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HomeMy WebLinkAbout08-10-2026 Community Investment Committee Minutes (signed)OFFICE OF THE CITY CLERK BIANCA L. T'I RADO, CITY CLERK COMMUNITY INVESTMENT Committee Members Present: Committee Members Absent: Other Council Present: Others Present: Presenters: Agenda: AUGUST 10, 2026, 3:45 P.M. Sherry Bolden-Simpson*, Kevin Upton, Ophelia Gooden-Rodgers, Karen L. White Sheila Niezgodski, Tom Gryp Dr. Oliver Davis, Canneth Lee, Sharon McBride* Bianca L. Tirado, Matthew Neal, Jasmine Jackson, Lari'onna Green, Veronica Pitt- Payne, Bob Palmer Erik Glavich, Allen Sullivan, Ethan Fowler Bill No. 26-22 -Declaratory Resolution - Personal Property Tax Abatement for Tenneco Inc. Bill No. 26-23 -Declaratory Resolution - Real Property Tax Abatement for GLC Mid- Bay, LLC Members marked with an asterisk(*) are in virtual attendance via Microsoft Teams. Please note the attached link for the meeting recording: https://docs.southbendin.gov/WebLink/browse.aspx?dbid=0&mediaid=412049 Committee Chair Karen L. White called to order the Community Investment Committee meeting at 3:45 P.M. Bill No. 26-22 -Declaratory Resolution -Personal Property Tax Abatement for Tenneco Inc. Committee Chair White briefly explained the two (2)-step legislative process for tax abatements. Jasmine Jackson Q-rrEF D EPUfY OTY 0.ERK / Q-rrEF OF STAFF INTEGRITY I SERVICE I ACC ESSIBILITY Matthew Neal D EPUfY OTY 0.ERK I DIRECTOR OF P OLICY Veronica Pill-Payne D IRECTOR OF SPEGAL PROJECTS EXC ELLENCE I ACCO UNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall I215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.91731 www.southbendin.gov CITY OF SOUTH BEND I OFFICE OF THE CITY CLERK Erik Glavich, Director of Growth and Opportunity, with offices on the fifth (5th) floor of City Hall , South Bend, IN 46601, presented the bill. He stated that Tenneco, Inc. is an auto supplier with over one hundred (100) employees at their facility on Cleveland Road. He said this facility has been a source of high-paying jobs in the City's manufacturing sector since 1987. He explained that they are now expanding their manufacturing capabilities with an eight-point-five-million- dollar ($8,500,000) investment in new equipment. They are seeking a five (5)-year personal property tax abatement with a commitment to bring eighty (80) new jobs to the City. He shared tax estimates projecting that Tenneco would pay one-hundred-seventy-thousand dollars ($170,000) in new taxes over the five (5)-year term, with four-hundred-fifty-thousand dollars ($450,000) abated. Allen Sullivan, Tenneco Inc., 3601 West Cleveland Road, South Bend, IN 46628, explained that the new equipment will allow Tenneco to move into the market of manufacturing large-scale commercial emissions control systems. He said they will need a large number of new employees to build these eight (8)-foot by six (6)-foot by twelve-point-five (12.5)-foot units and meet their customer demand. He explained that their Cleveland Road facility was chosen for this investment due to its large size and central location. Citizen Member Kevin Upton asked about Apollo Global Group's recent acquisition of Tenneco and the resulting layoffs. Allen Sullivan confirmed that Apollo owns Tenneco and has closed or consolidated business units due to the shifting needs of the automotive industry. Citizen Member Upton noted that Apollo is a private equity firm with a business interest in cutting costs and reselling companies. He asked if Tenneco employees who were previously laid off will be given priority for the new jobs. Allen Sullivan noted that Tenneco underwent significant restructuring in 2020 before the Apollo acquisition in 2022. He said several employees have since come back and they have maintained a turnover rate ofless than four percent (4%). Citizen Member Upton expressed concern regarding the future of private equity firms. Allen Sullivan stated that he may personally agree on that issue, but he is representing Tenneco. Committee Vice Chair Ophelia Gooden-Rodgers asked if the employees who returned were called back from the layoff or rehired. Allen Sullivan explained that there was a two (2) year hiring freeze following the 2020 layoffs, and layoff recall rights were expired when hiring resumed. He said employees who came back either started over or were bridged, depending on the individual circumstances. Committee Vice Chair Gooden-Rodgers asked if the tax abatement would make the company stronger. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall I 215 S. Or. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 1 f. 574.235.9173 1 www.southbendin.gov CITY OF SOUTH BEND I OFFICE OF THE CTT--Y CLERK Allen Sullivan said the abatement would strengthen business at the Cleveland Road facility by allowing them to move into a different market. He explained that half of the facility has been empty since the 2020 restructuring, and the new equipment and manufacturing process would utilize eighty-thousand (80,000) square-feet of that space. Council President Canneth Lee noted that Tenneco hires a great number of minorities and women. He asked what makes the City of South Bend an ideal place for the business. Allen Sullivan replied that the location is central to their customers in the automotive industry. He said the people also make it ideal, noting Tenneco's diverse workforce and high employee satisfaction. Committee Member Sherry Bolden-Simpson asked whether Tenneco will help new employees obtain welding certifications or they require candidates to be fully credentialed already. Allen Sullivan stated that Tenneco does not require welding certifications, but they are seeking a small group of candidates with welding experience to start. He said by the end of the year, they will start hiring people who need training. He said they are working with Ivy Tech Community College and South Bend Community Re-entry Center. Committee Member Bolden-Simpson stated that South Bend Community School Corporation hosts an annual trade show at the University of Notre Dame. She invited representatives from Tenneco to attend next time and recruit young people in the community. Allen Sullivan expressed interest in attending the next trade show. He said they are also planning some activities around Manufacturing Day in October. Committee Member Bolden-Simpson recommended contacting Superintendent Mansour Eid and School Board Member Kate Lee for more information. She asked about wages. Allen Sullivan said they pay up to thirty-six (36) or thirty-seven dollars ($3 7) per hour. Committee Chair White held the public hearing, and nobody spoke. Committee Vice Chair Gooden-Rodgers moved to send Bill No. 26-22 to the Full Council with a favorable recommendation, which was seconded by Committee Member Bolden-Simpson and carried by a vote of four (4) ayes with one (1) Committee Member and one (1) Citizen Member absent. Committee Chair Karen L. White -Aye Committee Vice Chair Ophelia Gooden-Rodgers-Aye Committee Member Sheila Niezgodski -Absent Committee Member Sherry Bolden-Simpson -Aye Citizen Member Tom Gryp -Absent Citizen Member Kevin Upton -Aye Bill No. 26-23 -Declaratory Resolution -Real Property Tax Abatement for GLC Mid-Bay, LLC EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 300 City Hall I 215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 Ip. 574.235.9221 If. 574.235.9173 1 www.southbendin.gov (~) CITY OF SOUTH BEND I OFFICE OF THE Cn-Y CLERK •• f · Erik Glavich presented the bill. He stated that Great Lakes Capital is seeking a real property tax abatement to build a new speculative industrial building in the Portage Prairie development area. He said the building 's flexible design could accommodate a single tenant or multiple smaller tenants. The expected cost is eight-point-eight million dollars ($8 ,800,000). He noted that it is difficult to determine the employment impact of a speculative building, but they expect the project to bring at least fifteen (15) new jobs that pay twenty-five dollars ($25) per hour. He said the vacant agricultural land currently generates seven-hundred-sixty dollars ($760) per year in property taxes, which would increase to three-hundred-thousand dollars ($300,000) per year after the building is completed. Over the eight (8)-year abatement term, he estimated that one-point- three-million dollars ($1 ,300,000) in property taxes would be paid and one-point-one-five-eight million dollars ($1 ,158,000) would be abated. He noted that the tenants pay the property taxes, and an abatement would be an incentive for small businesses. Ethan Fowler spoke on behalf of Great Lakes Capital. He said developers have focused on big box industrial developments in recent years, and there is a gap in the market for small and medium regional businesses. He said the new building would accommodate up to twelve ( 12) tenants with one-thousand (1 ,000) square-foot leases. He reiterated that the abatement would directly benefit the tenants by lowering their operating costs. Committee Chair White held the public hearing, and nobody spoke. Committee Vice Chair Gooden-Rodgers moved to send Bill No. 26-23 to the Full Council with a favorable recommendation, which was seconded by Citizen Member Upton and carried by a vote of four ( 4) ayes with one (1 ) Committee Member and one (1 ) Citizen Member absent. Committee Chair Karen L. White -Aye Committee Vice Chair Ophelia Gooden-Rodgers-Aye Committee Member Sheila Niezgodski -Absent Committee Member Sherry Bolden-Simpson -Aye Citizen Member Tom Gryp -Absent Citizen Member Kevin Upton -Aye With no further business, Committee Chair White adjourned the Community Investment Committee meeting at 4:15 P.M. Respectfully Submitted, c;t;~dk Karen L. White, Committee Chair EXCELLENC E I ACCOUN TABILITY ! INNOVATI ON ! INCLU SION I EMPOWERMENT 300 City Hall I 215 S. Dr. Martin Luther King Jr. Blvd. I South Bend, Indiana 46601 I p. 57 4.235. 9221 I f. 57 4.235.9173 I www.southbendin.gov