10-09-17 Community Investment - Laserfiche WebLink

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Rob Michalak, Vice President of Operations for Masterbilt located at 325 S. Walnut Street, stated, We are looking at investing in a couple new pieces of equipment over the next year. Committee Chair Ferlic opened the floor to questions from the Committee and Councilmembers. Committeemember Paul Tipps asked, Has Masterbilt been in compliance with their other abatements they have received? Mr. Buckenmeyer replied, Yes, sir. Committeemember Tipps followed up, Can you elaborate on your wage rate section of your abatement application? What is your lowest hourly rate your company pays? Mr. Michalak replied, We have some part-time employees making less, but our lowest full-time rate is twelve dollars an hour($12/hr). Committee Chair Ferlic then opened the floor to members of the public wishing to speak in favor of or in opposition to the legislation. Mr. Rassmunsen asked, Would the petitioner be making this five (5) year investment without this abatement? Sue Kesim, 4022 Kennedy Drive, stated, So the tax-payer is giving up over $500,000 to create two (2)jobs. I am not sure why the tax-payer is giving up that much money for only two (2)jobs. Mr. Buckenmeyer replied, So the actual tax abated over the five (5) years is only $16,292. The taxes Masterbilt will be paying over that same period of time will be $24,906. That$500,000 is the investment they will be making. Mr. Michalak replied, We could run these investments without this abatement but it will help because we are a small business. Committeemember Smith made a motion to send Bill No. 17-60 to the full Council with a favorable recommendation. Committeemember Davis seconded the motion which carried unanimously by a voice vote of six(6) ayes. Committeemember Kelly made a motion to hear Bill No. 17-62 and Bill No. 17-66 together for purposes of public hearing. Committeemember Davis seconded this.motion which carried unanimously by a voice vote of six (6) ayes. Bill No. 17-62- Designating Real Property Tax Abatement for TriPac Bill No. 17-66- Designating Personal Property Tax Abatement for TriPac Mr. Buckenmeyer stated, Tri-Pac, Inc. is a company that is currently located in Michigan and they want to relocate to South Bend to enable their company to grow. We are looking at two (2) tax abatements, both for real property and personal property. They are looking to make an additional $1 million investment on the real property. We are proposing a seven(7)year tax abatement and in that time the abated amount would be about$84,000 and the taxes paid would be about $314,000. They plan on bringing an additional sixty(60)new jobs to South Bend. They 3