By ROD ROWE, Goshen News Staff Writer
When the Elkhart County Council hears a request Saturday for a tax abatement for a new bakery in Osolo Township, they will have the support of the three County Commissioners.
The commissioners, at their weekly claims meeting, today heard a presentation by Bill Bradley, president of the
Economic Development Corp. of Elkhart County, and representatives of a “site selector” firm seeking property for
Allen Foods, maker of Entenmann’s, Thomas English Muffins and Boboli pizza crust products.
Representatives of DuCharme, McMillen and Associates, Indianapolis, said the firm wants to build a new facility in the Remington south industrial park, south of C.R. 6 near C.R. 113. The plant would amount to about $16 million in improvements and add another $33 million in equipment. The company wants to locate on a 28- to 30-acre site in the industrial park, which is being developed this winter.
The tax abatement and phase-in would amount to the firm paying 10 percent of the property taxes due each year over the next 10 years.
But the DuCharme, McMillen representatives stressed that even with the requested tax abatement, the firm would still pay $900,000 in taxes on personal property and $1.5 million in property taxes over the 10 years. And employee taxes would total $45,000 on a $3 million payroll, said Mike Duff. The firm now projects hiring more than 100 people.
Tom Byers, county administrator, pointed out that if the county officials granted a tax abatement, the city of Elkhart might still collect $91,000 per year because of the required “compact agreement” to provide city water and sewer to the industrial area, which is just outside the Elkhart city limits.
“I’d recommend Elkhart set aside their requirement for paying for the compact agreement,” Byers said.
Terry Rodino said he has begun a discussion on the subject with Elkhart Mayor David Miller. He said he hopes to discuss the issue again this month.
“We encourage diversity in our manufacturing base. We are not inclined to grant phase-ins, but we may for companies bringing in relatively high-paying jobs,” said Commissioner Mike Yoder. He said the commissioners can tell the County Council “we’d be tempted if we had the ability and the mechanics in place.”
The group and a representative of the employer will meet Saturday with the seven-member county council.
Byers was already asked last week to work with the developer, Wagner Development Co., to have the south industrial park designated a Tax Incremental Financing district.
Bradley said having a TIF in place there may allow the company to receive state-funded development incentives.