Ten months after a public hearing on the request was held, the
Burns Harbor Town Council rejected ArcelorMittal’s petition for 10 more years of
tax abatement.
Vote Wednesday was 4-1 with member Mike Perrine voting no.
Mittal’s current abatement on new personal property investments ends on March 2,
2013.
The company had estimated annual capital expenditures of $10
million to $20 million or more in the coming decade to install, upgrade and
modernize equipment.
In return for an extension, Mittal would have paid approximately
$2.5 million to retire the town’s outstanding sewer bonds and reimburse payments
already made in 2011/12.
There was no preliminary discussion as council member Gene Weibl
moved to reject the six-page abatement agreement and Greg Miller seconded. A
vote immediately took place with Jim McGee and Jeff Freeze joining the majority.
Both Weibl and McGee are employed by Mittal.
...
In 2003 when the initial 10-year abatement program was approved
for then-owner ISG following the Bethlehem Steel bankruptcy, there was an
overriding benefit for the tax breaks, said Miller, but nine years later the
cost vs. benefit equation for the town has changed significantly.
...
Town financial advisor Dan Botich of Cender & Company was
present Wednesday. After the meeting he said, based on Porter County tax
records, for the years 2007 payable in 2008 through 2011 payable in 2012 alone,
Mittal realized $9,612,613 in total tax savings due to the current
abatement.
Assessed valuation deductions at the Burns Harbor plant ranged
from a low of $83,014,910 for 2007 to a high of $131,904,590 for
2010.
