The floundering economy has been difficult on local businesses, but most have continued to be good corporate neighbors and invest in their communities.
That was the message conveyed Monday night as the Crawfordsville Common Council approved resolutions to continue tax abatements for three companies.
Because Heritage is an automobile parts manufacturer, the downturn in the automotive industry has caused the company to not be in compliance with abatement regulations as far as employment numbers.
“They are doing everything they can to expand their business,” Councilwoman Heather Perkins said. “They want to maintain their numbers.”
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When the abatement was originally granted, it was estimated the company would by this time employ 299 people; the company currently has 196 workers.
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Crawfordsville Director of Planning and Community Development Brandy Allen said abatements were made up of employment and investment components, and that Heritage had always met or exceeded the investment requirement.
Four abatements were continued for Closure Systems International. Two of the abatements are seven years old, one is two years old and one is a year old.
While the employment numbers were below projections by eight, Allen noted the company had, throughout all the abatement years, “invested well over what they were required to.”
Abatements granted in 2006, 2007 and 2008 to RR Donnelly were also continued. Employment numbers at that plant also did not reach estimates; the projected number was 1,335 and the company currently employs 1,184.
Steve Seamans of RR Donnelly said things like electronic books and cuts in school funding had taken a bite out of the company’s business, but that all the equipment at the plant was running and orders were still coming in.
Seamans also pointed out that RR Donnelly had paid significant amounts of taxes even with the abatement. It is projected that the company will pay over $800,000 in taxes for the 2012-13 fiscal year.
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The abatements for Heritage and CSI passed unanimously. The abatement for RR Donnelly passed 6-1 with Councilwoman Jennifer Lowe dissenting.
http://www.journalreview.com/news/article_ae343e40-ca37-11e1-9919-001a4bcf887a.html
