La PORTE — With the annexation of State Road 39 North into the city of La Porte, a tax abatement that was originally approved through La Porte County will now be picked up by the city.
La Porte City Council, on June 16, with a vote of 5-0, approved the use of a tax abatement on personal property taxes created by the equipment purchases, as well as the Haynes International compliance form based on a reasonable effort to comply. Councilmen Drew Buchanan and Tim Franke were absent.
Previously, Haynes International, located on State Road 39, received a 10-year personal property tax abatement on Aug. 28, 2017, through La Porte County based on the number of equipment purchases the company was making, according to the resolution, as read by City Councilwoman Laura Konieczny.
With 39 North now annexed into the city limits, and with three years being left on Haynes International’s tax abatement, the city of La Porte, according to the resolution, plans on continuing the company’s tax abatement where the county left off.
Through work with the city planner, the resolution states that the company has already submitted the required application to be considered, “a statement of benefits,” as well as “filed an economic revitalization area statement of benefits for personal property tax deduction for its operation within the city of La Porte.”
Additionally, the resolution states that “the totality of benefits is sufficient to justify the deductions” that are being offered by Hayne International’s personal property tax abatement.
According to the resolution, Haynes International “intends to purchase manufacturing equipment with an approximate cost of $2,740,436,” as well as committed to the “hiring [of] up to 50 employees at full production.”
“... the deduction is in the maximum amount of $2,740,436 granted to Haynes by granting on new manufacturing equipment for a period of 10 years,” the resolution reads.
And where the company hasn’t fully lived up to their expectations in the terms of employment, City Planner Craig Phillips said Haynes International has made up for it in the “value of new manufacturing equipment.”
The amount of manufacturing equipment the company has purchased so far, Phillips said, “has far exceeded the expectations for the taxes that will ultimately be generated from this project.”
“... in consideration of some of the situations we’ve seen before, where there’s not total compliance [but] there’s a ... reasonable effort to comply ... this is a similar situation,” Phillips said.
For clarification, Phillips said the city will be finishing out the three years left on the tax abatement the company had agreed to with the county.
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