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HomeMy WebLinkAbout25-43 Modifying and Reconfirming Resolution - Real Property Tax Abatement for Verbio North America LLC at 3201 West Calvert Street 'TN 84 1 CITY OF SOUTH BEND 1- ��', PEA1 F. !r '° ' .-�kt/ COMMUNITY INVESTMENT October 22, 2025 Filed in Clerk's Office Council Member Troy Warner Chairperson, Community Investment Committee Oct 22, 2025 South Bend Common Council do South Bend CityHall, 3rd Floor Bianca South aB City Clerk, Bend, (1V South Bend, Indiana 46601 RE: Reconfirming Resolutions (2): Personal and Real Property Tax Abatements for Verbio North America LLC Dear Council Member Warner, Please find enclosed two resolutions that would reconfirm the personal property and real property tax abatements for Verbio North America LLC (the "Petitioner"). These tax abatements were granted by the Common Council in 2023 in support of the Petitioner's project to modernize the ethanol production facility at 3201 W. Calvert Street. The total private investment for this project will exceed $230 million. On June 12, 2023, the Common Council adopted Confirming Resolution 5025-23 to grant a five- year(5) personal property tax abatement and Confirming Resolution 5026-23 to grant an eight- year (8) real property tax abatement. For both of these tax abatements, the designation periods will expire on December 31, 2026. On October 14, 2025, the Department of Community Investment received the attached formal request from the Petitioner to extend the designation periods. The project has been delayed for reasons outside of the control of the Petitioner: the project require federal approvals, and those approvals are delayed due to the federal agencies' failures to issue guidance in a timely manner. The Petitioner anticipates receiving the necessary approvals in 2027 or 2028. The designation periods must be extended in order for the project to receive the benefits of tax abatement as the Common Council intended when it passed the respective Confirming Resolutions on June 12, 2023. Adoption by the Common Council of these new reconfirming resolutions would extend the designation periods and help ensure the success of the project. A representative from Verbio North America LLC will be available to meet with the Committee on October 27, 2025. If you or any of the other Council members have questions or need additional information, please feel free to call me at (574) 235-5838. Sincerely, ,,,/ )),z6.,, / ., Erik Glavich Director, Growth and Opportunity EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT South Bend City Hall,Suite 500 215 S.Martin Luther King Jr Blvd South Bend,IN 46601 p 574 235 9371 www.southbendin gov Pioneering green solutions ferbio Greg Northrup President&CEO Phone. 866 306 4777 x1300 Mobile: 616 204 1055 VERBIO North America,LLC greg.northrup©verbio.us 9 West Broad Street.Suite 400,Stamford CT 06902,USA www.verbio.us October 14,2025 Mr. Erik Glavich Director,Growth&Opportunity City of South Bend 227 West Jefferson Blvd. South Bend,Indiana 46601 RE:Tax Abatement Extension Request Dear Erik, As we have discussed informally Verbio would like to request an extension of our tax abatements,personal and real,from 12/31/2026 to 12/31/2030. I would be available formally to make this request of the city at meeting of October 27,2025. Here is a statement that outlines the reasons for our request. "Verbio North America remains optimistic about the long-term prospects of the renewable fuels market. In the near term,the company is taking strategic steps to align its investment decisions with the need for certainty in the regulatory processes,following the passage of the budget on July 3'd and signed in law on July 4tk. The company's advanced technology production processes require approval from the Department of Energy(DOE), which, in turn,depends on guidelines issued by the Internal Revenue Service(IRS)scheduled for publication in May 2026. Considering the procedural steps required,these approvals are likely to be delayed until 2027 or early 2028. Given this understanding,the company is adjusting its construction timelines for all new capital investments to align with this assessment. We will continue to monitor ongoing developments and, where appropriate,modify or amend our production and construction schedules to meet the financial expectations of our investors." Let me know if you need additional information. Sinc erely,, rrtth / 2 President&CEO Filed in Clerk's Office Oct 22, 2025 BILL NO. 25-43 Bianca Tirado RESOLUTION NO. City Clerk, South Bend, IN A RESOLUTION MODIFYING AND RECONFIRMING THE ADOPTION OF DECLARATORY RESOLUTION NO. 5019-23 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 AN EIGHT-YEAR (8) REAL PROPERTY TAX ABATEMENT FOR Verbio North America LLC WHEREAS, the Common Council of the City of South Bend, Indiana, has adopted a Declaratory Resolution designating certain areas within the City as an Economic Revitalization Area for the purpose of tax abatement consideration; and WHEREAS,Declaratory Resolution No. 5019-23 designated 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 1/4 Ex Pt Sold To City S&Adj & Mid Pt S 1/2 E Of Rr Cont 61.834 Ac+- Sec 16-37- 2e 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, upon proper notice, a public hearing was held, after which the Common Council issued Confirming Resolution No. 5026-23 on June 12, 2023, confirming the adoption of Declaratory Resolution No. 5019-23; and WHEREAS, Verbio North America LLC, a Foreign Limited Liability Company, was granted a designation period which expires on December 31,2026, in Confirming Resolution No. 5026-23; and WHEREAS, Verbio North America LLC has begun a project to modernize the real property located at the area designated, through the adoption of Declaratory Resolution No. 5019- 23 and confirmed through the adoption of Confirming Resolution No. 5026-23, as an Economic Revitalization Area for the purpose of tax abatement consideration; and WHEREAS, the modernization project, upon completion, will employ proprietary technology and processes that will be eligible for federal tax credits that incentivize the development and implementation of technologies for renewable energy;and WHEREAS, Verbio North America LLC's advanced technology processes require approval from the federal Department of Energy; and WHEREAS, the Department of Energy's approval depends on guidelines to be issued by the Internal Revenue Service at a date expected to be no sooner than May 2026; and WHEREAS, following the publication of guidelines by the Internal Revenue Service, the Department of Energy's approval for Verbio North America LLC would be issued approximately one year later; and WHEREAS, because of delays in the issuance of guidelines by the Internal Revenue Service, Verbio North America LLC's project has been delayed and full construction of the real property improvements cannot begin until Verbio North America LLC has received the necessary federal approvals; and WHEREAS, because of these delays, which are outside the control of Verbio North America LLC, the Petitioner has requested to extend the designation period confirmed by Confirming Resolution No. 5026-23; and WHEREAS, the Common Council desires to reconfirm the designation of a certain area designated by Declaratory Resolution No. 5019-23 and confirmed by Confirming Resolution No. 5026-23 as an Economic Revitalization Area for purposes of an eight-year (8) real property tax abatement; and NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of South Bend, Indiana,as follows: SECTION I. The Common Council hereby reconfirms Declaratory Resolution No. 5019-23 and Confirming Resolution No. 5026-23 designating as an Economic Revitalization Area for purposes of an eight-year(8)real property tax abatement 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 1/4 Ex Pt Sold To City S& Adj & Mid Pt S 1/2 E Of Rr Cont 61.834 Ac+- Sec 16-37- 2e SECTION II. The designation as an Economic Revitalization Area for purposes of an eight-year (8) real property tax abatement expires on December 31, 2030. SECTION III. The Common Council hereby determines that the Petitioner is qualified and is granted property tax deduction for a period of eight(8)years as shown in Section VI of Declaratory Resolution No. 5019-23 and further determines that the petition, the Statement of Benefits, and the Memorandum of Agreement between the Petitioner and the City of South Bend comply with Chapter 2,Article 6, of the Municipal Code of the City of South Bend and Indiana Code 6-1.1-1 2 et seq. SECTION IV. This Resolution shall be in full force and effect from and after its adoption by the Common Council and approved by the Mayor. Canneth J. Lee, Council President South Bend Common Council Attest: Bianca L. Tirado, 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 ,2025, at o'clock .m. Bianca L. Tirado,City Clerk Office of the City Clerk Approved and signed by me on the day of , 2025,at o'clock .m. James Mueller, Mayor City of South Bend, Indiana