WHEREAS,a petition for personal property tax abatement consideration has been filed with
the City Clerk for consideration by the Common Council of the City of South Bend, Indiana,
requesting that the area commonly known as 3201 W Calvert Street, South Bend, Indiana
46613, and which is more particularly described as follows:
Business Personal Property
and which has Key Numbers to be assigned,be designated as an Economic Revitalization Area under
the provisions of Indiana Code 6-1.1-12.1 et seq.,and South Bend Municipal Code Sections 2-76 et
sem., and;
WHEREAS,the Department of Community Investment has concluded an investigation and
prepared a report with information sufficient for the Common Council to determine that the area
qualifies as an Economic Revitalization Area under Indiana Code 6-1.1-12.1,et sec.,and South Bend
Municipal Code Sections 2-76, et sec., and has further prepared maps and plats showing the
boundaries and such other information regarding the area in question as required by law; and
WHEREAS,the Community Investment Committee of the Common Council has reviewed
said report and recommended to the Common Council that the area qualifies as an Economic
Revitalization Area.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The Common Council hereby determines and finds pursuant to Indiana Code 6-1.1-
12.1-4.5 et seq., that:
a. The estimate of the cost of the new manufacturing equipment is reasonable for
equipment of that type;
b. That the estimate of the number of individuals that will be employed or whose
employment will be retained by the Petitioner can reasonably be expected to result
from the proposed installation of new manufacturing equipment;
c. That the estimate of the annual salaries of those individuals that will be employed or
whose employment will be retained by the Petitioner can be reasonably expected to
result from the proposed installation of new manufacturing equipment;
d. Any other benefits about which information was requested are benefits that can be
reasonably expected to result from the proposed new manufacturing equipment;and
e. The totality of benefits is sufficient to justify the deduction requested.
SECTION II. The Common Council hereby determines and finds that the proposed new
manufacturing equipment can be reasonably expected to yield the benefits identified in the Statement
of Benefits as set forth in Sections 1 through 3 of the Petition for Personal Property Tax Abatement
Consideration and that Statement of Benefits form completed by the petitioner, said form being
prescribed by the State Board of Accounts, are sufficient to justify the deduction granted under
Indiana Code 6-1.1-12.1-4.5.
SECTION III. The Common Council hereby accepts the report and recommendation of the
Department of Community Investment, and the Community Investment Committee's favorable
recommendation,that the area herein described be designated as an Economic Revitalization Area
for purposes of personal property tax abatement and hereby makes such a designation.
SECTION IV. The Common Council determines that such designation is for personal property tax
abatement only and shall be limited to two (2) calendar years from the date of the adoption of this
Resolution by the Common Council.
SECTION V. The Common Council hereby determines that the property owner is qualified for and
is granted property tax deduction for a period of(5)five years as shown below pursuant to Indiana
Code 6-1.1-12.1-17.
Year 1-100%
Year 2- 90%
Year 3- 80%
Year 4- 70%
Year 5- 60%
SECTION VI. The Common Council directs the City Clerk to cause notice of the adoption of this
Declaratory Resolution for Personal Property Tax Abatement to be published pursuant to Indiana
Code 5-3-1, said publication providing notice of the public hearing before the Common Council on
2
the proposed confirming of said declaration.
SECTION VII. This Resolution shall be in full force and effect from and after its adoption by the
Common Council and approval by the Mayor.
Tim Scott, Council President
South Bend Common Council
3
Filed in Clerk's Office
ocr zo1�
KAREEMAN F01^✓t ER
______j
CiTYCLERK, SOUTH t3FND, IN
TAX ABATEMENT REPORT " "`
TO: South Bend Common Council
FROM: Angelina Billo,Business Development Manager
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
South Bend Ethanol,LLC
DATE: October 17,2018
On Monday, September 24, 2018, a petition from South Bend Ethanol, LLC was received
and subsequently filed with the City Clerk for personal property tax abatement
consideration for property to be located at 3201 W Calvert Street, South Bend, IN 46613.
Pursuant to Chapter 2,Article 6,Section 2-84.2 of the Municipal Code of the City of South
Bend,this petition was referred to the Department of Community Investment for purposes
of investigation and preparation of a report determining whether the area qualifies as an
Economic Revitalization Area pursuant to I.C.6-1.1-12.1 and whether all zoning
requirements have been met.
The Department of Community Investment has reviewed the petition (a copy of which is
attached),investigated the area,and makes the following report.
PROJECT SUMMARY
> Estimated$29,700,400 purchase of new equipment for South Bend ethanol plant
> Manufacturing capacity to be increased to 100 million gallons per year from 65
million gallons per year
> The company will purchase additional 12.5 million bushels of corn in the local
market place from local fanners
> Estimated total taxes on the new equipment during the five (5) year abatement
period—$2,343,330
> Estimated taxes being abated during the five(5)year abatement period—$482,870
> Estimated taxes to be paid during the five (5)year abatement period—$3,220,606
EMPLOYMENT IMPACT
Per this petition,it is estimated that the company will:
➢ Continue to employ sixty-six (66) permanent full-time jobs representing a total
annual payroll of$4,294,865. The hourly average wage is$31.29.
D Create five (5) new permanent, full-time jobs within two years with a total
estimated annual payroll of$288,000. The estimated hourly average wage is$26.
ABATEMENT QUALIFICATION
1. A review of the tax abatements previously granted, finds that the petitioner has
been granted or associated with previous abatements.
a. The personal property tax abatement was granted in April 2014, a confirming
resolution#4340-14.
2. The Area Plan Commission has reviewed the petition and finds the property to be
properly zoned for the proposed project.
3. A review of the South Bend Redevelopment designation areas finds that the property
is located in the River West Development Area.
4. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner
meets the qualifications for a(5)five-year real property tax abatement under section
2-84.2,Tangible Personal Property Tax Abatement.
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iy
City of South Bend �" b
Petition for Incentives
144'
Petition must include a$250 filing fee payable to the CityClerk's Office or online via the Cft 's website of /
�eu.
http://southbendln.pov/po vemntent/content/tax-aboiement before processing con be complete
General Information SBE-2018 _ Project Name 65MM to 100M GPY Project Number 1
Legal nama'es registered with Secretary of South Bend Ethanol LLC
State
nosiness structure Single Member LLC
Companywebstte www.southbendethanol.com
Proposed Project Information
proposed project nddress $2Q1 W Calved Street parent company name Mercuric Investments US Inc
My,stat,vp `egaiow"at
South Bend IN 46613 South Bend Ethanol LLC
Site acreage or acreage required Is the real estate owned or Owned
63 occas �,�
Square feat of facility63 acres If leased try whom
Primary Contact Information
Primary company contort eameRobert Winks ntla Controller
Address of company canted3201 W Calvert Street phone 574-703-3359
City,state,ZJpSouth Bend IN 46613 Email robertwInks@southbendelhanol,com
Senior Official Information
Company senior olildalnone Boris Bystrov Title Vice President
Addrn.s of company contact nt different from 33 Benedict Place-1st Floor Phone 203-413-3378
1)411,,e1
City,
Email
aty,stote,Zlp Greenwich CT 06830 bbystrov@mercurla.com
Consultant Information/Agent
Hired business consuttant/agent name Consultant release( S)
Address Local economic developm ent partner
approval(Y/Nl }`
City,5tate,Zip Emoil 1
Project Overview
Briefbaalptlon of your See Attachment A
company,project,end why the ------
property Ie nacmary for
`economlcgeowlls Filed in Clerk's Office
so, 242016
KAREEMAH I rOWLER
CITY CLERK,SOL TH BEND,IN
Certified TedmolodyPark appropriate No
Is the project In a Ten lnaementat enondng River West DA
Fleroa?',so.which? -
we-iv thattho Building permit hesnot barn iTurdlier of reoidontfel unitraeated by
N/A
!scut,to/NI No mkt
Il this is a petition for personal property tanabatement,hes
No
the eguipmrnt beep Ins-tolled
Investment Details
Public Infrastructure needs loll- Has anyton funding been Whet Is the value of any equipment being pwchased In Whet is the value of any equipment being
site of project In dollars) received? Indiana for the project? purchased from out of state for the project?
0 0 $16,354,836 $13,645,164
I
Nevi Project Investments
Calendar Year 2018 2019 2020 2021 2022 2023 2024 2025
Land Acquisition t
1f1
Dullding lease Payments
(Wilding Purchase Costs
New Dull ding Construction
Existing Dullding Improvements k
New Machinery&Equipment 16,264,516 13,495,184 —_ t
special Tooling/notna ling
New Fomiture/Fixtures _ !
New Computer/IT Harulware I�
New Software
On-slto nail Infrastructure ft
On-elle Fiber bdrastructura 150,000 150,000
TOTAL 10,354,825 13,640,104
Full-Time Permanent Indiana-Resident Positions by Calendar Year
Calendar Year Jabs retained Total hourly Cumulative II ofnet PEW full Ume Hourlyiterelawoee,w/o Total training Total,to be
wane w/a perm anentjehs aeeted et project benefits orbanuses,of expenditure• trained-not
fringe or cumulative net new Jobs not cumulative
bonuses cumulative
2018 66 31.29
2019 5 26 20,000 4
}
2020
2020
2022
2023
2024
z02s
2026
2025
2020 -
2029 -
Provide hourly wage Information for new employees In the following positions.t.
Part time
Full time t '
Laborers 4 Ir
Technical 0
Managetiol 0
Administnllve 1
-who will be the individual responsible for coordinating with I(ari Porter•EMS HR
wvrlcInsonrev-lone? _
Does yourcompanyheve on EEO hlrrng policy? YES Are you an EEO empioyK! YES
Please list the number of full time and part time minority and/or ft:niale employees for each of PdPleasedesa Incribe clusion omour mitTent en to
the last three years; outreach and recruitment efforts fur the last
Year 26152016 2017 three years as well es current policies.
111.11111111111111 I
Full Time Part Vale f Full Tied Part Time Full Mite 1 Part Time
Black 4 0 4 0 5 0 Advertise and recruit from all
Hispanicavailable avenues to attract
5 0 3 _ 0 0 talent and enoourago diversity
Aston 0 0 0 0 0 0 and Inclusion
Indian 0 o 1 0 1 0 f
FemIe 3 0 5 0 6 0 i
Other 0 0 1 0 2 _ 0 _ {I
i;
Complete below for Real or Personal Property Tax Abatement only.
Please sign for all requested incentives.
Public Benefit Item:
Information Is required on both the construction companies and the
companies which will provide materials purchased for this project. Quality
Please complete the table below with the appropriate Information, If ferried Points Available Points
(Yes or No)
you qualify for the points,please enter the full amount of available
points.
1 CensirVrtion Related(Contractors): _
A. Employ Local Companies(75%) Yes 20 20
B. Purchase Materials from local Companies(75%) Yes 20 20
C. Require Employees vs.Independent Contractors Yes 19 19
0. Require Prevailing Wage(Davis Bacon) No 0 22 I
E. Require Healthfenefts Yes 22 22 I
F. Require Pension Benefits Yes 18 ie
G. Maintain Affirmative Action Plan No 0 20
Sub-total Construction Related: 99 141
2 Waga&Benefit Related(Owner):
A. Pay Target Wage levels Yes 33 33
B. Provide Health Benefits Yes 34 34
C. Provide Pension Benefits Yes 29 29 5
D. provide Training Yes 28 28
E. Preside Child Care No 0 15
F. Provide Transportation Assistance No 0 14
G. Provide Employer Assisted Housing program No 0 9
Sub-total Wage F.Benefit Related; 124 162
3 Workforce Related:
A. Create New lobs Yes 42 42
B. Retain Existing Jobs Yes 41 41
C. Maintain Affirmative Action Plan NO 0 35
D. ProvldeTargetedHiring Preference
Yes 34 34
Sub-total Workforce Related: 117 152
4 smart a Municipal Facility(
Supporta Se Municipal Facility(donations to the
r
A' zoo,conservatory,museum,etc.) Yes 84 84
Name ofFacility South Bend City Parks Department
I 'Sub-total Municipal Facility: 84 64
Sub-total from Above: 424 539
The undersigned ownor(s)of real property,located within the City of South Bend,herhy petition the Common Council of the Gty
of South Bend for a real and/or personal property tax abatement consideration and pursuant to I.C.,6-1.142.1-1,et seq.,and
South BendMynl ,2-76 et seq.,for this petition state the above.
Submitted By: —1-77j--- -- Date: I August 1,201h
/ . ,
For Staff Use Only Below This Line
What lsthe current1i'sessedv`alue? Real Property; 71 Yf/� 3 a1) Personal Property; 36..‘",f 20ci
What lsthoprojactod assessed value? Real Property: Personal Property: 9./ C oo )
Whet lrthetax hey number for lhispro)ed7 rn
J� /7f o C�O_o
What lsthe six dlgltNAILS code? y y 57 .93
Please attach o Google mop end sireet vlewafthe)ectlon.
Please list the amount areal end personal property vexes Aoal Property Teres: Personal Property Taxes;
paid for the last live years when opplimble. p
.20/7//d9 Yearono 45,5 f O Z Q c rfC 05 V
e( /� Ax.YTTVo /671 /a(^ '7✓ '�"t9�
„to/ /, YearIhree /O �O/(� , 72- -1cf�P
2O/�� /�Yeerlour ( tie c6 J/,4 3c?
//y{ Year live /D/ O 7 C
Please fill out the following Public Benefit Summary Information and add to total from above,
I i
jYorNj Paints Points
Public Benefit Item:
lJ Project Related:
5 A. Redevelop a Site that has Special Needs 49
0. Develop Based on Local University Research 35
C. Achieve a Physical Element of a Plan ---- 6___,,,)
Subtotal Project Related: 120
/
6 Scott She Nabets(point values are cumulative):
A. 100%to 199% 25
0, 200%to 299% 68
C. 300%to 399% 65
D. 400%and Over 52
Subtotal Super Size Projects: 210
7 Pay for Municleallniresiructurei
A. Pay for Oversloing or Upgrading 14
B. Pay for 26.50%or Extension Cost 26
C. Pay for 51-75%of Extension Cost _ 39
D. Pay for 76-100%of Extension Cost 52
Sub-total Infrastructure Related: 131
Total from Applicant Section: 539
Total tram Staff Section461
Total Public tioneilt Points: 1000 I14
loci in Clerk's Office�
k I
SEP 242018
` - STATEMENT OF BENEFITS FORM 58-7 1 PP
a ''`::. PERSONAL PROPERTY KAREE•MVIAH FOWLER
vt e> 4.li Stain Femr 61704(R4111.16) I (:I•I (CLERK,SOUTH BEND,IN
,vim:: Prescribed by the Department of Local Government,FInence---.-----'----•--- ------ PRIVACY NOTICE
Any Information concerning the cost
of the property end specific salaries paid
to Individual employees by the proper/
owner Is confidential per IC 5-1.1-12.1.5.1.
INSTRUCTIONS
1. This statement must be submitted to fire body designating the Economic Revitalization Area prior to the public hearing If the designating body requires
Information from the applicant In malting its decision about whether to designate en Economic Revitalization Area- Otherwise this statement must be
submitted to the designating body BEFORE a person Installs the new manufacturing equipment and/or research and development equipment,end/or
logistical distribution equipment and/or information technology equipment for which the person wishes la claim a deduction.
2. The statement of benefits form must be submitted to the designating body and the area designated en economic revitalization area before the Installation
of qualifying abatable equipment for which the person desires to claim a deduction.
3, To obtain a deduction,a person must file a certified deduction schedule with the person's personal property return on a codified deduction schedule
(Form 103-ERA)with the township assessor of the township where the property Is situated or with the county assessor If there Is no township assessor
for the township, The 103-ERA must bo filed between January 1 end May 15 of(he assessment year In which new manufacturing equipment
and/or research and development equipment and/or logistical distribution equipment and/or information technology equipment Is Installed and fully
functional,unless a filing extension has been obtained. A person who obtains a filing extension must file the tem between January 1 and tha extended
due date of that year.
4. Properly owners whose Statement of Benefits was approved,must suhnrit Form CF-1/PP annually to show compliance with the Statement of Benefits.
(IC 6-1.1-12.1-5.6)
5. Fora Form SB-1/FP that Is approved after June 30,2013,the designating body Is required to establish an abatement schedule(or each deduction allowed.
Fore Form S8-1/PP that Is approved prior to July 1,2013,the abatement schedule approved by the designating body remains In effect (IC 6-1.1-12,1-17) •
SECTiO.N 1 TAXPAYER INFORMATION
Noma of taxpayer Name of contact person
South Band Ethanol LLC Robert Winks
Address of taxpayer(number and street,city,slate,end ZIP coda) Telephone number
3201 W Calved Street,South Bend,IN 46613 (574 ) 703-3360 '
_ r
SECTION'2 LOCATION AND.DESCRIPTION OF PROPOSED PROJECT
Name of deslgnallno body Resolution number(s)
South Bend City Common Council
Locales of property County DLGF taxing district number
3201 W Calvert Street,South Bend,IN 46613 Saint Joseph 7126032 I
Description of manufacturing equipment and/or research end development equipment ESTIMATED i
and/or logistical distribution equipment end/or Information technology equipment. START DATE COMPLETION DATE I
(Use additional shoats If necessary.)
2-Boilers, 12-Fermentation Tanks,2-Centrifuges,Trlcanter,Dryer, Manufacturing Equipment 08/01/2018 12/31/2019
Beerwell,Heat Exchangers and miscellaneous equipment
R&D Equipment
Logist Dist Equipment I
IT Equipment 10/01/2018 12/31/2019
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
1
Current number Salaries Number retained Salaries Ncmber❑ddiLbnal Salaries I
66 $4,294,865 66 $4,294,855 5 288,000
SECTION 4 ESTIIt$ATED TOTAL COST AND VALUE OF PROPOSED PROJECT i
NOTE;Pursuant to IC s-1.1-12.1-G.1(cq(2)the MANUFACTURINGLOGIST DIST R&D EQUIPMENT IT EQUIPMENT
EQUIPMENT EQUIPMENT
COST of the properly is confidential. Cosi ASSESSED COST ASSESSED COST ASSESSED COST ASSESSED
VALUE VALUE VALUE VALUE 1
Current values 138345/4 553/152 121400 65832 I
297000UU 11680000 300000 120000 J
Plus estimated values of proposed prolecl
Less values of any property being replaced 860401 344161
Net estimated values u.on cam.Ietion of ro act 42674173 17072991 42t4au 175832
SECTION S WASTI CONVERTED;AND OTHER DE 17S CRQMISED'BY THE'_TAXPAYER _
Estimated solid waste converted(pounds) None Estimated hazardous waste converted(pounds) None
Other benefits:
f l
S�iI.QN 8. _ t
I hereby cP the repre9•11rs In this statement are true. f
Slgnale f t^ad reprouttr • Delo signed(month,day year)
// ('---- August 1,2018
rin)d name ataulladg d representative Tltie
Boris Bystrov Vice President j
Page 1 oft
1 ,
1 •
i
.".. ,, -." FOR USE OF THE DESJG,NATING$BRY:.'.::: z,
We have reviewed our prior actions relating to the designation of this economic revitalization area and find that the applicant meets the general standards
adopted in the resolution previously approved by this body. Said resolution,passed under IC 6-1.1-12.1-2.6,provides for the following limitations as
authorized under iC 6-1.1-12.1-2.
A.The designated area has been limited to a period of(ime not to exceed calendar years"(see below). The dale this designation expires
Is . NOTE This question addresses whetherthe reseiutton contains an expiration data for the designated area.
B,The type of deduction that Is allowed In the designated area is limited to: Yes ❑N o ❑ Enhanced Abalement per IC 6.1,1.12.3.16
3.Installation of new manufacturing equipment; Enhanbed11ane ant per IC 6-1,abateme1-12.1-16
2,installation of new research and development equipment; ❑Yes D N o
❑Yea [�No approved tor one ormomofthese types.
3,installation of new logistical distribution equipment.
4.installation of new Information technology equipment; 0 Yes ❑N o
C.The amount of deduction applicable to new manufacturing equipment is limited to$ cost with an assessed value of
$ . (One or both lines maybe filled cut to establish a limit,if desired..)
D.The amount of deduction applicable to new research and development equipment Is limited to$ cost with an assessed value of
$ . (One or both lines maybe filled out to establish a limit,If desirred.)
E.The amount of deduction applicable to new logistical distribution equipment is limited to$ cost with an assessed value of
$ . (One or both lines maybe filled out to establish a limit,if desired.)
F. The amount of deduction applicable to new Information technology equipment Is limited to$ coat with an assessed value of
$ . (One or both lines maybe filled out to establish a limit,if desired.)
O.Other limitations or conditions(specify)
H,The deduction for new manufacturing equipment and/or new research and development equipment and/or new logistical distribution equipment and/or
new Information technology equipment installed and first claimed eligible for deduction Is allowed for:
0 Enhanced Abatement per IC 6-1.1-12.1-1 e
CI 0 Year 2 13 Year 3 ❑ Year4 D Year6Number of years approved:
0 Year 6 El Year 7 El Year 8 ❑ Year 0 ❑ Year 10 (Enter one to twenty(1-20)years;may not
exceed twenty(20)years.)
I. Fore Statement of Benefits approved alter June 30.2013,did this designating body adopt an abatement schedule per IC 6.1.1-12.1-177 ❑Yea El No
If yes,attach a copy of the abatementschedula to this form.
If no,the designating body is required to establish an abatement schedule before the deduction can be determined.
Aieo winethat
ti the the Information
nfor atifo la ons len In
the
eistffy tee deduction of benefits
ene is end
fi find that the estimates and expectations are reasonable and have
detove.
Approved by:(a/erratum and hila ofeulheliizedmember atdeslpaaing body) Telephone number Date slimed(month,day,year)
( )
!Printed name of authorized member of designating body Name of designaling body t
Attested by:(stpna(uro and We ofadas(ar) Printed name of attester
if the designating body limits the lime period during which an eras Is an economic revitalization area,that limitation does not limit the length of time a E!
taxpayer is entitled to receive a deduction to a number of years that is less than the number of years designated under IC 6-1.1-12.1-17. J
IC 8.1.1-12,1-17
Abatement schedules
Sen.17.(a)Adesignating body may provide to a business that Is established In or relocated to a revitalization area and that receives a deduction under sedan 4 or 4.5
of this chapter an abatement schedule based on the following factors:
(1)The total amount of the taxpayer's investment in real and personal property,
(2)The number of new full-time equivalent jobs created.
(3)The average wage of the new employees compared to the state minimum wage.
(4),'he infrastructure requirements for the taxpayer's Investment.
(b)This subsectlon.appfes to a statement of benefits approved after June 30,2013.Adesignating body shall establish an abatement schedule for each deduction
slowed under this chapter.An abatement schedule must specify the percentage amount of the deduction for each year of the deduciion.An abatement schedule may
not exceed ten(10)years.
(a)An abatement schedule approved fore particular taxpayer before July 1,2013,remains In effect until the abatement schedule expires under the terms or the
resolution approving the taxpayer's statement of benefits,
Page 2 of 2 I
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F ilc,d in (lerf<'Y,(ffioO
SF-I'
' c -� South Bend Ethanol LLC�01Q 3201 West Calvert Street
!i i<I�I tr il�l,�i i i=C)WI_ER South Bend,IN 46613-1010 �(
CM'CLERK,SOOT!I BEND,IN Phone: 574-703-3360
SOUTH BEND ETHANOL -- Fax: 574-703-3376
Website: www.southbendethanol.com
PROJECT OVERVIEW
Brief Description of your company,project and why the property is necessary for economic growth
The South Bend Ethanol plant started production in 1984. After going through several owners and some turbulent
economic times, Mercuria Investments US, Inc. purchased the ownership interest in the plant from Noble Americas
Corporation In December 2017 through a distressed sale at a bargain purchase price. Immediately after closing on the
acquisition, Mercuria announced that it was committed to complete the reconstruction South Bend Ethanol (SBE)plant
allowing the manufacturing capacity to increase from 65 million gallons per year to 100 million gallons per year, Mercuria
Is a privately held company building a solid balance sheet and substantial equity in less than 20 years.
The economic impact to the local area from the additional 35 million gallons of ethanol will provide at least$140 MM of
direct local economic benefit annually through incremental product sales and input purchases. Ethanol is an additive to
gasoline. The increased ethanol throughput will allow SBE to meet all of the end customers' demand within a 50-mile
geographic radius from the plant. Also, by-products, like Dried Distillers Grains (DDG), could then be loaded into
containers for export to foreign markets reversing our current process of transporting DDG to Illinois for loading in
containers for export from there. Of course, the increased volume will require additional corn purchases In the local
market. We will purchase an additional 12.5 million bushels of corn in the local market place allowing corn grown here to
be used here and allowing farmers to have a more competitive marketplace for selling corn.Also,local vendors will benefit
by more chemical,electric,gas and other variable manufacturing purchases. City utility usage is anticipated to increase.
This project will definitely benefit the local economy.
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