By Tim Vandenack, Truth Staff
tvandenack@etruth.com
GOSHEN -- Coachmen Industries will get a break on its property taxes, the second firm to get such a deal from Elkhart County authorities this year.
The company is planning a $3.5 million expansion at its plant north of Middlebury that will create 234 jobs within three years. It asked for a partial property tax abatement to assist in the process and got it Saturday from the Elkhart County Council.
As per the deal, Coachmen will save $135,661 in local tax payments over the 10 years of the proposed break, though it will still be liable for $91,088 in payments in the period. In turn, it has promised to create 234 new jobs within three years, up from 38, bolstering its annual payroll by $9.25 million.
Coachmen Chief Executive Officer Rich Lavers said Saturday that the company is already moving ahead with its plans. It could start hiring new workers next month.
"We're not standing still," he said. "We're moving forward."
As part of the expansion, Coachmen, which no longer makes recreational vehicles, plans to bolster production of specialized busses, "high-tech green" cabinetry and a new line of "speciality" vehicles. The $3.5 million is to pay for new machines and other equipment needed to pave the way for the change.
A public hearing followed Lavers' comments, but no one sounded off. The council approved the tax break in a unanimous voice vote, with John Letherman, the council president, abstaining because of his private-sector work as a Realtor with Coachmen on unrelated property deals.
Saturday's action, preliminarily approved by the council last month, paves the way for up to $3.15 million in state tax credits and training grants for Coachmen.
If Coachmen doesn't comply with terms of Saturday's deal it could be required to return some of the abated taxes to Elkhart County. The longer it complies, however, the less it would be required to return.
The council granted Jami, a manufacturer of office chairs, a partial tax break earlier this year in connection with its expansion plans. On both occasions, officials cited high unemployment as a key factor in their decision.