The St. Joseph County Council, last night (September 27), unanimously approved the tax abatement package for a potential $2.4 billion electric vehicle battery manufacturing facility near South Bend, in New Carlisle’s Indiana Enterprise Center (IEC). The council approved tax incentives and a development agreement for Ultium Cells LLC’s plans for the 2.5 million-square-foot facility, which could bring 1,600 jobs to the area and an annual economic impact of more than $650 million. The 656-acre site is one of several being considered by Ultium.

Tuesday’s action required several critical steps in the process, including approval of the development agreement by the Redevelopment Commission (5-0) and the County Commissioners (3-0). It also included approval of the development agreement and confirming resolution for the tax abatement by the County Council (9-0). The State of Indiana also is a critical partner and reported that they, too, have approved their incentive package for the project.

Incentives include a 10-year tax abatement on real property that provides an 80% discount throughout, along with a 15-year phased-abatement on personal property that starts at 100% in years one and two, before dropping to 70% in years six through 15. The county would also be responsible for infrastructure improvements to roads and utility extensions in and around the plant--$15-$20 million.

According to the agreement, the average wage would be $23.50, with annual payroll at $75.2 million. In addition to the clean room environment, 12-hour shifts and a four-day work week would be featured.

Chamber President & CEO Jeff Rea commented, “We’re excited to be at this important point in the process. We believe we’re a strong contender for Ultium Site #4 and believe that a great business case can be made as to why St. Joseph County should be the home to their next facility.” Rea added, “I couldn’t be more proud of the local effort, and all the critical players that helped us get to this important milestone, especially the work of St. Joseph County Economic Development Director Bill Schalliol and Chamber Economic Development Director Alyson Herzig, our project leads. In addition, former County Commissioner Andy Kostielney, New Carlisle Town Engineer Jared Huss, and County Attorney Phil Garrett have played critical roles over the past 10+ months on the project.”

Rea added, “I’m grateful for the work and the important role that the St. Joseph County Council, St. Joseph County Redevelopment Commission, St. Joseph County Commissioners, New Carlisle Town Council, and Olive Township officials have played, as well as our utility partners at the City of South Bend, I&M and NIPSCO. They asked a lot of great questions, and each recognized the great fit a company like Ultium could be for our region.” Finally, Rea thanked the citizens that have been engaged in the process. “Residents of the New Carlisle area and from St. Joseph County have asked some great questions throughout the process and largely helped shape the Chamber’s FAQ page as the community sought open, transparent and clear answers to any questions or concerns that were raised. We’re grateful for their engagement as well throughout the process.”

If the location at SR2 and Larrison Rd. is selected, it is estimated 2,000 construction workers would be needed.

Ultium Cells LLC is a joint venture between General Motors and LG Energy Solutions. The company expects to make a final decision by the end of the year. Keep up-to-date on the proposed project by viewing a handy FAQ dashboard developed by the Chamber.

FAQ Dashboard