Laserfiche WebLink
CITY OF SOUTH BEND OFFICE OF THE CLERK <br /> one hundred (100) million, we need to do some basic starting projects. At the end of this whole <br /> process, we are actually wanting to add more capacity for our DVG. That is the solid portion we <br /> have left after grinding up an ear of corn and turning it into ethanol. DVG is actually sold overseas. <br /> We create very good DVG that is used for export. The only problem is we transport it from the <br /> State, send it to some other state and then they export it to the rest of the world. We are actually <br /> going to invest in a containerized loading facility here and will be able to ship directly out of South <br /> Bend. That means we will have international sales from the standpoint of the DVG. That is quite <br /> significant. <br /> Committee Chair Ferlic opened the floor to questions and comments from Committee and Council <br /> Members. <br /> Councilmember Tim Scott asked, What will the pay range of those five(5) new jobs be? <br /> Mr. Winks replied, Those will be in the Grains Department partment a n <br /> d they will be in the twenty to <br /> twenty-five dollar an hour($20 -$25/hr.) level. <br /> Councilmember Scott followed up, Are you shipping out by railcar? <br /> Mr. Winks replied, We are currently railcar and also by truck. <br /> Councilmember Scott followed up, And what percentage is the DVG of the revenue? <br /> Mr. Winks replied, The DVG itself accounts for twenty-two percent(22%) of the overall revenue. <br /> Councilmember Scott stated, That is good for scrap. It is always good to repurpose scrap. <br /> Councilmember Jake Teshka asked, At what point will this break even? <br /> Mr. Buckenmeyer replied, The amount being abated is only$483,000. <br /> Councilmember Teshka followed up, So my understanding of this is we are gaining ground on day <br /> one(1), right? <br /> Ms. Billo replied,With the current taxes,they paid over$800,000 of taxes for 2017. So this is only <br /> going to be abated for the new assessed value but the company will continue paying taxes on all <br /> existing tax value. <br /> Councilmember Teshka then asked, And what if this tax abatement was not granted? What would <br /> that do to your corporation? <br /> Mr. Winks replied, Actually, that would increase the cost of the overall project but it would not <br /> stop us from going forward. This is a two (2) year project so we have to make the decision about <br /> economics and the choice was to go forward regardless of receiving this abatement. <br /> Committee Chair Ferlic then opened the floor to members of the public wishing to speak in favor <br /> of or in opposition to this legislation. <br /> Jim Bognar, 807 W.Washington Street, South Bend,IN,stated, I'm not so much speaking in favor, <br /> though I think this is good,but I would like to ask a question. Are you folks intending on applying <br /> for the opportunity zone tax incentive? I do believe your area falls into that and that is a significant <br /> tax savings and I was just curious if that was a part of your plans. <br /> EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT <br /> 455 County-City Building 1227 W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 1574.235.9173 TTD574.235.5567 www.southbendin.gov <br /> 6 <br />