South Bend moves to waive $16.5 million in taxes for new owner of ethanol plant who plans $232.5 million expansion and eight more jobs

The South Bend Common Council passed resolutions supporting two tax abatements that would waive an estimated $16.5 million in property taxes over the next eight years for Verbio North American Holdings Corp., the company that bought the facility last week. Verbio said it will retain 61 jobs and create eight new positions at the plant as part of its $232.5 million plans to expand and produce ethanol as well as renewable natural gas.

More:Germany's Verbio buys South Bend ethanol plant and plans $230 million upgrade

The council will take a final vote on the tax abatements at its May 22 meeting. Council members on Monday voted unanimously in favor of the plan.

Verbio would still pay roughly $6.3 million in taxes over the eight-year abatement period, according to the petitions. But under the plan, more than 70% of taxes would be waived.

Verbio CEO Greg Northrup said the city's tax abatement is crucial to the company's goal to produce 85 million gallons of corn ethanol and 2.8 billion cubic feet of renewable natural gas per year. The company would also make fertilizer for use in agriculture.