By Josh Weinhold, Truth Staff

jweinhold@etruth.com

ELKHART -- More than 49 new jobs will come here this summer as an automobile supplier expands with help from city government.

Molded Acoustical Products of Easton, which owns two buildings on Lexington Park Drive, was unanimously granted a five-year tax phase-in by the Elkhart City Council on Monday.

The Easton, Pa.-based company, which makes fiberglass insulation products primarily for the auto industry, will spend $750,000 to connect the two buildings. The move allows it to consolidate some operations and expands others. It expects to be filling positions by June.

The tax abatement will save the company $67,500 over the next five years.

It's the second phase-in the council has granted this year, and carried Mayor Dick Moore's approval. Though the decision rests solely with the council, Moore said his attitude about abatements has changed significantly since he's taken office.

"I cannot really just ignore a job," Moore said. "I can't do that. You can't have one in five of us unemployed and have the mayor ignoring these things."

During his 2007 mayoral campaign, Moore said he wouldn't let the city abate and bond itself into bankruptcy. That reluctance towards tax breaks has to shift, he said, when the city's facing such a difficult economic downturn.

Abatements are now one of the few tools city government has to encourage growth and expansion, Moore said. He's reluctant to use them when they put a burden on the taxpayers, he said, but that wasn't the case with the MAP abatement.

The city estimates the created jobs will generate $125,625 in tax revenue over the phase-in period, resulting in a net gain for the city.

"I can't think of anything better we can do at a local level," Moore said. "The times we're living in have certainly changed my mode of operations."

Had the company not received the phase-in, it would have moved some operations to its Easton facility, MAP officials said. Thus, the abatement saves 25 current jobs in addition to the 49 new ones it will bring.

Brian Gildea, Elkhart's economic development director, said the city first granted abatements in 1999 and has averaged about four per year since then.

Gildea, who works with companies throughout the abatement application process, said criteria hasn't changed dramatically since the economy got rougher. But the city now focuses less on the salary of the new positions, he said, and more on the overall number of positions.

"We'd rather have 10 jobs than 100 jobs if those 10 jobs had better wages," he said. "However, with the current situation, we have to look at jobs, period, in terms of the total number created."

The MAP jobs carry an average salary of $25,700, according to city documents, though 33 are production positions with a $19,000 average salary.

As part of the agreement, MAP also agreed to contribute 15 percent of its tax savings, or $10,125, to the city's tax abatement development fund.

The council in February approved an abatement for Lake Cable, bringing 15 to 25 jobs at a $42,500 average salary. The Illinois company will save $75,000 in taxes on its $1.9 million investment.

Moore said he wouldn't consider such a small addition two years ago, but now is willing to talk to any company about bringing their operations here.

"I'm quite certain I wouldn't be offering these things if we were living in better times," he said. "I approved them because they create jobs."

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