By Tim Vandenack, Truth Staff
tvandenack@etruth.com
GOSHEN -- Another Elkhart County company is looking to expand, creating 94 jobs, and again, the Elkhart County Council is leaning toward granting a tax break to make it happen.
Tim Stephens, president of Atwood Mobile Products, appeared Saturday before the Elkhart County Council, seeking approval of a five-year partial property tax abatement on the firm's planned $5.6 million expansion. The body granted its preliminary stamp of approval -- mindful of the high jobless rate here -- though it will be subject to a public hearing and final consideration next month.
In related action, the council, as expected, granted final approval to another five-year partial property tax abatement request, this one from Jami, an office chair manufacturer near Middlebury. The firm is planning a $480,000 expansion that would create 117 new jobs.
The news comes amid rising unemployment in Elkhart County, hit hard by the economic downturn, and Dorinda Heiden-Guss, head of the Economic Development Corp. of Elkhart County, said she was thrilled. Between them, the two companies would create 211 new jobs, Atwood's within two years and Jami's within four years.
"It's positive in these tough economic conditions," she said.
Atwood, which manufactures parts for the recreational vehicle industry, announced the closure of its West Union, Iowa, facility last month, saying it would consolidate that operation at one of its other facilities. Elkhart County, home of Atwood's corporate headquarters, seems to be the locale it has settled on, and Stephens said the expansion here would occur at the firm's Charlotte Avenue and Ada Drive facilities.
Atwood currently has 253 employees here with a payroll of $6.2 million and adding the 94 workers would boost that by $2.3 million.
The firm would save $171,269 in property taxes over the five years of the abatement, only on the estimated $5.6 million in improvements it plans as part of the expansion. It would still be liable for $99,269 in taxes in the period on the new development, while the tax burden on Atwood's pre-existing facilities would remain the same.
Jami -- owned by the JSJ Corp. of Grand Haven, Mich. -- currently employs around 120 and the 117 new employees would boost its payroll by $6.4 million.
It stands to save $23,000 in property taxes on its expanded facility over the five years of its abatement. The firm would still have to pay $28,000, though, and property taxes on its existing facilities also would not be impacted.
Under terms of the abatements, both firms would have to remain in Elkhart County for 10 years or they'd have to return all or a portion of the property taxes abated. Jami would also be obliged to create 85 jobs within two years and boost its payroll by $4.4 million while the other proposed terms for Atwood weren't immediately available.
The local incentives potentially pave the way for state incentives for both firms.