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REGULAR MEETING SEPTEMBER 26, 2016 SAMPLE STREET, SOUTH BEND, IN 46619 AS AN ECONOMIC REVITALIZATION AREA FOR PURPOSES OF A FIVE (5) YEAR PERSONAL PROPERTY TAX ABATEMENT FOR INDUSTRIAL METAL -FAB, INC. Sarah Heintzelman, Department of Community Investment with offices on the 14th Floor of the County -City Building, served as the presenter for this bill. This is a tax abatement for Industrial Metal -Fab who are looking to invest $520,000 in private investment. New taxes created will be $71,105 and an abatement of that would be $20,167. They are looking to create ten (10) new jobs with over $300,000 in annual payroll. Councilmember Davis asked how much of that $71,105 of tax is currently coming in now. Ms. Heintzelman responded none of that. Over the total time period of the abatement the amount of taxes created would $71,105 but right now it is $0 because the amount of new money they are going to be investing will generate these new taxes. Right now none of that money is coming in and none of it will come in unless they make this investment. Councilmember Davis asked how is this different than the housing abatements that we give. Ms. Heintzelman responded that the taxes that are going to be generated are primarily going to be for the revitalization area and that money will go back into infrastructure work. It is also going to be separate from money that is going to come in from residential properties. For some of these businesses like IMF, they are landlocked and cannot continue to grow in South Bend. This is also for them a very large capital expenditure and one that we can help to ease by doing this. They may not make this investment without this abatement. This is an opportunity to help some of these local businesses who are then tied to South Bend because the tax abatements are going to bring in additional people who will be working in the community. Councilmember Davis asked if there has been talk of this company leaving that spot. Ms. Heintzelman responded yes there has been and they are currently on Sample right now which is not a really good area for us to lose any more businesses because it has been primarily industrial for a long time. This has been a locally owned business for over fifty (50) years. If we can do something to help them and keep them here that is a worthwhile expenditure on our part particularly because we are not taking money out of the coffers right now but simply abating money that they have not even invested yet. If they were to not invest this money and move then we would lose everything that is already there. Council President Scott stated he wants to remind the Council that these are confirming resolutions. We have heard these abatements almost verbatim with the same data two (2) weeks ago. Once we approved it two (2) weeks ago they come back for the confirming before they go down state. Kyle Bodwig, Industrial Metal Fab 2806 W. Sample Street, served as the petitioner for this bill. The company has been located at that location since 1964 and is landlocked and looking to expand our capabilities to remain competitive in today's environment. This would help us stay at that location without having to relocate somewhere else. Councilmember Davis asked how this specifically helps them stay at that location. Mr. Bodwig responded that they are at the point where they cannot keep up with their current workload and need to add some new machinery. They can't add the machinery until they have the space. The alternative to this would be to not meet our customer's demands or look elsewhere or be creative with where we are at. Councilmember Williams- Preston asked if the company does not get this abatement, in the next five (5) years would they be looking to move. Mr. Bodwig responded moving would be an option on the table. The idea of moving has come up prior to this and this was an idea he personally took upon himself before they started looking 12