FedEx gets abatement from Kokomo, Delphi next

Kokomo Common Council Monday gave final approval to a 10-year tax abatement expected to bring a new FedEx Ground distribution hub to Kokomo.

The new $6 million FedEx Ground facility will be located near the intersection of Touby Pike and 250 North, on the northeast edge of the city.

FedEx officials said the 69,000-square-foot building, to be located in the privately owned Haynes Hi-Tech Industrial Park, will serve the entire region.

The current Kokomo FedEx hub, near the local Ivy Tech State College campus, will be closed when the new facility becomes operational, FedEx officials said.

City director of development Debra Cook said the project is expected to create seven full-time and about 49 new part-time jobs. FedEx officials said the local move is part of a nationwide expansion of its FedEx Ground business.

Kokomo Howard County Development Corp. president Jan Hendrix said Wednesday FedEx has already purchased more than 10 acres of land owned jointly by Don and Velma Thomas and the TODAC II LLC, the property owners for the remaining acreage for sale at the Haynes Park.

The next abatement decision for council members comes next month.

Delphi Electronics & Safety executives are hoping council approves an abatement which could bring an $160 million investment to Kokomo.

Company officials said last week Kokomo is one of several sites being considered for the investment, which would include new electronics manufacturing equipment.

Delphi Corp.'s abatement request also mentions the company intends to replace $100 million worth of equipment currently in place at the Kokomo operations.

Spokesmen last week could not give details on what equipment might be leaving - and what equipment might be taking its place.

The abatement request states the net assessed value of equipment at the Kokomo operations would increase by $60 million if the investment is made. The company would have four years to bring in the new equipment if the abatement is approved, and the company would only receive a tax break on the net increase in assessed value.

The company, which declared bankruptcy in 2005 and has yet to emerge, is facing a potential cash crunch as payments on pension obligations come due later this year. Delphi also owes the city of Kokomo about $8 million in unpaid property taxes.