GOSHEN — Lippert Components has not met its goal as part of a tax deal with the city, council member decided Tuesday.
Rather than adding 376 employees, the company actually lost 240, according to information provided to the Goshen City Council.
Council members voted to find that Lippert is not in compliance with the terms of the tax phase-in, which was approved in 2013 for new painting equipment, lathes and dust collectors together valued at up to $10 million. A statement of benefits form covering 2013 to 2016 shows that Lippert expected to add to its 1,078 employees, but instead ended the period with 838 workers.
"They're quite a ways off on the jobs," said Mayor Jeremy Stutsman, who wondered whether it was because of a shortage of available workers. "They did the investment they said they would do, they just didn't get the jobs."
Stutsman recommended the council find the company noncompliant, which is a preliminary finding pending a hearing with the company. A representative from Lippert was not present Tuesday, but one will have to address council during a hearing which may be held at its June 20 meeting.
The city can't request a refund on the $229,000 in taxes the company saved, said Development Director Mark Brinson, but council can terminate the tax phase-in if council members decide Lippert has not made reasonable efforts to meet the terms of the agreement.