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REGULAR MEETING APRIL 25, 2016 CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 3605 W. CLEVELAND RD, SOUTH BEND, IN 46628 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE -YEAR PERSONAL PROPERTY TAX ABATEMENT FORYEDERAL- MOGUL POWERTRAIN, LLC Councilmember Gavin Ferlic reported that the Community Investment Committee met and sends this bill forward with a favorable recommendation. 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. The total estimated taxes abated will be $447,200. This equipment will not create any new jobs but it will help retain 544 full time jobs with an annual payroll of over $23 million. William Maki, Controller at Federal Mogul 1919 Eagle Point Court South Bend, stated $8 million is for equipment for Chrysler products as they are mostly GM currently. They are expecting increased sales in about a year to a year and a half. 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. There were no questions from the Council. No one spoke either in favor or opposition to the bill. Councilmember Dr. David Varner made a motion to adopt Bill 16 -40. Councilmember Gavin Ferlic seconded the motion which carried by a roll call vote of eight (8) ayes. 16 -41 A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND DESIGNATING CERTAIN AREAS WITHIN THE CITY OF SOUTH BEND, INDIANA, COMMONLY KNOWN AS 4004 TECHNOLOGY DRIVE, SOUTH BEND, IN 46628 AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A (5) FIVE -YEAR PERSONAL PROPERTY TAX ABATEMENT FOR: THE LEBERMUTH COMPANY, INC. Councilmember Gavin Ferlic reported that the Community Investment Committee met and sends this bill forward with a favorable recommendation. 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 $1.2 million 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 with an annual payroll of near $4 million. Allen Brown, CEO of Lebermuth Co., served as the petitioner for this bill. The Lebermuth Co. helps the world taste and smell better, they manufacture flavors and fragrances and are in the essential oils business. 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. This will include one (1) robotic dispensing unit and one (1) semi - automatic unit as well as some additional construction that will occur inside their current building. There were no questions from the Council. 12