HomeMy WebLinkAbout04-25-16 Community InvestmentOFFICE OF THE CITY CLERK
KAREEMAH FOWLER, CITY CLERK
COMMUNITY INVESTMENT APRIL 25 2016 3:50 P.M.
Committee Members Present: Gavin Ferlic, Oliver Davis, William Smith,
Paul Tipps
Other Council Present: John Voorde, Karen White, Jo M. Broden, Dr. David Varner
Others Present: City Clerk Kareemah Fowler, Alkeyna Aldridge,
Joseph Molnar, Kathleen Cekanski - Farrand,
Adriana Rodriguez
Agenda: Bill No. 15 -106 — Designating a two year tax abatement for
Appletree Associates, LP (1915 Bendix Dr.)
Bill No. 16 -40 — Designating a five year personal property
tax abatement for Federal Mogul
Bill No. 16 -41 — Designating a five year personal property
tax abatement for Lebermuth Co.
Councilmember Gavin Ferlic, Chairperson of the Community Investment Committee, called the
meeting to order with three (3) bills on the agenda.
Bill No. 15 -106 — Designating a two year tax abatement for Appletree Associates, LP (1915
Bendix Dr.)
At the request of the petitioner, Councilmember Oliver Davis made a motion to continue Bill 15-
106 to May 9th. Committeemember Williams Smith seconded the motion which carried by a
voice vote of four (4) ayes.
Bill No. 16 -40 — Designating a five year personal property tax abatement for Federal Mogul
Sarah Heintzelman, Community Investment with offices on the 14th Floor of the County-City
Building, served as the presenter for this bill. This is a personal property tax abatement for
Federal Mogul. They are looking at investing $11,315,200 on new equipment. This equipment
will not create any new jobs but it will help retain 544 full time jobs.
455 County-City Building • 227 W. Jefferson Boulevard • South Bend, Indiana 46601
Phone 574- 235 -9221 • Fax 574- 235 -9173 • TDD 574- 235 -5567 • www.SouthBendIN.gov
JENNIFER M. COFFMAN ALKEYNA M. ALDRIDGE EMILY SEXTON
CHIEF DEPUTY/ CHIEF OF STAFF DEPUTY/ DIRECTOR OF POLICY ORDINANCE VIOLATION CLERK
William Maki, Controller at Federal Mogul, stated $8 million is for equipment for Chrysler
products as they are mostly GM currently. The company has invested a lot of money at the plant
for the past six (6) years, the automotive market is very competitive even though business is
good. The reason we are not adding jobs is we just need to increase sales just to retain jobs
nowadays, which is a challenge with Mexico and other foreign companies competing against us.
This is an investment in South Bend and the company enjoys being here.
Committeemember Paul Tipps asked if this is primarily tooling or new equipment.
Mr. Maki responded it is primarily new equipment such as casting cells in a complete new
machine.
Mr. Tipps also asked if Federal Mogul have met previous reporting requirements and job criteria
from previous tax abatements.
Ms. Heintzelman stated she cannot remember them ever being in non - compliance and nothing
sticks out to her.
Councilmember Dr. David Varner stated Federal Mogul came to us about twelve (12) years ago
and occupied the building of someone who had just left. The Council have provided abatements
and their serial growth has led to over five- hundred (500) jobs and it was nothing like that when
they first came it was maybe eighty (8 0) jobs or so.
No one from the public spoke either in favor of or opposition to the bill.
Committeemember William Smith made a motion to send Bill 16 -40 to the full Council with a
favorable recommendation. Councilmember Oliver Davis seconded the motion which carried by
a voice vote of four (4) ayes.
Bill No. 16 -41 — Designating a five year personal property tax abatement for Lebermuth Co.
Sarah Heintzelman, Community Investment with offices on the 14th Floor of the County -City
Building, served as the presenter for this bill. This is a personal property abatement for
Lebermuth, they are planning on investing $1,425,000 for new equipment. Total estimated taxes
abated will be $47,436. This project will create five (5) full time new jobs with an annual payroll
of $208,000 and will help to retain seventy (70) current jobs.
Allen Brown, CEO of Lebermuth Co., served as the petitioner for this bill. This new equipment
will let us develop our fragrances in a more technologically efficient manner to continue to be
competitive with other companies around the world.
Committee member Paul Tipps asked if Lebermuth has been in compliance with their previous
tax abatements.
Ms. Heintzelman responded yes as far as she knew
2
No one from the public spoke in favor or opposition to Bill 16 -41.
Committeemember William Smith made a motion to send Bill 16 -41 to the full Council with a
favorable recommendation. Councilmember Oliver Davis seconded the motion which carried by
a voice vote of four (4) ayes.
With no further business before the Committee, Chairperson Gavin Ferlic adjourned the meeting
at 4:01 p.m.
Respectfully Submitted,
Gavin Ferlic, Chairperson