HomeMy WebLinkAbout03-24-14 Community InvestmentCOMMUNITY INVESTMENT March 24, 2014 3:30 P.M.
Committee Members Present: Gavin, Ferlic, Valerie Schey, Henry Davis, Derek Dieter
Citizen Members Present: Patrick Mullin
Other Council Present: Tim Scott, Dr. Fred Ferlic, Dr. David Varner, Oliver Davis,
Karen White
Others Present: Cecil Eastman, Roberto Parisi, Kathy Cekanski - Farrand,
Chris Fielding, Kathy Hahn, Kathryn Roos, Bernie Hunt,
Joe Limone, Scott Ford, Brock Zeeb, John Voorde
Agenda: Bill No. 14 -17 Tax Abatement for Noble Americas South Bend
Ethanol LLC, 8 Yr. Real Property
Bill No. 14 -25 Tax Abatement for Noble Americas South Bend
Ethanol LLC, 5 Yr. Personal Property
Bill No. 14 -26 Tax Abatement for Lippert Components
Manufacturing Inc., 2 Yr. Real Property
Bill No. 14 -27 Tax Abatement for Lock Joint Tube, 5 Yr.
Personal Property
Bill No. 14 -28 Tax Abatement for Lock Joint Tube, 7 Yr. Real
Property
The Community Investment Committee met to consider five separate tax abatement petitions. The first
two were for Noble Americas South Bend Ethanol LLC; Chris Fielding from Community Investment
Department made the presentation. For purposes of the public hearing, Gavin Ferlic allowed both bills
to be considered together.
Chris Fielding explained the scope of the project first. To get the ethanol plant producing again Noble
Americas proposed to make an investment over the next five years. Once up and running the plant
would employ 50 plus workers with a payroll over $2.8 million. Chris asked the Council to consider two
bills at once. Bill No. 14 -17 was a real property tax abatement for up to 8 years. Bill No. 14 -25 was a
request for personal property abatement for up to 5 years. Chris went on to explain the Assessor's
office had yet to determine whether the plant was to be considered real or personal property.
Qualifying petitions for each were filed so construction could begin and to meet abatement deadlines.
The company would accept either real or personal based upon the Assessor's call. Both Derek Dieter
and Valerie Schey asked about skill sets needed for the 50 new jobs and asked assurance the company
would accept one or the other abatements. Two representatives from Noble Americas were present to
answer the questions.
Finally on a motion to send both bills favorably to Council by Derek Dieter and seconded by Gavin Ferlic,
subsequently supported unanimously the bills were so forwarded.
Bill No. 14 -26, a petition for a two year real property abatement for Lippert Components Manufacturing
was next on the agenda.
Chris Fielding, again presenting explained Lippert was relocating their operations from Elkhart County to
the vacant TJ Maxx building on the city's west side. State law limits the eligibility for abatement to two
years when occupying on existing facility. Nonetheless, Chris explained that nearly 200 jobs would be
created in the first year with the prospect for 100 more in the second. The jobs would pay in the $12.00
to $15.00 dollar an hour range.
Valerie Schey noted the Redevelopment Commission was contributing nearly a quarter million dollars to
the project. She took this opportunity to request that the City include all sources of development funds
in one document to better equip the Council with the facts to act on abatement petitions.
Ultimately Derek Dieter motioned for approval. This was seconded by Valerie and approves by all.
The final two petitions for tax abatement were filed by Lock Joint Tube (UT). Chris fielding explained
that UT was expanding their Ireland Road facility by 30,000 sq. ft., adding 9 newjobs, and investing over
$9 million dollars in the facility.
Kathy Hahn from Community Investment explained that UT Company was represented by Attorney Rich
Deahl, who made a brief presentation landing the strength of the company along with their
commitment to the community.
Again after brief discussion Derek Dieter moved to send favorably. Valerie Schey seconded and all
affirmed.
There being no further business Gavin Ferlic adjourned at 3:51 P.M.
Respectfully Submitted,
Gavin Ferlic, Chairperson
Community Investment Committee