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OSOMASCHINI
<br />NORTH AMERICA
<br />4601 Nimtz Parkway
<br />South Bend, IN 46628
<br />Phone 574. 968 -0273
<br />December 16, 2013
<br />Janice Talboom
<br />Office of the Clerk
<br />227 W. Jefferson Boulevard, Suite 400 S
<br />South Bend, IN 46601 -1830
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<br />LR'KUCITY CC,� TH II ND, IN
<br />Re: Somaschini North America, LLC, Personal Property Tax Abatement
<br />Dear Ms. Talboom:
<br />South Bend Gear, LLC ( "SBG ") received a five -year personal property tax abatement from the
<br />South Bend Common Council (see enclosed copy of Memorandum of Agreement dated February
<br />21, 2011 and enclosed copy of Statement of Benefits form SB -I /PP dated January 28, 2011 and
<br />related attachments).
<br />The abatement was based on the estimate that SBG would expend $15,600,000 over a two -year
<br />period ended February 14, 2013 on manufacturing equipment and related expense items. in
<br />addition, it was estimated that SBG would create at least twelve new, permanent, full - timejobs
<br />with an annual payroll estimated at $550,000 by February 15, 2012, and would create at least
<br />fourteen new, permanent, full -time jobs with an annual payroll estimated at $641,000 by
<br />February, 13, 2013. In February 2013, the time frame to meet the abatement projections was
<br />extended to February 13, 2014.
<br />In the most recent form CF- I /PP filed on May 10, 2013 (see enclosed copy of CF- I /PP),
<br />Somaschini North America, LLC (formerly known as SBG) reported actual equipment costs of
<br />$9,642,214 (compared to the total estimated commitment of $15,600,000) and actual annual
<br />payroll of $477,683 (compared to the total estimated commitment of $641,000). With the
<br />exception of $367,886 of equipment costs that were acquired in January and February of 2013,
<br />those actual amounts on the CF -1 / /PP represented the equipment costs and payroll as of
<br />December 31, 2012. Somaschini North America, LLC ( "Soma ") has continued to invest in
<br />equipment and payroll in 2013. As of November 30, 2013, Soma has made additional
<br />investments in equipment of $2,820,000 for a total investment of approximately $12,462,000 and
<br />incurred payroll in excess of $650,000.
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