County council approved one tax abatement, tables another

Aug. 15--GOSHEN -- Elkhart County Council approved a tax abatement Saturday for a metal shaping business's $4 million investment and employment expansion.

Council approved the tax phase-in request for Dynamic Metals, which plans to invest $500,000 in real estate improvements at its facility at 54347 Highland Blvd., Osolo Township, before the end of 2019. It also plans to invest $3.5 million in new manufacturing equipment at the facility and add 35 full-time jobs to its current 115 positions, which would increase its annual payroll by more than $1.4 million.

Under the terms of the phase-in, the company must stay in operation at its Osolo Township facility for at least eight years. It must also demonstrate in regular reports to the county that it is meeting its benchmarks in investments and job additions.

Council members did not yet vote on another abatement request, from Chinook Motor Coach, because the company was not prepared to present on it, but might address it at their September meeting. The abatement would be on a total investment worth more than $2.5 million in land and equipment that would add more than 200 new jobs.

The investment includes $930,000 in real estate at the company's facility at 29449 W. U.S. 33, Baugo Township, as well as $1.48 million in new manufacturing equipment and $160,000 in new information technology equipment. The company expects its 207 new positions will add up to an annual payroll of $13.8 million.

Under the terms of the abatement, the company would have to remain at its Baugo Township location for at least nine years.

Las Vegas-based Chinook bought the 61,800-square-foot facility on U.S. 33 and have been cleaning it up to prepare it for renovation.

And council declined to vote on a $60,000 request from the Elkhart County Economic Development Corp. to a fund what President Mark Dobson called a "laborshed analysis." He has described the shortage of 20,000 workers under the county's current low unemployment rate as a challenging issue for businesses, who are forced to choose to automate more or to move to another area with higher unemployment.

Councilman Dave Foutz made a motion to approve funding for the study but did not get a second, so no vote was made. He remarked Monday that he wasn't surprised, since council members didn't think they were given enough information on the proposed study.

He added that it's one of many they get asked to fund and don't always see the results of.

"They didn't feel they were given compelling reasons why they should approve that," Foutz said. "We get a lot of requests for studies and council has become a little bit study-averse."

Also Saturday, council was asked to approve Harrison Township's additional appropriation of $500,000 to purchase a fire truck and make other upgrades to township properties. It was given to County Council for a yes or no vote because two members of the Harrison Township Advisory Board are also volunteer firefighters with the township and were not allowed to vote under state law.

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