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02-11-02 Council Meeting Minutes
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02-11-02 Council Meeting Minutes
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City Council - City Clerk
City Council - Document Type
Council Mtg Minutes
City Counci - Date
2/11/2002
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REGULAR MEETING <br />FEBRUARY 11, 2002 <br />contract furniture industry. In its petitions, Accuride promised, among other things, that it <br />would: <br />a) Construct an approximately $4.5 million, 168,000 sft. building with approximately $1.5 <br />million in manufacturing equipment at 4300 Quality Drive. <br />b) Employ, as the result of the project 250 additional employees whose total annual salaries <br />would be approximately $6.0 million. <br />2. In reliance on these promises, the South Bend Common Council in November 1992 granted <br />to Accuride a 10 -year Real Property Tax Abatement and a 5 -year Personal Property Tax <br />Abatement. <br />3. The Personal Property Tax Abatement expired in 2001, and the Real Property Tax <br />Abatement will expire in 2004. <br />4. On November 20, 2001, South Bend Mayor Stephen Luecke received a letter from Accuride <br />Vice President of Human Resources, Robert R. Morris, stating the company's "plans to <br />permanently close its entire plant located at 4300 Quality Drive, South Bend." The letter <br />also indicated that 196 jobs would be eliminated, the first separation from employment <br />would start on January 30, 2002, and the separation would be completed within a two week <br />period. <br />5. On January 31, the City of South Bend's Legal Department presented for consideration by <br />the Council Resolution 02 -6 which would rescind and terminate the Accuride tax abatements <br />on grounds that Accuride's closing of its South Bend operation constitutes noncompliance <br />with Accuride's contract to create and maintain certain employment levels within the City. <br />On the same day, Chief Assistant City Attorney Aladean DeRose sent to the President of <br />Accuride International, Inc. a letter and a copy of Resolution No. 02 -6 giving notice of these <br />proceedings. <br />6. Based on this information and the oral testimony presented in a public hearing held earlier <br />today, the Committee finds that Accuride has, in fact, failed to comply with its promised <br />employment and salary levels. <br />7. The Committee further finds that Accuride has violated Indiana Code Sec. 6- 1.1 -43 -3 which <br />provides in part that "if a recipient of an economic development incentive fails to comply <br />with the wage and benefit levels that the recipient proposed or promised to obtain an <br />economic development incentive, the recipient forfeits the economic development incentive <br />as of the date of determination." <br />8. Therefore, the Committee recommends that the Council adopt Resolution 02 -6 which: <br />a) Affirms the findings recited in this report; <br />b) Revokes and repeals the Council's prior resolutions granting tax abatements to Accuride, <br />and <br />c) Directs the City Administration to pursue civil sanctions against Accuride as authorized <br />by Section 2 -84.14 of the South Bend Municipal Code. <br />Councilmember King stated that the Committee voted to send this bill to the Council with a <br />favorable recommendation. <br />Mayor Stephen Luecke, 1400 County -City Building, South Bend, Indiana, thanked the Community <br />-7- <br />
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