There will be cash consequences for the Robert Bosch Corporation for eliminating some 250 engineering jobs in South Bend last October.
Bosch has agreed to pay more than $2.6 million for the broken promises it made to government officials.
It was back in the year 2000 that the City of South Bend went to great lengths and great expense to keep Bosch in town.
In fact, the city bought the building Bosch was leasing, make improvements, and then leased it back to the company.
All the city asked in return was that the company keep its good paying engineering jobs in town through 2020.
“While we all would have preferred that Bosch remain with the engineering jobs that were at the site, Bosch has lived up to the terms of its agreement under the lease, it is paying all the penalties and loan amounts back that are required under those documents,” said Don Inks with South Bend’s Department of Community Investment.
“They left almost ten years early, so there was a penalty due under the lease that is a little over $1.3 million dollars.”
Bosch will also pay some $746,000 to the City of South Bend to repay loans from local and state sources needed to complete the original project.
Over time, Bosch will continue to make payments on a $538,000 loan from the Indiana Development Finance Authority.
Meantime, Curtis Products is expected to move into the old Bosch building sometime this summer.
Curtis Products is a fabricator of steel tubing that employs about 300 workers.