Big tax breaks are on deck for thenew owners of the South Bend ethanol plant after the city council Monday moved forward with a proposal to give the energy company over $16 million in abatements.
Verbio recently purchased the ethanol plant on Calvert Street and the company says it plans to invest $230 million into the property over the next three years. The company has also said it plans to retain all 61 employers currently working at the factory.
As a mechanism to unlock that investment, the South Bend Common Council favored a plan that will give Verbio tax breaks for eight years. Verbio will pay the city more than $6 million during those years, while approximately $16.5 million will be waived.
According todocuments filed by Verbio, most of the company’s investments will go toward 16 enormous storage tanks and equipment to upgrade methane gas into usable natural gas. Verbio's specialty is taking the byproducts from ethanol production and using them in the process of creating natural gas.
Council members voted to move forward with the abatements Monday, though a final vote will take place later this month.
