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RESOLUTION NO. � "-'-5 3
A RESOLUTION APPROVING AN APPLICATION FOR
PERSONAL PROPERTY TAX DEDUCTION
WHEREAS, I.C. 6 -1.1- 12.1 -2(1) provides that an application for property tax deduction may
not be approved when the property is located in an allocation area as defined in I.C. 36- 7- 14 -39,
unless the Redevelopment Commission which designated that allocation area adopts a resolution
approving that application; and
WHEREAS, the South Bend Common Council has received a petition for (5) five years of
personal property tax abatement consideration from Federal- Mogul Powertrain, Inc. for personal
property located at 3605 West Cleveland Road in the Airport Economic Development Area, the legal
description of which is attached hereto, marked Exhibit "A" and incorporated herein; and
WHEREAS, this Commission declared the Airport Economic Development Area by
Resolution No. 919, adopted February 23, 1990, and in the same resolution declared the Airport
Economic Development Allocation Area, Allocation Area No. 1; and
WHEREAS, the property located at 3605 West Cleveland Road is located within the Airport
Economic Development Allocation Area, Allocation Area No. 1.
NOW, THEREFORE, BE IT RESOLVED by the South Bend Redevelopment Commission
as follows:
1) The Commission finds that the application from Federal- Mogul Powertrain, Inc. for (5)
five years of personal property tax abatement consideration for property located at 3605 West
Cleveland Road in the Airport Economic Development Allocation Area, Allocation Area No. 1,
should be and is hereby approved.
2) That a copy of this resolution be forwarded to the South Bend Common Council to
indicate the Commission's approval of the petition for personal property tax abatement for Federal -
Mogul Powertrain, Inc.
Approved this 8th day of May, 2012, at the regularly scheduled meeting of the South Bend
Redevelopment Commission.
SOUTH BEND REDEVELOPMENT COMMISSION
ATTEST:
EXHIBIT A
LEGAL DESCRIPTION
FEDERAL- MOGUL POWERTRAIN, INC.
Description:
A tract of land in part of the East half of Section 21, Township 38 North, Range 2
East, 2nd P.M., St. Joseph County, Indiana, and more particularly described as
follows: Beginning at a point on the East -West Half section line of said East Half
North 88 degrees 53 minutes 36 second East 915.58 feet from the center of said
Section 21; thence North 0 degrees 56 minutes 57 seconds West 338.80 feet; thence
North 88 degrees 53 minutes 36 seconds East, parallel with the East -West half
section line of said Section, 800.00 feet; thence South 0 degrees 56 minutes 57
seconds East 1726.13 feet; thence northwesterly 550.14 feet along an are to the right
having a radius of 4463.66 feet and subtended by a long chord having a bearing of
North 54 degrees 36 minutes 59 seconds West and a distance of 549.80 feet; thence
North 51 degrees 05 minutes 08 seconds West 465.22 feet; thence North 0 degrees 56
minutes 57 seconds West 761.20 feet to the East -West half section line of said East
half the point of beginning, and containing 26.203 acres, more or less.
Tax Key No.:
25- 1013 -0218
Address:
3605 West Cleveland Road
South Bend, IN 46628
I200 COUNTY -CITY BuR.DING
2.27 W JEFFERSON BOULEVARD
SOUTH BFND, INDIANA 466oi -1830
PHONE 574/ 23 5 -9371
FAX 574/235-9021
CITY OF SOUTH BEND PETE BUTTIGIEG, MAYOR
COMMUNITY & ECONOMIC DEVELOPMENT
TAX ABATEMENT REPORT
TO: SOUTH BEND REDEVELOPMENT COMMISSION
FROM: KATHY HAHN
SUBJECT: PERSONAL PROPERTY TAX ABATEMENT PETITION FOR:
FEDERAL- MOGUL POWERTRAIN, INC.
DATE: May 1, 2012
On April 30, 2012 a petition for personal property tax abatement consideration for property located at
3605 West Cleveland Road was filed with the City Clerk by Federal- Mogul Powertrain, Inc. 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 and Economic Development 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 and Economic Development has reviewed the petition, investigated the
area, and makes the following report.
PROJECT SUMMARY
Federal- Mogul Powertrain, Inc. is a manufacturer of automotive pistons. Customers include most of the
major foreign and domestic automotive manufacturers. Operations in South Bend began in 1987. Federal -
Mogul, Inc. has maintained employment levels consistently between 300 and 400 full time positions with
total salaries between $18 million and $20 million. Total gross sales generated from the South Bend
facility averaged $82 million over the past five years. Approval of this application will allow for continued
capital investment in the South Bend facility. Without additional investment and greater production
efficiencies offered by newer processes and new product lines, more than 70% of the existing production
would likely be shifted outside of Indiana- most likely to another country. The project will invest
$18,340,000 in new manufacturing equipment including: 1) a Gen V 5.31, Piston Line ; 2) a Gen V
4.3L/6.2L Piston Line; 3) a LKW 2.5 L Piston Line; and 4) an aluminum bulk metal furnace.
Additionally, they will install a new R & D prototype lab costing $3,462,000. The total project cost is
COMMUNITY DEVELOPMENT ECONOMIC DEVELOPMENT
PAMELA C. MEYER DONALD E. INKS
574 %235 -966D 574 %235-9371
FAX: 574/235-9469
South Bend Redevelopment Commission
RE: Tax Abatement Federal- Mogul Powertrain, Inc.
May 1, 2012
Page 2
$21,802,000. Total taxes to be abated during the (5) five -year abatement period are estimated at
$215,239. Total new taxes to be paid over five years are $1,898,562. Combined existing and new taxes
will be $6,310,349 over five years.
EMPLOYMENT IMPACT
Per the petition, it is estimated that the total project will create twenty (20) new, permanent, full -time jobs
within the first year, representing a new annual payroll of $932,000. The project will maintain 409
existing, permanent full -time jobs representing an annual payroll of $20,503,000.
ABATEMENT QUALIFICATION
A review of the tax abatements previously granted, finds that the petitioner has been granted or
associated with 15 (fifteen) previous tax abatements:
Term/Type
Resolution No.
Date
5 -year personal property
3641 -06
07/28/2006
5 -year personal property
3397 -04
10/28/2004
5 -year personal property
3232 -03
08/25/2003
5 -year personal property
3086 -02
04/22/2002
3 -year real property
3085 -02
04/22/2002
10 -year real property
2929 -00
09/25//2000
5 -year personal property
2930 -00
09/25/2000
6 -year real property
2686 -98
10/26/1998
5 -year personal property
2685 -98
10/26/1998
5 -year personal property
2174 -94
09/26/1994
5 -year personal property
2057 -93
07/26/1993
10 -year personal property
2056 -93
07/26/1993
5 -year personal property
1864 -91
04/22/1991
5 -year personal property
#R07 -86
05/13/1986
10 -year real property
#R07 -86
05/13/1986
2. The Building Commissioner 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 Airport Economic Development Area, which is a Tax Incremental Allocation Area; therefore,
the petition for personal property tax deduction must first be approved by the South Bend
Redevelopment Commission.
4. A review of the Tax Abatement Ordinance No. 9394 -033 finds that the petitioner meets the
qualifications for a (5) five -year personal property tax abatement under section 2 -84.2, Tangible
Personal Property Tax Abatement.
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