Council reconfirms tax abatement for Verbio North America, extends designation period to 2030 amid federal delays

The Common Council adopted two reconfirming resolutions (Resolutions 25-42 and 25-43) that reconfirm the council's 2023 findings and extend the designation period for tax abatement eligibility for Verbio North America LLC at the site commonly known as 3201 West Calvert Street.

Eric Glavich, Director of Growth and Opportunity, told the council Verbio purchased the South Bend ethanol plant and is investing more than $230 million to modernize the facility and add renewable natural gas production. Glavich said construction has started (foundations and concrete pads for digestion tanks are in place) but progress slowed because federal guidance required to secure a 45Z production tax credit — guidance from the Department of Energy and the IRS — has not yet been issued. Verbio's CEO, Greg Northrup, told the council federal guidance is expected in 2026 and full approvals could take another 12–18 months after that.

Because the original designation period granted in 2023 would expire at the end of 2026, the reconfirming resolutions extend the designation period to Dec. 31, 2030 so Verbio can complete the project once federal approvals are available. Northrup said the company has already invested roughly $20 million to date and has built nine of the concrete pads for anaerobic digestion tanks; he asked the council to approve the extension so the company can resume full construction when federal approvals are in hand.

Councilmembers praised the investment and its potential to save and create jobs and said they supported the reconfirmation. No members of the public registered opposition during the public hearing. The council adopted both reconfirming resolutions by roll-call vote (9 ayes).