From the Goshen News:
Tuesday’s City Council meeting will host three public hearings on two “economic revitalization areas” and an additional appropriations ordinance, according to the City Council budget released Friday.
Members of the public are welcome to speak on the proposed designations of economic revitalization areas (ERAs) concerning Kinro Manufacturing Inc. and Forest River Inc., two businesses tied to recreational vehicle manufacturing.
If these areas are designated as ERAs, the businesses are able to apply for tax phase-ins, or tax abatements, which will give the companies breaks on property taxes for a set number of years. According to a public notice published before the meeting, the public can view a map of the areas at the Elkhart County Assessor’s Office at 117 North Second St.
Kinro applied for the tax phase-in in connection to the installation of new manufacturing equipment at their 1201 Eisenhower Drive South plant, according to the resolution the City Council members will vote on Tuesday night. Companies can apply for ERA designation if they are completing a redevelopment or rehabilitation project, including installing new equipment, per a section of the Indiana code.
Kinro officials estimate the cost of the new equipment to be $2.25 million, and will employ 60 new employees because of the project, according to their application. Though their property taxes will be cut for the five years of the proposed tax phase-in, the company will still have to pay 15 percent of what they would have paid in property tax directly to the city, which will be deposited in the Redevelopment Non-Reverting Operating Fund, according to the agreement.
The proposed tax phase-in for Forest River Inc. involves more legislation, including an amendment to a 2004 resolution, before the council could approve it, according to discussion from Tuesday’s Redevelopment Commission meeting.
A resolution passed in 2004 said that no companies within a certain area could apply for a tax abatement, including Forest River, in lieu of immediate annexation. Forest River needs to have this resolution amended — specifically striking a line that prohibits companies lying within a tax increment financing district from applying — so that they can apply for the tax abatement.
The tax abatement for Forest River is also for new manufacturing equipment and redevelopment, total project costs adding up to $4.3 million and creating 160 jobs, according to the agreement. The tax abatement would be for seven years, and Forest River would be required to give 15 percent of what would be the full property tax value to the city of Goshen.
The third public hearing at Tuesday’s meeting will focus on an additional appropriations ordinance that would approve the loan of $150,000 for the purchase of Fidler’s Pond, among other funds. An agreement between Goshen Mayor Allan Kauffman and the Park Board will be voted on at tonight’s Park Board meeting, which will be held at 5:30 p.m. at the Rieth Interpretive Center.
http://goshennews.com/breakingnews/x1144046016/GOSHEN-CITY-COUNCIL-Revitalization-the-focus-of-public-hearings
