Tipton Getrag site plan approved; production could start in February 2009

TIPTON - Although there was no confirmation by German manufacturer Getrag, a Michigan architect said the company is committed to the project of building a $560 million transmission plant that would employ 1,200 workers.

Before a full conference room Thursday in the Tipton County Courthouse, the Tipton County Plan Commission approved a site plan for construction of a Getrag Corporate Group plant, in a joint venture with DaimlerChrysler, at the intersection of U.S. 31 and Ind. 28.

Richard Torri, with the architectural firm of Harley Ellis and Devereau in Michigan, said Getrag is committed to the project.

He noted Chrysler's announcement on Wednesday that it will construct a new engine and axle plant in Michigan is relevant to the local project.

"The Chrysler announcement ties into this," Torri said. "There are plans to build a new minivan by 2010 with transmissions from Getrag. The first transmission would be produced in February 2009."

Plans at the site include future expansion with the intent to produce between 400,000 and 500,000 transmissions annually.

"[Getrag] wants to get into the U.S. market," Torri said. "Beyond Chrysler and supply transmissions to Toyota and Honda. They want this to be a showplace, because it is their first production facility in North America."

Mike Cline, plan commission member, asked why county officials were moving ahead with approval of the site plan when there are no assurances the company will locate in Tipton County.

Commissioner Tom Dolezal, who is also a member of the plan commission, said the company is reaching the point of committing resources and want to make sure the community wants it.

"It is costly for a company to move forward with a project of this size," he said.

Torri said there are 28 bid packages for various construction work at the site are being formulated for the project. He said the bids for the purchase of structural steel were due Thursday and would be awarded in less than two weeks.

He said a bid package for site grading and leveling off the property would be awarded in the near future.

"There is a definite commitment," Torri said. "The bid packages are specific to this site."

Torri said he couldn't comment on when Getrag would make an official announcement on a location. It has been speculated that Tipton County and Kokomo are the finalists.

Following the vote to approve the site plan, Bill Keir, executive director of the Tipton County Economic Development Commission, said this is another step in the process.

Jim Carter, plan commission executive director, said site work could begin at the location once the land is purchased and the necessary permits are approved.

Tipton County resident Tim Hensley said he wasn't opposed to the project, but did oppose the location.

He said Torri's presentation of the site plan was not enough for the county to approve it.

"The county needs to spend more time looking at the plans," he said. "We shouldn't make a quick decision."

Hensley asked if the 1,200 jobs would be union or non-union.

Carter said it was his understanding that they would be union jobs, with workers represented by the United Auto Workers.

Rita Gall, who is selling 103 acres on the proposed site, asked commission members to delay a decision for several months.

She said the family took an option on their property last November and the listed buyer was Carbex LLC. Gall said that option was transferred to the Tipton County Economic Development Foundation.

"We were lied to in the very beginning," Gall said. "We were not told it was for a large manufacturing plant. We didn't fully understand what was going on and tricked in this. It should never have happened."

Gall said there is a handful of people in Tipton County with too much authority making decisions for the entire community.

"They are buying land and giving it to a foreign company," she said. "A project this large should have input from everyone. A plan like this for a few houses takes months to approve."

Mathew Stroup, whose family also optioned land for the project, said at no time were they misled about who was buying the option.

"This is a very small percentage of the land in Tipton County," he said. "The main point is the 1,200 jobs.

"We have had numerous offers in the past for the property," Stroup continued. "We asked about the number of jobs and the impact on the environment."

Ryan Bergman, whose family farms 260 acres to the east of the project, expressed concerns about drainage.

"How are you going to drain south to Dixon Creek, which is already overloaded?" Bergman asked of drainage plans for the site approved last Monday by the Tipton County Drainage Board. "There is a county drain that runs through our property, which is overflowing."

Phil Beer, with USI, a consulting firm out of Indianapolis, who works under contract as the Tipton County engineer, said he has reviewed the site and drainage plans for the site.

"We have been in contact with the designer," Beer said. "We provided them with the county requirements. We continue to work with local farmers that the outlets for the drainage will be adequate."

In regards to traffic concerns as a result of the plant, Beer said USI has been hired by the Indiana Department of Transportation for improvements to Ind. 28 for three-quarters of a mile to the east of the intersection with U.S. 31.

Plans include widening Ind. 28 to three lanes with a left-turn lane into the plant or the possibility of a traffic signal at the entrance into the plant for employees, he said. That entrance would be on the west side of the location.