02-11-02 Council Meeting Minutes

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