HomeMy WebLinkAbout18-67 South Bend Ethanol, LLC Confirming Tax Abatement Filed in Clerk's Office
d OCT 1 7 2018
�+�\�HAICE''� fWf'9 i�L^��Ai 1 FC�/xYt.f"�'1
; '.5 CITY CI-REE ,�7u' ,r iv�J Irr� t
.=, = e�- .. .._..-._._..I
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: I
Please find the attached information pertaining to a personal property tax abatement petition submitted by 1
South Bend Ethanol,LLC to purchase a new equipment for their ethanol facility located at 3201 W.Calvert
Street, South Bend, IN 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
D 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,
C6e—
An elina Billo
Business Development Manager
DANIELJ.BUCKENMEYER ALKEYNA ALDRIDGE PAMELA MEYER TLMCORCORAN
BUSINESS DEVELOPMENT ENGAGEMENT&ECONOMIC EMPOWERMENT NEIGHBORHOOD DEVELOPMENT PLANNING&COMMUNITY RESOURCES
EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT
14005 County-City Building 1227 W.Jefferson Blvd.I South Bend,Indiana 46601 I p 574.235.9371 I www.southbendin.gov
Filed in Clerk's Office
OCT 1 ./ 2016
BILL NO. 18-67
KAREEMAH FOWLER
RESOLUTION NO. CITY CLERK,SOUTH BEND,IN
A RESOLUTION CONFIRMING THE ADOPTION OF A
DECLARATORY RESOLUTION DESIGNATING CERTAIN AREAS
WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY
KNOWN AS
3201 W Calvert Street, South Bend, Indiana 46613
AS AN ECONOMIC REVITALIZATION AREA FOR
PURPOSES OF A FIVE (5) YEAR PERSONAL
PROPERTY TAX ABATEMENT FOR
South Bend Ethanol, LLC
WHEREAS, the Common Council of the City of South Bend, Indiana, has
adopted a Declaratory Resolution designating certain areas within the City as Economic
Revitalization Areas for the purpose of tax abatement consideration; and
WHEREAS, a Declaratory Resolution designated 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; and
WHEREAS, notice of the adoption of a Declaratory Resolution and the public
hearing before the Council has been published pursuant to Indiana Code 6-1.1-12.1-2.5;
and
WHEREAS, the Council held a public hearing for the purposes of hearing all
remonstrances and objections from interested persons; and
WHEREAS, the Council has determined that the qualifications for an economic
revitalization area have been met.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
South Bend, Indiana, as follows:
SECTION I. The Common Council hereby confirms its Declaratory Resolution
designating the area described herein as an Economic Revitalization Area for the
purposes of tax abatement. Such designation is for personal property tax abatement only
and is limited to two (2) calendar years from the date of adoption of the Declaratory
Resolution by the Common Council.
SECTION II. The Common Council hereby determines that the property owner is
qualified for and is granted personal property tax deduction for a period of five (5) years
as shown by the attachment pursuant to Indiana Code 6-1.1-12.1-17 and further
determines that the petition, the Memorandum of Agreement between the Petitioner and
the City of South Bend, and the Statement of Benefits comply with Chapter 2, Article 6,
of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-12 et seq.
Year 1-100%
Year 2- 90%
Year 3- 80%
Year 4- 70%
Year 5- 60%
SECTION III. This Resolution shall be in full force and effect from and after its
adoption by the Common Council and approved by the Mayor.
Tim Scott, Council President
South Bend Common Council
Filed in Clerk's Office
OM 1 7 Z018
BILL NO. 18-66 --- -�
KAREEMAH I=c"sWLz a
CITY CLERK, SOUTH BEND 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
seq., 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 sed.,and South Bend
Municipal Code Sections 2-76, et seq., 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
°Cr 1 7 2018
KAREEMAI-1 FOWLER
CITY CLERK, SOU-1 H BEND, 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
D. Estimated$29,700,400 purchase of new equipment for South Bend ethanol plant
D Manufacturing capacity to be increased to 100 million gallons per year from 65
million gallons per year
D The company will purchase additional 12.5 million bushels of corn in the local
market place from local farmers
D Estimated total taxes on the new equipment during the five (5) year abatement
period—$2,343,330
D Estimated taxes being abated during the five(5)year abatement period—$482,870
D 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:
D 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.
O ,'.&", Lc' NOOOO o Oco) OOO
(0o'. ' pC' oo <Y o) ncOCO 00 CO
V CD: C) N CD O N V CO CO 0) 00 M CO_
-i} A^ CD 0) N 0 r-•
N) OW CO CO
_1 CO CO CO 0) CO
'� � oco <- � � rvm co co
CA M co-V
W V N C6 O CSD 0 CO0O CD CO N LO O M COO O CC Z H. Q N CD CO CD CO CD
fir: a) N
U } Cp CO M N h C. (U CMC) LU CD 0) co.O CO N
Q B O O N CO CO N- ti N- r C' LO CO r CO N
OCD r- CO- M
O o M a 0000 0 000 CO 0) 0 0) a
N- 0 0 0
Co co. N 0 C• o O C' o) co CO CO CO C-. n CMO Cr' �
00 c0 N N CD O CO CO LO CO CO CO CO
.>- a)COc CMD o 'd' CD CO 0) CO COCQ 2 - m 00
�t d O h 0) 00 CC) (O (0 M N N d•
ai.
o) co-CL N
59
000 0 N 0000 o N O N o) 00) U N CD 0)
CO N
•' Od' O OO.' N O 'cL00CL o) C' C' N CV CZ x NCflMM C'
O 0 0 0 Cfl I U N CD 0 O CO CO 0) CD CO CO
U 0 r.,..-0-
0 N0MCALO
(O co dS
O m O O C ~ N O PM') '-co"OD O
Q) N p ti �., a COO CONCOO � • LI) tO M 00 0 m (O M M M M
0) o) ".. ON (OO N
Q. 0 co' c"' ' x ,— r
O W W
r`
C O O .- -- - 0000 o ODOM D) 0 0 CD u 0 OMC• C00 M >
crs F• O CO 0 C�0 0 O CD CO N- NI NI
V V Z •p x Cr CO co_r co M x a)
,03 V"m- .. N LU CO co F' CO 01- C') CO N
}I -Q } d CO coM03 CD 30 OV CO. CND N 4. 000 CMO CO 'MV V M a)
(13 ._` X
W O k of c Di N :°
- Q. � � v F� N
C
a) az) � N 7
MM d m w 6 o
WCQ CI)
CD al C0' •0d• 00 m O CD 0 O C x CD CD CD N 0) 'Cl' C
• r co N N N CO
O OC N P ~ CD M o 1 (00 O 0 *>7 I— NNNNN O X "
.a Q v > CD O C' Off) N NNS• N- N w ti N- r ti ^ CO 4-, Cl)
03
}r 0 �, Nr UQO O LU '7 NN N N NNNNN CO_ •C-•
CD 'C)
O O O CD CA lA ) C
' < UR
C
V^!
L. Q F O
(D• O ' c MNI' CO a) 7
•p U>- a) D) a) a) D) N •O
N v a) o o >- >- >- >- >- to (6 U
u)• d. 0 00 O CO a)
Z a) O_ OO F- TN
a) C (O M O O CO
• � � COOD
ro CD CD
CD
H U W(Cl aII
m Z
o P, t0 CD m •• N -. N €
vim c U m U a) (D
ca f0 CO 'a Zr) x IA X Y CO Cl) Y - O 'O
> U to l6 w
'p N > N f-' C CO Ca U m 43) N m cn d
a) a) N E Q m C 'Xm'' CDCD ~ Y 7 •_ '-30 w
7 m (D '- N
✓ as
< < 2 $ z FN 2_ Z p5Ui0 ` � m E
Q C Q Q E U) U �= L y 3
W � of y U)) O W I • � •3
>- 0tJ Q 0J U ML ,, 1i
1
I
r
City of South Bend ,e5a
Petition for Incentives ,..r ,'. ;
petition must include a$250 filing fee payable to the City Clerk's Office or online via the City's website of
14"6-3-::.
httAWsouthbendin.goe/govemmenticontent/tax-obaternen
ss--
httAWsouthbendln,0ov/0avemment/content/tax-abatement before processing can he complete
General Information SBE-2018 Project Name 65MM to 100M SPY Project Number 1
Legal oathucsreglOoted with Secnetsry if
South Bend Ethanol LLC
State
uuusInessstructure Single Member LLC
company website www.soulhbendethanoi.com
Proposed Project Information
Proposed project address3201 W Calvert Street parent company name Mercuria Investments US Inc
City,State,2lp South Bend IN 46613 Legal owner South Bend Ethanol LLC
Site acreage or acreage required letho reit ertotC owned or Owned
63 acres deaswt
Squorn rent of facilityIf leased by whom
63 acres
Primary Contact Information
Prlmary pampa nycontact nameRobert Winks 11110 Controller
Ark/mu atcompany conhcl3201 W Calvert Street Phone 574.703-3359
city,State,zrpSouth Bend IN 46613 Emell roberiwinks@southbendethanoi.com
Senior Official Information
Company senior official name Boris Byetrov Tide Vice President
Address of c ,penyeonwa(Itdlfterencrom 33 Benedict Place-1st Floor Phone 203-413-3378
above) Email
city,state,zlp Greenwich CT 06830 hbystrov@ntercurla.com
Consultant Information/Agent
lilted businesscansuttanlfageot name Consultant release(YMN) i
Address lural economicdevelopment partners
ePpiovcl(Y/N) •
city,State,ilp Ewell ks
Project Overview
eriiftlesaiptlon otyour See Attachment A
company,project,and why the —"'-'I
propeylsnecessaryfor Filed in Clerk's Office
a`trTnomic flrowtlr 1
SEP242018
KAREEMAH I'OWLER
CITY CLERK,SOL TH BENZ],IN
Certified Technology Park appropriate No
Is the protect InaToxIncremental Financing River West DA
rrIPterea?II so.which? _.
co-try eiet lho Building Permit hes not been tfurdber of residential units created by N/A
issued PamNo orotnet
If this lea petition for personal property tot abatement,hes No
the equipment keen Idled '
Investment Details
public tnfrn,froclunc needs(Off. Hes any 509 funding been What ts the value eofany
qip entlgpurchasedIn Whet
tIsthe
value
Olied from out of yeeuip ent tbathe e7
e
site of project In dollars) received? teup 1ebRp
0 0 $16,354,636 $13,645,164
New Prolect.lnvestntents
Calendar Year 2018 2019 2020 2021 2022 2023 2021 2025
Lend Acqulsltlon
Building Lease Payments
Building Purdmse Costs _.
•
New Building Constar Iden
Existing Oullding Improvements k
New Machinery&Equipment 16,204,830 13,495,184 - --.
Special Tooling/notooling
New Fumilure/Fixtures
New Computer/Ir Harslwa re I(
Now software
On-slla Rall Inrnstruclure
On-site fiber Infrastructure 150,000 150,000
TOTAL ,10,354,000 13,646,184
Full-Time Permanent Indiana-Resident Positions by Calendar Year
Calendar Year Jabs retained Total hourly Cumulative 6 of net!EW full time Hourly mom wage,w/o Total training Total N to be
wage win permanent lets aeated et project benefits or tuunur ,of expenditure- trained-not
fringe or cumulative net new lobs nat cumulative
bonusas cumulative
2018 66 31.29
2015 5 26 20,000 4
2020
2021 ——
2022
2823
0024 `
2025
2026
2025
2028 .
2025 -
Provide hourly wage Information for new employees in the following positions.
Full time Fart time
Laborers 4
Technical 0
Managerlal 0
Administrative 1
•, o •o t o n.v.ua respon1•a •rcoor•na new Karl Porter-EMS HR
Wo1sOno on remrona7 J
Does your company have en EEO hiring pdncY7(YES I j Are youanEEO empfoF*ei7 1YES
Please list the number of full time and part time Minority and/or female employees for each of diversity Please
de d inclusioneyour
commitmby entg to
the last three years;
outreach and recruitment efforts for the last
Year 2Q15 2016 _ 2017 three yearseswenascurrentpondess-
FullTimee I Barri-he Full Tl,md Part Time Full Thlte 1 Part"Elate 11
MO, 4 0 4 0 5 0 Advertise and recruit from all
Hispanicavailable avenues to attract
6 0 _3 .__ 0 2 0 talent and encourage diversity
Aslan 0 0 0 0 0 0 and Inclusion
Indian 0 0 1 0 1 0
Female 3 0 5 0 6 0
Mar 0 0 1 0 2 0 •
Complete below for Real or Personal Property Tax Abatement only.
Please sign for all requested incentives.
Public f3eneflt Item:
Information Is required on both the construction companies and the
companies which will provide materials purchased for this project. quality
Please contplete the table below with the appropriate Information. If (Yes or No) l;Med Points (41/pliable Points
you qualify(or the points,please enter the full amount of available
points.
1 Cpnstrpctloa Relpted(Contractors):
A. Employ Local Companies(75%) Yea 20 20
B. Purchase Materials from Local Companies(75%) Yes 20 20
C. Require Employees vs.Independent Contractors Yes 19 • 19
D. Require Prevailing Wage(Davis Bacon) No 0 22
E. Require Health Benefits Yes 22 22
F. Require Pension Benefits Yes 18 18
G. Maintain Affirmative Action Plan No 0 20
Sub•total Construction Related: 99 141
2 Wags&BannlltRelated(owner): i
A. Pay Target Wage levels Yes 33 33
B. Provide Health Benefits Yes 34 34
G Provide Pension Benefits
Yes 29 29
D. Provide Training Yes 28 28
E, Provide Child Care No 0 15
F. Provide Transportation Assistance No 0 14
G. Provide Employer Assisted Housing program No 0 9
Sub-total Wago&Bandit Rotated: 124 _ 162
3 worldorsc Rolattd:
A. Create New Jobs Yes 42 42 .
B. Retain Existing Jobs Yes 41 41
C. Maintain Affirmative Action Plan No 0 35
D. Provide Targeted Hiring Preference
Yes 34 34
Sub-total Workforce Belated: 117 152
4 Sueenrt o Municipal FaciflIvi
Support a SB Municipal Facility(donations to the
Yes 84 1l1
A. zoo,conservatory,museum,etc.) 84 —
Name of Facility South Bend City Parks Department
I ISub-total Municipal Facility: 84 84 II
sub-total from Above: 424 539
The undersigned owner(s)of real property,located within the City of South Bend,herby petition the Common Council of the Gty
of South Bend fora real and/or personal property tan abatement consideration and pursuant to I.C.,C-1.1-12,1-1,et seq.,and
South Bend Mynlfrpa!Co e"5�.2-76 et seq.,for this petition state the above.
Ir
Submitted I3 T Date: I August 1,2018
i
1
For Staff Use Only Below This Line
What is thecmrrento"ss`essedvalue7 Real Property: �![��/13Ot� ParsonalProperly: J6/�YJ ,o 8°.
What Is the projected assessed value? flea'Properly: Personal Property: ,f1 (J O 0ot2
Whoththotax key number for thlsproject? -7-XJ 1) 77 0 6 t/
/
What's the clxdlgltNAILS code? 32—37 93
Please attach a Google mop and siredview of the'cation.
7
Please list the amount areal end personal property taxes Peal PropertyTaxes; Personal Property Taxes: ,
paid for thelast
five years when app!Imble. y p (� Q/.-�
20/7//C Year Ono '63/O.y/.2, ((7 /� �/v /
q�,0765 /y *lir Two 671 tl2f� ! 77 '`-D-p
O✓"/ ((�, 6 Year Three 70 60/ 5 ` � -1cfc
.2o/r'�(//�Yeariour (t�� (269.5— ,l/�U 7 d -------
204 /u Yearfvo /p/ 6 o-
// / Please fill out the following Public Benefit Summary Information and add to total from above,
IYorNI Points Points
public Benefit Item:
Protect ffeletedt
5 A, Redevelop a Site that has Special Needs 49
D. Develop Based on Local University Research 35
C, Achieve a Physical Element ore Plan ---- ,
Subtotal Project Related: 124)
6 Super Stu projects(point values are cumuiativol;
A. 100%to 19956 25
0. 200%to 299% 68
C, 300%to 399% 65
D. 400%and over 52
Subtotal Super She Projects: 210
7 Pay for MUnIclnfl Infrastructure:
A. Pay for Overslting or Upgrading 14
B. Pay for 25-50%of Extension Cost 26
C, Pay for 5l-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 from Staff Section: 461 I`
Total Public 0enellt Points: 1000
! Fiioci in Clerk's Office
SEP 2 4 2010
I
.: ;,� STATEMENT OF BENEFITS FORM 513-7 I PP
e, PERSONAL PROPERTY I�f�Rif�'IRiiAI 1 f-OWLER
l I.i ! State Form 51764(R4111.16) 1 (:I•I 'r CLERK,SOUTH BEND,IN
".LPrescribed by Iho Department of Local Government Finance-- •�---•---^—_._.._.- PRIVACY NOTICE
Any Information concerning the cost
or the property end specific salaries paid
to Indluldual employees by Iho property
owner Is confidential per IC 6-1.1-12.1-.S.1.
INSTRUCTIONS
1. This statement must be submitted to the body deslgneting 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. Othenvise this statement must be
submitted to the designating body BEFORE a person Installs the new manufacturing equipment and/or research and development equipment,and/or
logistical distribution equipment and/or information technology equipment for which the person wishes to claim a deduction.
2. The statement of benefits form must be submitted to iho designating body and the area designated en economic revitalization erca 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 certified 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 the 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 four between January 1 and the extended
due date of that year.
4. Property owners whose Statement of Benefits was approved,must submit Form CF-1/PP annually to show compliance with the Statement of Benefits.
(IC 6-1,1-12.1-5.6)
5. Fora Form SEI-1/PP that Is approved alter June 30,2013,the designating body is required to establish an abatement schedule for each deduction allowed.
Fore Font S9-1/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)
SECTION 1 TAXPAYER INFORMATION _ , .-. i
Nome of taxpayer Name of contact person I
South Bend Ethanol LLC Robert Winks
Address of taxpayer(numberand street,dhi slate,and ZIP cola) Telephone number
3201 W Calvert Street,South Bend,IN 46613 (574 ) 703-3360
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of deefpnattno body Resolution number(s)
South Bend City Common Council
Locallon of properly County OLGF taxing disidct number
3201 W Calvert Street,South Bend,IN 46613 Saint Joseph 7126032
Description of manufacturing equipment and/or research end development equipment ESTIMATED
and/or Loggistical distribution equipment and/or Information technology equipment. START DATE COMPLETION DATE i
(Use adUlllonal shoats If necessary.)
2-Boilers, 12-Fermentation Tanks,2-Centrifuges,Trlcanler,Dryer, Manufacturing Equipment 08/01/2018 12/31/2019
Beerwell,Heat Exchangers and miscellaneous equipment R&D Equipment
Logist Dist Equipment `
IT Equipment 10/01/2018 12/31/2019
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
i
Current number Salaries Number retained Salaries Numberoddlldonal Salaries t
66 $4,294,865 66 $4,294,865 5 288,000
SECTION 4 ESTIMATED TOTAL COST AK)VALUE OF PROPOSED PROJECT `
MANUFACTURING LOGIST DIST `
NOTE:Pursuant to IC 6-1.1-12.1-5.1(1)(2)the R&D EgUIPMENI' EQUIPMENT IT EQUIPMENT r
EQUIPMENT
COST of the property Is confidential. COST ASSESSED COST ASSESSED COST ASSESSED COST ASVALUESESSED I
VALUE VALUE VALUE r
t.
138345/4 553/152 121400 65832 •
Current values
Plus estimated values of proposed project 29700000 11680000 300000 120000
Less Values of any property being replaced 861)401 344161 {
Net estimated values u.on corn 421400 175832�Iel(on of,ro act 42674173 17072991
9ECTIO.N S WASTE COIWER:WDAAND OTMER OBITS rim/meow'NIE'E°x PAYER-
None None
Estimated solid waste converted(pounds) _ Esllmated hazardous waste converted(pounds)
r
Other banoflls: t
S
' SJILQN 6: TAX.AAYER c`�e�iTIFIC TIQN . . {`
I hereby ce . 'the repres Ifs In this statement are true. _ 1
Siunalu • cod repre;yrf Delo stoned(month,day,year) I
August 1,2018 I
'dn}•d some of aulhodg d representative —Tit',Boris Bystrov Vice President , ,
Pagel oft ilii; I
i
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 61.1-12.1-2.6,provides for the following limitations as i!1
authorized under IC 6-1.1-12.1-2.
A,The designated area has bean limited to a period of lime not to exceed calendar years"(see below). The dale this designation expires
is . NOTA This question addresses whetherthe resolution contains en expiration date for the designated area.
•
B.The type of deduction that Is allowed In the designated area Is limited to:
1.installation of new manufacturing equipment; El Yes Abatement❑N a ❑ Enhanced per IC 6-1.1.72.1•i8
2,installation of new research and development equipment; ❑Yes ❑N a Check anbox II an enhanced per abatement was
3.Installation of new logistical distdbutlon equipment.
❑Yes ❑No approved!or one armors of these types.
4,installation of new Information technology equipment; ❑Yes ❑No
C-The amount of deduction applicable to new manufacturing equipment is limited to$ cost with an assessed value of
$ . (One or bath lines maybe filled out to establish a limit,if desired.)
D.The amount of deduction applicable to new research and development equipment 1s limited to$ cost with an assessed value of
$ , (one or both lines maybe filled out to establish a limit If desired.)
E.The amount of deduction appiicable to new logisticaidlstdbutton equipment is limited to$ cost with an assessed value of
$ . (One orboth lines maybe filled out fo establish a limit,lfdesired.)
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.)
G.Other limitations or conditions(speolfy)
H.The deduction for new manufacturing equipment andior 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:
[]Enhanced Abatement per IC 6-1.1-12.1-1 a
0 Year 1 Q Year 2 0 Year 3 El Year 4 ❑Year 0 Number of years approved:
El Year 6 El Year 7 El Year 8 ❑ Year 9 ❑ Year 10 tater
to nty twenty() CB��years;may not
1. For a Statement of Benefits eppmved anerJune 30,2013,did this designating body adopt an abatement schedule per IC 6-1.1-12.1-177 [(Yes El No
If yes,attache copy of the ebatementscheduie to this form.
If no,the designating body Is required to establish an abatement schedule before the deduction can be determined:
Aieo we have reviewed the Information contained in the statement of benefits end find that the estimates and expectations are reasonable and have
determined that the totality of benefits is sufficient to Justify the deduction daaoribed above,
Approved by:(signature end Ma oreulhol zedmemberofdeal:mating body) Telephone number Date signed(month,day,year)
( ) ----- p s
Printed name or authorized member of designating body Name ordosignaling body
Attested by:(signature and Nile of attester) Printed name of attester
"If the designating body fimils the time period during which an area is an economic revitalization area,that limitation does not Ilmlt the length of lime a
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.
r F
IC 64.142,4-17
Abatement schedules
Sec.17.(a)Adestgnaling body may provide to a business that la established in er relocated to a revitalization area and that receives a deduction under section 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 end personal property,
(2)The number of new full-lime equivalent Jobs created.
(3)The average wage of the new employees compared to the state minimum wage.
(4)Tho infrastructure requirements for the taxpayer's Investment
(b)This subsectionapplies to a statement of benefits approved after June 30,2013.AdesignalIng body shall establish an abatement schedule for each deduction [[
allowed under this chapter.An abatement schedule must specify the percentage amount of the deduction for each year of the deduction.An abatement schedule may
not exceed ten(10)years.
(c)An abatement schedule approved for a particular taxpayer before July 1,2013,remains in effect until the abatement schedule expires under the terms of the
resolution approving the taxpayer's statement of benefits,
Page 2 of 2
(
� 1
4
Filoca ii Clerk's Oif ico
2 South Bend Ethanol LLC
SEI' ��1a 3201 West Calvert Street
iN:(Eff:f1'i!;f-i 136Wi_E n South Bend,IN 46613-1010
CITY CL FHK,SOUJ T I MEND,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.