HomeMy WebLinkAboutBill No. 23-22 Real Property Res._DCI PacketCITY OF SOUTH B
COMMUNITY INVESTMENT
May 3, 2023
Council Member Rachel Tomas Morgan
Chairperson, Community Investment Committee
South Bend Common Council
4th Floor, County -City Building
South Bend, Indiana 46601
Filed in Clerk's Office
MAY 0 3 2023
DAWN M. JONES
CITY CLERK. SOUTH BEND, IN
RE: Declaratory Resolutions: Personal Property and Industrial Development Real Property
Tax Abatement Petition for Verbio North America LLC
Dear Council Member Tomas Morgan:
Please find the enclosed information pertaining to a personal property and industrial
development real property tax abatements petition submitted by Verbio North America LLC, a
Michigan Limited Liability Company. This petition package includes:
• Letter from the petitioner with images and an overview of the project
• Department of Community Investment's summary report
• Petition for abatement
• Statement of Benefits forms (SB-1 / Real Property and SB-1 / PP)
• Supporting information
The report contains the Department's findings relative to the above -mentioned petition. The
petitioner has acquired South Bend Ethanol, LLC, and plans to invest $230 million to modernize
the facility and expand it to produce renewable natural gas that will be injected into the NIPSCO
grid. Verbio North America LLC will retain the 61 employees who currently work at the ethanol
plant and plans to hire eight (8) additional employees in the next year.
The project meets the requirements established by Section 2-84.2 and Sections 2-82 et seq.
and would qualify for a five-year (5) personal property tax abatement and an eight -year (8)
industrial development real property tax abatement. A representative from Verbio North America
LLC will be available to meet with the Committee on Monday, May 8, 2023.
If you or any of the other Council members have questions concerning the report or need
additional information, please feel free to call me at (574) 235-5838.
Sincerely,
Erik Glavich
Director, Growth and Opportunity
EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT
1400S County -City Building 227 W. Jefferson Blvd. South Bend, Indiana 46601 p574.2359371 www.southbendin.gov
BILL NO.23-22
RESOLUTION NO.5019-23
Filed in Clerk's Office
MAY 2023
DAWN M. JONES
CITY CLERK, SOUTH BEND, IN
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, IN 46613
AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF AN
EIGHT -YEAR (8) REAL PROPERTY TAX ABATEMENT FOR
Verbio North America LLC
WHEREAS, a petition for real 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 described as:
Key Number: 71-08-16-400-002.000-026
Commonly Known As: 3201 W. Calvert Street, South Bend, IN 46613
Legal Description: Vac Sunset Pk Se 114 Ex Pt Sold To City S & Adj &
Mid Pt S 112 E Of Rr Cont 61.834 Ac+- Sec 16-37-
2e
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, petitioner has agreed to and has accepted responsibility to report any changes
in the Key Number and legal description to the Department of Community Investment and to the
Office of the City Clerk; 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 seq. 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 1. The Common Council hereby determines and finds that the Petition for Real Property
Tax Abatement and the Statement of Benefits form completed by the Petitioner meet the
requirements of Indiana Code 6-1.1-12.1 et seq. for tax abatement.
SECTION Il. The Common Council hereby determines and finds the following:
A. That the description of the proposed redevelopment or rehabilitation meets the
applicable standards for such development;
B. That the estimate of the value of the redevelopment or rehabilitation is reasonable
for projects of this nature;
C. That the estimate of the number of individuals who will be employed or whose
employment will be retained by the Petitioner can reasonably be expected to result from the
proposed described redevelopment or rehabilitation;
D. That the estimate of the annual salaries of those individuals who will be employed
or whose employment will be retained by the Petitioner can be reasonably expected to result from
the proposed redevelopment or rehabilitation;
E. That the other benefits about which information was requested are benefits that can
be reasonably expected to result from the proposed described redevelopment or rehabilitation; and
F. That the totality of benefits is sufficient to justify the requested deduction, all of
which satisfy the requirements of Indiana Code 6-1.1-12.1-3.
SECTION III. The Common Council hereby determines and finds that the proposed described
redevelopment or rehabilitation can be reasonably expected to yield benefits identified in the
Statement of Benefits, Sections 1 through 3 of the Petition for Real Property Tax Abatement
Consideration, and the Memorandum of Agreement between the Petitioner and the City of South
Bend and that the Statement of Benefits form completed by the petitioner, said form being
prescribed by the State Board of Accounts, is sufficient to justify the deduction granted under
Indiana Code 6-1.1-12.1-3.
SECTION IV. The Common Council hereby accepts the report and recommendation of the
Community Investment Committee that the area herein described be designated as an Economic
Revitalization Area and hereby adopts a Resolution designating this area as an Economic
Revitalization Area for purposes of real property tax abatement.
SECTION V. The designation as an Economic Revitalization Areas shall shall expire on
December 31, 2026.
SECTION VI. The Common Council hereby determines that the property owner is qualified for
and is granted property tax deduction for a period of eight (8) years as shown by the schedule
outlined 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%
Year 6 - 50%
Year 7 - 40%
Year 8 - 30%
SECTION VII. The Common Council directs the City Clerk to cause notice of the adoption of
this Declaratory Resolution for Real Property Tax Abatement to be published pursuant to Indiana
Code 5-3-1 and Indiana Code 6-1.1-12.1-2.5, said publication providing notice of the public
hearing before the Common Council on the proposed confirming of said declaration.
SECTION VIII. This Resolution shall be in full force and effect from and after its adoption by the
Common Council and approval by the Mayor.
Sharon McBride, Council President
South Bend Common Council
Attest:
Dawn M. Jones, City Clerk
Office of the City Clerk
Presented by me, the undersigned Clerk of the City of South Bend, to the Mayor of the
City of South Bend, Indiana, on the day of 2023, at
o'clock M.
.m.
Dawn M. Jones, City Clerk
Office of the City Clerk
Approved and signed by me on the day of
James Mueller, Mayor
City of South Bend
, 2023, at o'clock
Filed in Clerk's Office
t
MAY 0 $i1023
DAWN M. JONES
CITY CLERK. SOUTH BEND, IN
Confidential
VERSIO North America Holdings Corporation,
17199 N Laurel Park Dr. Suite 260. Livonia Ml 48152 USA
Mr. Erik Glavich
Director, Growth and Opportunity
Department of Community Investment
City of South Bend
227 West Jefferson Boulevard
South Bend, IN 46601
RE: South Bend Ethanol LLC
Dear Mr. Glavich,
Aerbio
North America
Greg Northrup
President & CEO
Phone: 866 306 4777 x1300
Mobile: 616 204 1055
greg. north rup@verbio. us
www.verbio.us
April 28, 2023
We are very excited to announce our forthcoming purchase of South Bend Ethanol, LLC from Mecuria,
with closing expected to occur on May 1, 2023. The anticipated support from the City of South Bend
for our redevelopment of the plant as a biorefinery will be a critical factor in our success. Improving the
operating performance of the ethanol production processes and adding the production of renewable
natural gas (RNG) will enhance the plant's sustainability and its economic competitiveness.
We have conducted our due diligence over the past six months and based on our successful
operation of multiple biorefineries, anticipate a smooth transition of over the next several years.
We will continue to operate the ethanol production while we construct the RNG facilities with
expected commissioning projected in 2026.
Attached is a project Fact Sheet for your reivew and use over the next 60 days in support of our
Petition for Real and Personal Tax Abatement (to be filed on 5/1/2023). Please share this
information with members of the city council and other members of the adminstrabion. We look
forward to presenting our plans at the city council meeting scheduled for May 8th. If you or others
members of your team have questions or suggestions, please contact me directly.
Sincerely,
��7 -
cc: Mr. Caleb Bauer, City of South Bend
Mr. Ryan Aguilos, Verbio NA
Verbio
North America
Fact Sheet
VERBIO North America Holdings Corporation ("VNAH") is acquiring South Bend Ethanol, LLC, located at
3201 W Calvert St, South Bend, IN 46613 (see Illustration #1), and subsequently converting this oldest fuel
ethanol plant in the USA into a modern biorefinery. It is anticipated that signing and closing will occur on
May 1, 2023.
The parent company, VERBIO AG, is a publicly traded German corporation and one of Europe's largest
bioenergy and renewable natural gas (RNG) producers. The chosen site offers a competitive location,
infrastructure, and an aging ethanol plant in dire need of investment capital to remain competitive. The
location also meets VERBIO's requirements for access to the natural gas grid, electricity, major highways,
feedstock sources, and water supply.
The site will be developed over the course of approximately 3 years at an estimated total new investment
cost of $230 million. VERBIO will provide all project financing for the acquisition and new construction. Our
projects are self -funded, with no public financing or federal grants having been sought. Construction of
the RNG production facilities will qualify for a Section 48 Investment Tax Credit, as authorized by the
Inflation Reduction Act of 2022, as passed by Congress. To qualify we will pay the prevailing wage rates
and 15 % of the workforce will include apprentices. Hundreds of indirect jobs will be created during the
construction phase and thereafter as part of the ongoing day to day operations.
VNAH will retain the assets of the existing ethanol plant and will seek to improve yields and reduce energy
consumption. Further, VNAH will invest in an anaerobic digestion (biogas) plant with the goal to produce
RNG to be injected into the NIPSCO grid. The investment will also cover additional equipment and
processes necessary to produce value-added by-products, such as liquid fertilizers.
Integration of the ethanol production process with the RNG process will result in higher efficiencies and
improved sustainability. Following commissioning, the plant would be expected to produce at least 85
million gallons per year of corn ethanol and at least 2.8 billion cubic feet (Bcf) per year of RNG.
The plant's primary feedstock each year (approximately 28 million bushels of corn) will be procured locally,
we look forward continuing to work closely with area growers. The current 61 employees at the plant will
all be initially retained, and the target is to hire 8 additional full-time employees overthe next 6 -12 month.
The new targeted positions will include:
• Senior Process Engineer
■ Reliability Engineer
• Process Engineer
• Lab Manager
• Corn Buyer/Merchandizer
■ Logistics Coordinator (2 potentially at some point)
• HR Business Partner
2
• Adminstrative professioal
Additional positions may be added over the next several years following a thorough review of current
operating practices.
As noted above the build out of the plant (see Illustration #2) will include:
• Anaerobic digestion tanks —16 at 2.8 million gallons of capacity each
■ Equipment designed to optimize energy efficiency
• Process equipment designed to upgrade methane gas to pipeline quality natural gas, which
includes the removal of carbon dioxide (CO2), sulphur (HzS) removal and processing and gas
compression.
Flares — high temperature oxidation process equipment designed to ensure operating safety
10 new buildings equalling an estimated 60,000 sq. ft.
• Updated IT operating systems
As a leader in the renewable fuels industry, VERBIO is excited about the opportunity to become the first
renewable energy plant to integrate the production of ethanol with RNG in the state of Indiana. The
biorefinery achieves a 50% or better reduction in energy when compared to a typical ethanol plant
producing dried distiller grains with solubles (DDGS). Further, a substantial amount of RNG is produced
as noted above using the stillage as feedstock rather than as DDGS.
This will be VERBIO's 2"d biorefinery in the USA (after the Nevada, IA location, see Illustration #3) and its
4th globally.
For additional information contact
Greg Northup
President & CEO
Verbio North America Holdings Corp.
greg.northrup@verbio.us
616 204 0155
3
Illustration # 1— South Bend Ethanol
C
Illustration # 2 — Conceptual Buildout, South Bend Ethanol
Illustration # 3 — Verbio Nevada BioRefiney
TAX ABATEMENT REPORT
TO: South Bend Common Council
FROM: Erik Glavich, Director, Growth and Opportunity
SUBJECT: Personal Property and Industrial Development Real Property Tax Abatement
Petition for Verbio North America LLC
DATE: May 3, 2023
On May 1, 2023, a petition for tax abatement from Verbio North America LLC was filed with the
Office of the City Clerk. The petition seeks consideration for a personal property tax abatement
and an industrial development real property tax abatement for property located at 3201 W.
Calvert Street in South Bend.
Pursuant to Chapter 2, Article 6, Section 2-84.9 of the Municipal Code of the City of South
Bend, the 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 Indiana Code 6 1.1-12.1 and 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
VERBIO North America Holdings Corporation, which is closely connected in ownership
to the petitioner (Verbio North America LLC), has purchased South Bend Ethanol, LLC.
The site on West Calvert Street will be developed over the course of approximately three
years at an estimated total investment exceeding $230 million.
• Verbio North America LLC will modernize the facility, improve efficiency of its ethanol
production, and expand its operations to produce renewable natural gas that will be
injected into the NIPSCO grid. The site will become the first renewable energy plant in
the State of Indiana to integrate the production of ethanol with renewable natural gas.
• The petitioner will install $221.5 million dollars of new equipment and software, of which
$215.5 million is eligible for a personal property tax abatement. Equipment includes,
among other items, 16 tanks with capacity of 2.8 million gallons each (totaling about 45
million gallons) and equipment designed to upgrade methane gas to pipeline -quality
natural gas.
• Real property improvements to be made to the property include a minimum of 10 new
buildings totaling 60,000 square feet at an estimated cost of $11.0 million.
• Total private investment is $232.5 million dollars.
Employment Impact
• Verbio North America LLC will retain the 61 employees currently working at the plant.
• Within one year, the petitioner expects to hire at least eight (8) new full-time employees
with an estimated total annual payroll of over $800,000.
• Additional positions may be added over the next several years following a thorough
review of current operating practices.
Tax Estimates
Industrial Development Real Property Tax Abatement: The petitioner qualifies for an eight -year
(8) industrial development real property tax abatement.
• Taxes due in 2023 for the property: $151,014
• Estimated annual taxes after the project's completion: $449,828
• Total estimated taxes during the eight -year (8) abatement period: $3,598,623
o Estimated taxes being abated during the abatement period: $788,392
o Estimated total taxes to be paid during the abatement period: $2,810,232
Personal Prooerty Tax Abatement: The petitioner qualifies for a five-year (5) personal property
tax abatement.
• Total taxes due in 2023 for personal property on the property: $512,429
• Estimated personal property taxes on the new equipment during the five-year (5)
abatement period: $19,268,310
o Estimated taxes being abated during the abatement period: $15,763,423
o Estimated taxes to be paid during the abatement period: $3,504,887
Abatement Qualification
1. A review of the tax abatements previously granted finds that the petitioner has not been
granted or is associated with a previous abatement.
South Bend Ethanol, LLC, was granted a personal property tax abatement in 2018
(Confirming Resolution 4692-18). "Tax Year 2023/Pay 2024" is the final year of that
abatement.
2. The property is properly zoned for the proposed project.
3. Taxes on the property have been paid in full.
2
4. A review of the South Bend Redevelopment designation areas finds that the property is
in the River West Development Area.
5. A review of the Tax Abatement Ordinance No. 9394-03 finds that the petitioner meets
the qualifications for an eight -year (8) industrial development real property tax
abatement under Division 7 (Industrial Development Real Property Tax Abatement),
Section 2-82 (Industrial Development City -Wide General Standards).
6. The petitioner also is eligible for a personal property tax abatement under Division 10
(Personal Property Tax Abatement), Section 2-84.2 (Tangible Personal Property Tax
Abatement).
3
5-Year Abatement May 2, 2023
Verbio North America LLC
South Bend Portage Township
Personal Property Tax Abatement Schedule
Estimated Equipment Cost: $ 215,500,000
Asset Pool: Pool #4 (13 years and longer)
Property Address: 3201 Calvert Street, South Bend, IN 46613
Tax Key Number: 71-08-16400-002.000-026
Year
Year
Year
Year
Year
Assessed Value (AV)
True Tax Value (TTV)
40%
60%
63%
54%
46%
New Base (Equipment Cost x TTV)
86,200,000
129,300,000
135,765,000
116,370,000
99,130,000
Abatement
100%
100%
90%
80%
70%
Abatement Deduction
(86,200,000)
(129,300,000)
(122,188.500)
(93,096,000)
(69.391.000)
Net Assessed Value
13,576,500
23,274,000
29,739,000
Property Taxes
Assume constant tax rate of 5.2897%
Gross Tax (fax Rate x Net AV)
718,156
1,231,125
1,573,104
Debt Service (0.3997% of Net AV)
54,265
93,026
118,867
Local Tax Credit (8.7112% of GT-DS)
-
(57,833)
(99,142)
(126,682)
Circuit Breaker Credit
-
-
Taxes Due
S
S
5 714.589
$ 1,225.009
S 1,565,289
Circuit Breaker Cap
3%
3%
3%
3%
3%
2,586,000
3,879,000
4,072,950
3,491,100
2,973,900
Year
Abatement
New Projected
Tax
Taxes Abated
Net Taxes
Paid
1
100%
$ 2,930,541
$ (2,930,541)
$ -
2
100%
4.395,812
(4,395,812)
-
3
90%
4,615.603
(3,901,014)
714.589
4
80%
3,956,231
(2,731.222)
1.225.009
5
1 70%
1 3.370,123
1,804,833
1,565.289
Years 1-5 Total:
1 19,268.310
1 (15,763.423)1
3,504,887
Years 6-10 Total.
f 10,916,267
1-
I10,916,267
This schedule is for estimation purposes only and assumes constant tax rates equal to those for 2022 Payable 2023
The true tax values will ultimately be determined by the actual assessed valuation and the then current tax rates
gyd Department of Community Investment
City of South Bend
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City of South Bend instructions; Complete pages 1-3
AND the proper Form SB-1 for
the type of abatement (real
Petition for Incentives
property or personal property)
Petition must include a $150 !In a
fl g fee payable to the City Clerk's Office
for which you are apiphylir C.
in l
before processing can be complete p4p
General Information
Project Name VERBIO South Bend Project Nun
lber
�.�._.
Eepil name as registered with
Secretary of State
Verbio North America LLC
Business structure
Limited Liability Company
v r a Will
Company webslte
https://Www.verbio-north-america.com/
Proposed Project Information
CITY CLERK, SOUTH B
Proposed project address
3201 Calvert Street
Parent company name
Verbio North America Holdings Corporation
City, state, Zip
South Bend. IN 46628
legal owner
Verhio North America Holdings Corporation
Site acreage or acreage required
67
Is the real estate owned
Owned
or leased?
Square fee offacifJty
133,100 Sq Ft (multiple buildings)
If leased, by whom?
N/A
Primary Contact Information
Primary company contact name
Greg Northrup
ode
President & CEO
Address of company contact
17199 N. Laurel Park Drive, Suite 260
Phone
(616) 204-0155
Cky'Sgate'Zip
Livonia. MI 48152
Etnali
greg.northrup@verbio.us
Senlor Offidal Information
Company senior ofti name
Rand Dueweke
nt>s
VP & Director of Compliance
Address or campal contact
tlfdifferentfrom above)
Same as above
Phone
(734) 233-5710
City, State, zip
Email
rand.dueweke@verbio.us
Consultant Information/Agent
Hired business consultant%agent name
N/A
consultant release? (Y/N)
Address
local economic development partners
approval? (Y/N)
City, State, zip
pmall
Project Overview
Brief description Oyour
VERSIO North America Holdings carte lion (-VNAH') will acquhe South Bend Elhanl, LLC, located at 3201 W Calvert SI in South Bend and subsequenuy convert this fuel
company, project, and why the
ethanol plant ill a mooern biorefin.ry
property Is necessary for
The parent company, VERBIO AG, is a pull cly traded German corporation and one of Europe s largest bmenergy and renewable nalural gas (RNG) producers. I he chosen site
economic growth
lir
offers a compe.[idve Icarian, in f2slructun,, and an aging ethanol plant in need of investment capital to remain compehhve The location also meets VERSIO's requirements for
tees. ai the natural gas Slid, electric lay, major highways, feedstock sources, ono watersupply
the site would tan dewrngod once, the course of approximately J years at an estimated total cast of $232 5 million VERBIO will provide all project financing for the isect ttion and
— edxfea o _ IiIa pith I ... 6", or federal gaols have been sougld In adtlilion to the existing 133,100 sq B of buildings, an Wail 10, 000 sq 11111, bulldings will be
conoxamclod
VNAH would retain the assets of the existing ethanol Want and will seek Ic Improve yields and reduce energy consumption Further, VNAH would invest in an anaerobic digest on
(biogasl plant with the goal of preduc ng RING to be injected Into the NIPSCO She The investment will also cover additional equtprc, l and processes necessary to produce
value-added by-products, such as liquid fertilizers
Integration of the ethanol production process with the RNG p—,, will resell in IwUher efi cielstand improved sustalnability Fohowing oommles oning. the plant would be
expected to produce at least 85 million gallons per year of com ethanol and at leasl2 B billion cubicfeet (Bel per year of RING
The plant's primary reetlslack each year (approximately 28 million bushels of cam) will be procured locally, which is no change from curt. of ooera'ians The l-rent6l employee. s
'In, plant will all be :nittally retained, and an additional B professional positions will be filled over the next 6.12 morphs Bemuse the RNG investment would be eligible for the
Section 45 Investment Tax Credit (pad of Iha Inflation Rod, then ACI .120226 VNAH would be required le pay all employees prevailing wages and ensure at least 15%of the
w.rdforee is comprlsed of apprentices Hundreds of additional indirect pbs would also be created to supper[ the construct— orojecf and thercafior in supoor[ of day to day
operations
As leader i, the renewable fuels industry. VE 110 Is a dled about the opportunity, to become the first renewable energy plant to mtegrale the production of ethanol with RNG in the
}alp:j lltpll Tn —*W be VFRBIO's 2nd bbrefineryin the I1SA (after the Nevada, IA lot bon) and its 41h globally
Certified Technology Park appropriate
N/A
is line project in a Tax incremental Financing
River West
(i area? If so, which?
have 011Permits been Issued? fY N
N
meet of residentlai units created by
NSA
[Note-Notellglbfe for abalerni l It
project
If this is a pethil fpi personal property tan aNternent, has
the equlpment been installed?
N O
Investment Details
Public infrastructure :ree6s
[Off -site of project In dollars)
Has any 504 funding been
received?
What is the value of any equipment being purchased In
Indlana for the project?
What is the value of any equipment being
purchased from out of state for the project?
0
No
Unknown
Unknown
lice
'ND, IN
New Prn-ect Investments
Calendar Year
Lend Acquisition
Building Lease Payments
Building Purchase Costs
New Building Construction
Existing Building Improvements
New Machinery & Equipment
special Tool i nglR etool i n is
New Furniture/Fixtures
New Computer/IT Hardware
New Software
On -site Rail Infrastructure
On -site Fiber Infrastructure
2022
2023
2024
2025
2026
2027
2028
2029
5 4,000,000 00
a 4 000.000 00
$ 3,000,000 00
3 4.500.000 00
$ 72,000,000 00
$ 72,000,000 n0
5 67.000.000 00
$ 1,000,000 00
$ 1,000,000 00
$ 1,000,000 00
$ 1,000,000 00
$ 1 W0.0000
$ 1,000,000,00
TOTAL
$ 0.00
$ 4.500,000 00
$ 70,000,000 00
8 76 000 000 00
1 $ 72.000 0'
$ 0.00
$0,001
$ o.00
Full -Time Permanent Indiana -Resident Positions by Calendar Year
Calendar Year Jobs retained Hourly Cumulative # of net NEW full time
sveraZr permanent jobs created at project
•nrage, -10
benefits or
bonuses
Hourly average wage, w/o
benefits or bonuses, of
cumulative net new jobs
Total training
expenditure -
not
cumulative
Total # to be
trained - not
cumulative
2023 61 I $ 37.40 8
$ 48.37
69
2024
2025
2026
26
i
2028
2030
0
2032
2033
2034
Provide hourly wage information for new employees in the following positions.
Full time
Parttime
Laborers
$ 23.00
Technical
$ 47,11
Managerial
$ 48.37
Administrative
$ 34.85
Wno will oe the inaiwouai responsiore for coordinating
with WorkOne on recruiting?
Agnes Sabath
Does your company have an EEO hiring policy?
Yes Are you an EEO employer?
Yes
Please list the number of full time and part time minority and/or female
employees for the following years:
Please describe your commitment to
diversity and indusion by detailing your
outreach and recruitment efforts for the last
three years as well as current policies.
Year
2023
2022
2021
Full Time
Part rime
Full Time
Part Time
Full Time
PartTime
Black
Verbio is an Equal
Employment Opportunity
Employer. We hire a
diverse and skilled
workforce in all of our
global locations.
Hispanic
Asian
Indian
Female
Other
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.
Please com
complete the table below with the appropriate
p ppro riate information. ff
you qualify for the points, please enter the full amount of available
points.
Qualify
(Yes or No)
Earned Points
Available Points
1
Construction Related fContractorsl:
A.
Employ Local Companies (75%)
N
0
20
B_
Purchase Materials from Local Companies (75%)
N
0
20
C,
Require Employees vs. Independent Contractors
N
0
19
D.
Require Prevailing Wage (Davis Bacon)
N
0
22
E,
Require Health Benefits
N
0
22
F.
Require Retirement Benefits
N
0
18
G.
Maintain Affirmative Action Plan
N
0
20
Sub -total Construction Related:
0
141
2
Waite & Benefit Related fownerl:
A.
Pay Target Wage Levels
Y
33
33
B.
Provide Health Benefits
Y
34
34
C.
Provide Retirement Benefits
Y
29
29
D.
Provide Training
Y
28
28
E_
Provide Child Care
N
0
15
F.
Provide Transportation Assistance
N
0
14
G.
Provide Employer Assisted Housing program
N
0
9
Sub -total Wage & Benefit Related:
124
162
3
Workforce Related:
A.
Create New Jobs
Y
42
42
B.
Retain Existing Jobs
Y
41
41
C.
Maintain Affirmative Action Plan
N
0
35
D.
Provide Targeted Hiring Preference
N
0
34
Sub -total Workforce Related:
83
152
4
su000rt a Municipal Facility:
A.
Support a 513 Municipal Facility (donations to the
zoo, conservatory, museum, etc.)
Y
84
84
Name of Facility
Sub -total Municipal Facility:
84
84
Ij
Sub -total from Above:
291
539
The undersigned owner(s) of real property, located within the City of South Bend, herby petition the Common Council of the City
of South Bend for a real and/or personal property tax abatement consideration and pursuant to I.C., 6-1.1-12.1-1, et sea., and
South Bend Municipal Code Sec. 2-76 et sea., for this petition state the above.
Submitted By: I Date: 5/1/2023
For Staff Use Only Below This Line
What Is the current assessed value?
Real Property:
y al R�f d Personal Property:
.22 , 11/6 0 970
What Is the projected assessed value?
Real Property:
113. 2-31 y G D Personal Property:
Q G • / /CIt/ O 170
1107,660
What is the tax key number for this project?
- 0 8 _/ 4 — y'l a 00 Z . 000 0 Z `
What Is the six digit NAILS code?
3 Z 515 3
Please attach a Google map and street view of the location.
Please Ilst the amount of real and personal property taxes
paid for the last five years when applicable.
Real Property Taxes:
Personal Property Taxes:
ve�rOne
512-, 9.2a ay
Year Two
L.�j( . 1p�n!`• Spa
b'7
q3 r 177.7 ir
/•
7A///
Year Three ZO Z 40
ICI . 1
�/
t S']9
0
Year Four Z Q %p1
Q0
lrr�rl
7• m O
q0
0
Year Five ZO d
�77
15 3, / 0
Please fill out the following Public Benefit Summary Information and add to total from above.
y or N
PR!=
Poltlts
Public Benefit Item:
PM[ed Related:
5
A.
Redevelop a Site that has Special Needs
ti
49
B.
Develop Based on Local University Research
35
C.
Achieve a Physical Element of a Plan
36
Sub -total Project Related:
�'
120
6
Su ner Size Proiects (point values are cumulativel_
125
25
A.
100%to 199%
B.
200%to299%
V
68
C.
300% to 399%
V
(/ S
65
D.
400%and Over
�v
52
Sub -total Super Size Projects:
210
7 Pay for Municipal Infrastructure:
A. Pay for Oversizing or Upgrading
B. Pay for 26-50% of Extension Cost
C. Pay for 51-75% of Extension Cost
D. Pay for 76-100% of Extension Cost
Sub-totalInfrastrucWre Related:
14
26
39
52
131
Total from Applicant section:
291
539
Total from Staff Section:
461
Total Public Benefit Points:
1000
STATEMENT OF BENEFITS
-`� REAL ESTATE IMPROVEMENTS
State Form 61767 (R711-21)
r Prescribed by the Department of Local Government Finance
This statement is being campfeted for real property that qualifies under the following Indiana Code (check one box):
❑� Redevelopment or rehabilitation of real estate improvements (IC 6-1.1-12.1-4)
❑ Residentially distressed area (IC 5-1.1-12.1-4.1)
20 23 PAY 20 24
FORM SB-1 / Real Property
PRIVACY NOTICE
Any information concerning the cost
of the property and specific salaries
paid to individual employees by the
IC ertl owner is confidential per
IC 6-1.1-12.1-5 1.
INSTRUCTIONS:
I. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
information from the applicant in making its decision about whether to designate an Economic Revitalization Area. Otherwise, this statement must be
submitted to the designating body BEFORE the redevelopment or rehabilitation of real property for which the person wishes to claim a deduction.
2. The statement of benefits form must be submitted to the designating body and the area designated an economic revitalization area before the initiation of
the redevelopment or rehabilitation for which the person desires to claim a deduction
3. To obtain a deduction, a Form 322/RE must be filed with the county auditor before May 10 in the year in which the addition to assessed valuation is
made or not later than thirty (30) days after the assessment notice is mailed to the property owner if it was mailed after April 10. A property owner who
failed to file a deduction application within the prescribed deadline may file an application between January 1 and May 10 of a subsequent year.
4 A property owner who files for the deduction must provide the county auditor and designating body with a Form CF-I/Real Property. The Form CF-1/Real
Property should be attached to the Form 3221RE when the deduction is first claimed and then updated annually for each year the deduction is applicable
IC 6-1.1-12 1-5.1(b)
5. For a Form SB-1/Real Property that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each
deduction allowed. For a Form SS-1/Real Property 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•- •
Name of taxpayer Verbio South Bend
Address of taxpayer
Number and Street: 3201 W. Calvert Street city: South Bend Stare: IN zip: 46613
Name c' cantac! person Telephone number
First .Om Ryan Last Name: Aguilos (908) 692-6221
E-mail address
ryan.aguilos@verbio.us
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Common Council of the City of South Bend
Resolution number
Location of property County
Number and Street: 3201 W. Calvert Street City: South Bend SLuL,: IN 71E 4662s St. Joseph
DLGF taxing district number
026 (South Bend -Portage)
Deswpt on of real ptuperty imprcivements, redevelopment- or r_hatnittation fuse additional sheets rfnacessaryr
Estimated start date (month, day, year)
VERBIO North America Holdings Corporation ("VNAH") is acquiring the property and subsequently
511/2023
converting this fuel ethanol plant into a moder biorefinery. The site would be developed over the
Estimated completion date (month, day, yW
course of approximately 3 years at an estimated total cost of $285 million.
1 12/31/2025
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current Number 1 i Salaries 1 00 r 000 I Number Retained 1 ( Salaries 1 00, 000 Number Additional Salaries 00,000
SECTION 4 ESTIMATED TOTAL COSTAND VALUE OF PROPOSED PROJECT
REAL ESTATE IMPROVEMENTS
COST ASSESSED VALUE
Current values
$ 4,025,200 $ 4,025,200
Plus estimated values of proposed project
$ 11,000,000 $ 8,800,000
Less values of any property being replaced
$ 0 $ 0
Net estimated values upon completion of vqp eft $ 15,025,200 $ 12,825,200
SECTION 5 WASTE CONVERTED AND OTHER BENEFITS PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds) 0 Estimated hazardous waste converted (pounds) 0
Other benefits
VNAH would invest in an anaerobic digestion (biogas) plant with the goal of producing RNG to be
injected into the NIPSCO grid. The investment will also cover additional equipment and processes
necessary to produce value-added by-products, such as liquid fertilizers. VNAH would also invest
in its workforce, creating hundreds of additional jobs for the locale and assuring that 15% of the
workforce is comprised of apprentices and thereafter in support of day to day operation.
SECTION 6 TAXPAYER CERTIFICATION
I hereby certify that the representations in this statement are true.
Signature of authorized representative J Date signed (month, day. year)
6
5/1 /2023
Printed name of authorized representative _ Ttle
Greg Northrup President & CEO
Page 1 of 2
FOR USE OF :a■
We find that the applicant meets the general standards in the resolution adopted or to be adopted by this body. Said resolution, passed or to be passed
under IC 6-1.1-12.1, provides for the following limitations:
A. The designated area has been limited to a period of time not to exceed calendar years* (see below). The date this designation
expires is . !VOTE. This question addresses whether the resolution contains an expiration date for the designated area.
B. The type of deduction that is allowed in the designated area is limited to:
1. Redevelopment or rehabilitation of real estate improvements El Yes ❑No
2. Residentially distressed areas ❑ Yes ❑No
C. The amount of the deduction applicable is limited to $
D, Other limitations or conditions (specify)
E. Number of years allowed ❑ Year 1 ❑ Year 2 ❑ Year 3 ❑ Year 4 ❑ Year 5 (' see below)
❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9 ❑ Year 10
F. For a statement of benefits approved after June 30, 2013. did this designating body adopt an abatement schedule per IC 6-1.1-12.1-17?
❑ Yes ❑ No
If yes, attach a copy of the abatement schedule to this form.
If no, the designating body is required to establish an abatement schedule before the deduction can be determined.
We have also reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have
determined that the totality of benefits is sufficient to justify the deduction described above.
Approved (signature and hVe of authorized member of designating body)
Telephone number Date signed ('month, day year)
Printed name of authorized member of designating body
Name of designating body
Attested by (signature and title of attester)
Printed name of attester
If the designating body limits the time period during which an area is an economic revitalization area, that limitation does not limit the length of time 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.
A. For residentially distressed areas where the Form SB-1/Real Property was approved prior to July 1, 2013. the deductions established in IC
6-1.1-12.1-4.1 remain in effect. The deduction period may not exceed five (5) years. For a Form S13-1 /Real Property that is approved after June 30,
2013, the designating body is required to establish an abatement schedule for each deduction allowed. Except as provided in IC 6-1.1-12.1-18, the
deduction period may not exceed ten (1 D) years. (See IC 6-1.1-12.1-17 below.)
B. For the redevelopment or rehabilitation of real property where the Form S13-1/Real Property was approved prior to July 1, 2013, the abatement
schedule approved by the designating body remains in effect. For a Form S13-1/Real Property that is approved after June 30, 2013, the designating
body is required to establish an abatement schedule for each deduction allowed. (See IC 6-1.1-12.1-17 below.)
IC 5-1.1-12.1-17
Abatement schedules
Sec. 17. (a) A designating body may provide to a business that is established in or 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 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) The infrastructure requirements for the taxpayer's investment.
(b) This subsection applies to a statement of benefits approved after June 3D, 2013. A designating 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. Except as provided in IC 6-1,1-12.1-18.. 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
• '�ry.a
STATEMENT OF BENEFITS
i
PERSONAL PROPERTY
State Form 51764 (R5 / 1-21)
Prescribed by the Department of Local Government Finance
INSTRUCTIONS
FORM SBA / PP
PRIVACY NOTICE
Any information concerning the cost
of the property and spedfic salaries paid
to individual employees yy the property
owner is conridential per IC 6-1.1-12 1-5 1.
I. This statement must be submitted to the body designating the Economic Revitalization Area prior to the public hearing if the designating body requires
information from the applicant in making its decision about whether to designate an 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, 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 the designating body and the area designated an 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 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 be filed between January 1 and 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 form between January 1 and the extended due date of that year.
4- Property owners whose Statement of Benefits was approved, must submit Form CF-I/PP annually to show compliance with the Statement of Benefits.
(IC 6-1,1-12.1-5.6)
5, Fora Form SB-1/PP that is approved after June 30, 2013, the designating body is required to establish an abatement schedule for each deduction allowed.
For a Form SB-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•- •
Name of taxpayerNameSouth Bend Name of contact person
v Ryan Aguilos
Fast amc: LaalNamc:
Address of taxpayer Telephone number F,mail
.umberaa.t9,rect: 3201 W. Calvert Street City: South Bend IN
state: zct':46628 (908) 692-6221 ryanaguilos@verbious
SECTION 2 LOCATION AND DESCRIPTION OF PROPOSED PROJECT
Name of designating body
Resolution number (s)
Common Council of the City of South Bend
Location of property
3201 W. Calvert Street South Bend 46628
IN
County
DLGF taxing district number
Cumber and st,.eec: Cary, State: 7.iP:
St. Joseph p
026 (South Bend -Portage)
Description of manufacturing equipment and/or research and development equipment
ESTIMATED
and/or logistical distribution equipment and/or information technology equipment.
START DATE
COMPLETION DATE
(Use additional sheets if necessary)
Manufacturing Equlprrtent
5/1/2023
12/31/2023
R & D Equipment
Logist Dist Equipment
IT Equipment
5/1/2023
12/31/2023
SECTION 3 ESTIMATE OF EMPLOYEES AND SALARIES AS RESULT OF PROPOSED PROJECT
Current Number Salaries Number Retained Salares Number Additional Salaries
$ 61 $ 100,000 61 $100,000 8 $ 100,00o
SECTION 4 ESTIMATED TOTAL COST AND VALUE OF PROPOSED PROJECT
NOTE: Pursuant to IC 6-1,1-12-1-5-1 (d) (2) the MANUFACTURING R & D EQUIPMENT LOGIST DIST IT EQUIPMENT
EQUIPMENT I € UIPMENT
COST of the property is confidential. COST COST COST ASSESSED ASSESSED ASSESSED ASSESSED
COST
VALUE VALUE VALUE VALUE
Current values
$ 52,500,000
Plus estimated values of proposed project
$ 226,500,0oo
$ 6,000,000
Less values of any property being replaced
r
Net estimated values upon Completion of project
1 $ 279,000,000
$ 0
so so $ 0 $ 0 $ 6,000,000
so
SECTION• ■ AND OTHER BENEFITS
PROMISED BY THE TAXPAYER
Estimated solid waste converted (pounds) 0
Estimated hazardous waste converted (pounds) 0
Other benefits:
VNAH would invest in an anaerobic digestion (biogas) plant with the goal of producing RNG to be injected into the NIPSCO grid- The investment will also cover additional equipment and processes
necessary to produce value-added by-products, such as liquid fertilizers- VNAH would also invest in its workforce, creating hundreds of additional jobs for the locale and assuring [hat 15 % or the workforce is
comprised of apprentices
SECTION•
I hereby r enify that the representations in this statement are true
Signature of authorized representativeY'"f�1 �,
Date signed (monlh, day, year)
5/1/2023
Printed name of authorized representative
Title
Greg Northrup
President & CEO
Page 1 of 2
We have reviewed our prior actions relating to the designation of this economic revitalization area an I findPj**i4picAe1W& nera! slandards
adopted in the resolution previously approved by this body. Said resolution, passed under IC 6-1 1-12.1-2.. My ing Irrn atrcns as
authorized under IC 6-1.1-12.1-2. r
A. The designated area has been limited to a period of time not to exceed calendar y rs x (see bOAY) Ohl db44is d srgnati n expires
Is NOTE: This question addresses whether the resAhft contain an. expiration date forth design fed area
B, The type of deduction that is allowed in the designated area is limited to:
C DAWN
S i°I"� 13ENv, IN
1 . Installation of new manufacturing equipment; ❑ Yes ❑ 12.1-18
2 - Installation of new research and development equipment, ❑ Yes ❑ N o Check box if an enhanced abatement was
3 . Installation of new logistical distribution equipment_ ❑ Yes ❑ N o approved for one or more of these types-
4 . Installation of new information technology equipment; ❑ 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 may be filled out 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 desired)
E. The amount of deduction applicable to new logistical distribution equipment is limited to $
$ (One or both lines may be filled out to establish a limit, if desired.)
cost with an assessed value of
F. The amount of deduction applicable to new information technology equipment is limited to $ cost with an assessed value of
$ . (One or both lines may be filled out to establish a limit, if desired.)
G. 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:
❑ Year 1 ❑ Year 2 ❑ Year 3 ❑ Year 4
❑ Year 6 ❑ Year 7 ❑ Year 8 ❑ Year 9
❑ Year 5 ❑ Enhanced Abatement per IC 6-1.1-12.1-18
Number of years approved:
❑ Year 10 {Ervterone to twenty (1-M years, may not
exceed twenty (20) years)
I. For a Statement of Benefits approved after June 30, 2013, did this designating body adopt an abatement schedule per IC 6-1.1-12.1-177 ❑Yes ❑No
If yes, attach a copy of the abatement schedule to this form.
If no, the designating body is required to establish an abatement schedule before the deduction can be determined.
Also we have reviewed the information contained in the statement of benefits and find that the estimates and expectations are reasonable and have
determined that the totality of benefits is sufficient to justify the deduction described above.
Approved by: (signature and title of authorized member ofdesignating body) Telephone number Date signed (month, day, year)
Printed name of authorized member of designating body Name of designating body
Attested by: (signature and title of attester) j Printed name of attester
" If the designating body limits the time period during which an area is an economic revitalization area, that limitation does not limit the length of time 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.
IC 6-1.1-12.1-17
Abatement schedules
Sec. 17. (a) A designating body may provide to a business that is established in or 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 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) The infrastructure requirements for the taxpayer's investment.
(b)This subsection applies to a statement of benefits approved after June 30, 2013. A designating body shall n le
for each deduction allowed under this chapter. An abatement schedule must specify the percentage amou of t r y r f the
deduction. Except as provided in IC 6-1.1-12.1-18, an abatement schedule may not exceed ten (10) years.I���5 ��
(c) An abatement schedule approved for a particular taxpayer before July 1, 2013, remains in effect until the a atemen s e c c
the terms of the resolution approving the taxpayer's statement of benefits_
MAY 012023
DAWN M. JONES
CITY Page 2 of 2 CLERK, SOUTH BEND, IN
Aerial Views
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View Looking Northwest from West Calvert Street
View Looking North from West Calvert Street
View Looking Northeast from West Calvert Street