HomeMy WebLinkAboutDCI Presentation 08-24Department of Community Investment South Bend Common Council August 24, 2026 4 CityofSouthBend W Indiana Filed in Clerk's Office AUG 2 5 2026 Bianca Tirado City Clerk, South Bend, IN
Bill No. 26-24 Confirming Resolution: 5-year Personal Property Tax Abatement for Tenneco Inc. Bill No. 26-25 Confirming Resolution: 8-year Real Property Tax Abatement for GLC Mid-Bay, LLC f ~\ Cit~ of South Bend v>; .~ Ind1ana
Bill No. 26-24 Tenneco Inc. (3605 W. Cleveland Rd.) Tenneco Inc. (formerly Federal-Mogul Powertrain) • Has operated in South Bend since 1987 • Employs more than 100 associates • Serves major automotive manufacturers as a leading producer of automotive components s'~i City of South Bend .i. ~-_I Indiana
Bill No. 26-24 Tenneco Inc. (3605 W. Cleveland Rd.) Project Summary • The_compar,y plans to invest approximately $8.5 million in new welding, material handling, and testing equipment • Expand manufacturing capabilities and support entry into the Commercial Truck, Off-Highway, and Industrial (CTOHI) market. Employment Impact • 80 new jobs • Estimated total payroll of $5,818,000 City of South Bend ···" Indiana
Bill No. 26-24 Tenneco Inc. (3605 W. Cleveland Rd.) ! ~\ City of South Bend ". :;. / Indiana Personal Property Tax Abatement (S Years) Tax Summary • Personal Property tax liability for Pay 2026: $126,760 • Estimated additional taxes in the first year after installation: $105,683 • During the full 5-year abatement o New estimated taxes: $626,171 o Portion of new taxes abated: $455,882 o Portion of new taxes paid: $170,289 • During the 5-year period following the abatement: o Combined estimated new taxes paid, years 6-10: $272,133
Bill No. 26-24 Tenneco Inc. (3605 W. Cleveland Rd.) Tax Abatement for Personal Property ESTIMATED Taxes New Year Abatement Projected Taxes Net Taxes City of South Bend Indiana 3 4 III' I . t 90% 80% 70% Tax I • •• 105,683 158,524 145,314 118,893 97,757 Abated Paid • t I • :Jell■ . (135,969) 22,555 (103,963) 41,350 (68,145) 50,748 (42,121) 55,635
;-........ ,,1!!_\,'(:.
¾ it \
/,;f)fe,}/.
V 1 ~\ City of South Bend ". ·:_J Indiana Project Summary • Great Lakes Capital, through GLC Mid-Bay, LLC, will construct a new speculative industrial warehouse in the Portage Prairie development area o Total project cost: $8,800,000 o 132,620 square feet o Flexible industrial space, with suite sizes ranging from approximately 11,000 square feet to the full building, to accommodate a variety of tenants • Supports small and mid-sized businesses looking to locate or expand in South Bend, strengthening the local industrial base • Complements Portage Prairie's existing 1.35 million square feet of industrial space by providing newer, smaller, and more flexible options for the market Employment Impact • 15-100 new jobs, depending on future tenants; estimated $25 per hour
t~\ City of South Bend i .--~-/ Indiana Real Property Tax Abatement (8 years) Tax Summary • Pre-project estimated annual taxes: $763 • Estimated annual taxes after project: $309,170 • During the 8-year abatement o Total estimated taxes: $2,473,363 o Taxes abated: $1,158,291 o Taxes paid: $1,315,072 • Estimated cumulative taxes paid with abatement included o After 10 years: $1,933,413 ($7,628 with no project) o After 15 years: $3,479,265 ($11,442 with no project) o After 20 years: $5,025,117 ($26,659 with no project) ..
Bill No. 26-25 GLC Mid-Bay ( Chet Waggoner Ct.) Tax Abatement for Real Property Year Abatement Estimated Projected P . d Pre-Project Additional Tax T roLJ~cbt~. Taxes Abated T L• b"l"t L" b"l"t ax ia illty ax Ia 1 1 y Ia 1 1 y tr.11rrAnt + Total 1 -Pay 2028 D0°10 $ D~ I$ 308,408 $ 309,170 $ (289,746) □ □'J□ 90% 763 308,408 309,170 (245,450) U--J:>E~~ ?030 80% 763 308,408 309,170 (202,970) 4 -Pay 2031 70% 763 308,408 309,170 (160,490) 60% 763 308,408 309,170 (118,009) 50% 763 308,408 309,170 (75,529) 5 -Pay 2032 o=-~~y ~Q~], 7 -Pay 2034 40% 763 308,408 309,170 (33,049) B □ D 40% 763 308,408 309,170 (33,049) 9 -Pav 2036 I 0% 763 308,408 309,170 -308,408 309,170 -Total: 7,628 3,084,076 3,091,704 (1,158,291) t ~\ City of South Bend 1\ ·:r. _.,. Indiana Net Taxes Paid $ 19,425 63,720 106,201 148,681 191,161 233,641 276,122 276,122 309,170 309,170 1,933, .,