11-15-04 Community & Economic Development

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number should be reached some time in the near future. The Walnut Street facility has two (2) shifts and there is a decline in product. Currently they have not found the right markets. The building cost was $174,025 short of the projected cost; however it was a 50,000 square foot addition. Mr. Hernly stated that he believes more was invested, and will look into the actual amount. The facility is owned by Steel Warehouse and is then leased to Lock Joint Tube. With regard to the Ireland Road facility, the building addition is short $178,000 and they are down 13 jobs. It was noted that they have always exceeded the payroll amount projections, even when the head-count was down. Mr. Hernly stated that he would send additional information to Council Member Kelly. Council Member Kelly thanked the representatives of Lock Joint Tube for their presentation. Bowne of South Bend,Inc.: Council Member Kelly then asked representatives from Bowne of South Bend, Inc. to address the Committee. Dan Smith, Controller and Jerry Christianson, Vice-President & General Manager noted that they are 24 employees below the projected number. This is their first abatement and without the abatement their company would be seriously affected. In 2001 two (2) production lines were added and alot of temporary help was hired. 173 hours per month are considered a full-time employee equivalent. The company does financial printing for companies in New York and Chicago. They noted the following: $44 million in sales 361 IPO's&MNA's in calendar year 2000 $30 million in sales 108 IPO's&MNA's in calendar year 2003 There has been a steady decline in light of mergers and acquisitions. In May of 2003 they were told to reduce employment by 25 employees because of business being down. However there is a new President of the company in New York who decided to go back to the basics. The South Bend plant is the most profitable of the Bowne operations. They are pursuing mutual fund printing opportunities but do not believe that they will be able to hire back the 25 employees. They appreciate the tax abatement,however since 9/I1 the financial markets have not recovered. The projections made in their documents were made in good faith. Prior to 9/11 they were a 24/7 operation. Mr. Christianson stated that when business is slow they ask an employee to take a 1/2 day off in order to make it thru these tough financial times. Council Member Kelly thanked the company representatives for the additional information. Honeywell International: Council Member Kelly then called for information from the representatives from Honeywell. Pete Fera, Chief Financial Officer and Julie Tenney, Communications Director of Honeywell Aircraft Landing System with office at 3520 Westmoor Street, South Bend, Indiana 46628 then addressed the Committee. They agreed to submit a new'CF-l. They stated that prior to 9/11 there were 886 employees, now they have 657 employees. Their company is in the aircraft November 15,2004 Community and Economic Development Committee meeting of the 2005 South Bend Common Council -page 2-