Tipton County options more land to sweeten deal Chrysler-Getrag deal

The Tipton County Economic Development Foundation is looking to option more land near the intersection of U.S. 31 and Ind. 28 in an attempt to lure a proposed Chrysler-Getrag transmission plant to the county.

The Tipton County Economic Development Foundation executive board voted Thursday to gain purchase options on an additional 35 acres.

The EDF already has options on 231 acres of property for the possible $560 million plant expected to employ 1,200 people in the manufacturing of transmissions.

The EDF would pay an average of $20,000 per acre for the property. At that price the 266 acres would cost $5.3 million.

Bill Keir, director of the Tipton County Economic Development Corp., confirmed Monday that the additional land is being sought.

"The prospect requested that the property be squared up," Keir said.

The desired property includes two houses along the northside of Ind. 28, east of U.S. 31, and two 16-acre parcels to the north. One of the parcel runs along the railroad tracks.

"We need the property along the railroad tracks for utility needs and easements," Keir said. "It makes it a little clearer and easier."

Keir said Tipton County officials will purchase the property through a Tax Increment Financing (TIF) Bond and then give the land to Chrysler-Getrag.

Tipton County is in the process of creating an Economic Development Commission which could designate an area as a TIF District.

Creation of a TIF district allows a governmental entity to borrow money to purchase land or make infrastructure improvements to an area designated for development.

The bonds are repaid by the additional tax revenues generated by improvements to the property. Other government entities continue to get the revenues generated by the property at its value before improvements are made.

Keir said the county has also agreed to provide utilities to the site, but didn't know the potential cost.

Jason Hester, director of economic development in Kokomo, would not discuss details of the city's offer to Chrysler-Getrag.

"We have enough available land to meet their demands," Hester said.

Tipton officials said they learned from the Indiana Economic Development Corp. that the prospect is now looking at a potential site in Michigan.

Getrag has an engineering center which employs 50 people in Sterling Heights, Mich.

Hester said he has not heard that a site in Michigan was being considered.

He said generally speaking, to get incentives from the state, a company has to have an offer from another state in hand. He said sometimes a company will do that to get a better incentive package.

Indiana and Michigan officials didn't return telephone calls seeking comment on a possible incentive package for a Chrysler-Getrag plant.

The original plan was to run water and sewer lines from the city of Tipton to the site.

Keir said utility needs for the potential plant have changed several times since the project was first proposed. At first it was believed that the plant would need up to 2 million gallons of water per day, that number has dropped to 1 million gallons daily.

He said an option is now digging wells on the property to supply the water needs of the transmission plant and construction of a package sewage treatment plant on the site.

"We would want a package treatment plant that could be expanded to accommodate future needs," Keir said.

The county could be asked to pay for the installation of wells.

David Reep, manager of the Tipton City Utilities, refused to comment for this story.

In January, Keir said the prospect needed 125 acres for the development. He said the additional acreage could be sold by the county to a private developer if all the options are exercised.