08-08-16 Community Investment - Laserfiche WebLink

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Council Attorney Kathy Cekanski- Farrand explained that this is the process of reconfirming that has been done in the past when there has been a transfer. Councilmember Dr. Varner stated that this transfers the balance of the existing abatement; it doesn't extend it or change it in any way. Committeemember Davis motioned to bring Bill No. 16 -59 to the full Council with a favorable report, Committeemember Davis seconded and it carried by a voice vote of five (5) ayes. Bill No. 16 -61- Five -year (5) Personal Property Tax Abatement for AM General Sarah Heintzelman, Department of Community Investment on the 14th Floor of the County City Building, AM General is moving from Mishawaka to South Bend, with a total investment of $3.2 million. For the personal property aspect of it, it is going to be $1.1 million worth of investment in equipment. Of that there is going to be $94,366 in taxes generated. We are asking for an abatement of 43,483 over the course of a five (5) year period. This relocation is going to bring one - hundred and twenty -three (123) new permanent full -time jobs, with an estimated annual payroll of over $9 million. Eric Swift, Budget Manager for the AM General move, was present to answer any questions the Council may have. Councilmember Karen White asked if the new jobs would be transfers or brand new positions, and Ms. Heintzelman clarified that any time jobs come in to South Bend, they are considered new. Committeemember Paul Tipps asked if the statement that AM General LLC had no other abatements, personal or real, includes when the company was on Chippewa Avenue. Ms. Heintzelman stated that to the best of her knowledge, yes. There are no active abatements for AM General at this time. Committeemember Oliver Davis asked if there are currently any new employees planned, or if all of the one - hundred and twenty -three (123) employees will be transferred. Mr. Swift stated that they will all be transferred; they are existing employees, they are just being moved to the new location. Committeemember Randy Kelly moved to send Bill 16 -61 to the full Council favorably, it was seconded by Committeemember Williams- Preston, and it carried by a voice vote of five (5) ayes. With no other business before the Committee, Committee Chair Gavin Ferlic adjourned the meeting at 3:50 p.m. Respectfully Submitted, Gavin Ferlic, Committee Chair NJ