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http://thenewsdispatch.com/main.asp?Sectio...ArticleID=22680

Council OKs tax relief for new firm

Laurie Wink
The News-Dispatch

MICHIGAN CITY - When Thomas Engwert and his son, Scott, decided to relocate Current Midwest Co. from East Chicago, Ind., they thought of Michigan City.

"We lived in Michigan City awhile ago," said Scott Engwert, vice president. "We wanted to get out of East Chicago and more to a nicer community."

Engwert and local attorney Patrick Donoghue appeared before the Michigan City Common Council on Tuesday to request a 10-year real estate tax abatement for construction of a $456,000 plant at 601 Sheridan Ave., between 10th Street and Woodlawn Avenue. The resolution, introduced by councilmen Ron Meer and Joe Doyle, passed unanimously.

Current Midwest Co. assembles and sells large-scale air and water distribution systems for business and industrial buildings. Scott Engwert said their business has expanded during the past 10 years and employs five people. He said the company plans to hire additional workers as soon as economic conditions improve.

The Engwerts will construct a 7,500-square-foot wood frame pole building containing an office and shop area. Larson-Danielson has been selected to design and construct the plant on the 2.6 acre parcel.

According to Donoghue, the site is in a formerly active light industrial area on Michigan City's West Side. He said the relocated company "can help revitalize the area."

"This project will result in significant commercial activity in the neighborhood and should help encourage other new development on Sheridan Avenue," Donoghue said.


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Are they serious? A 10 year tax abatement for a company that employs FIVE PEOPLE . This company has expanded over the past ten years and NOW employs 5 people.

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I attempted to do some quick research on this and so far have not gotten any info. Were there requirements of specific future employment numbers in the near future or guarantees of staying here beyond their 10 year abatement? Why are they moving from East Chicago? Will they move from here when their tax abatement ends?

Doe anyone know a council person well enough to find out the complete story on this?

A 10 year real estate tax abatement is not something that should be given lightly. Homeowners (and renters who pay RE taxes through their rent) do not get a 10 year tax abatement (even with home offices that employ more than 5 people). Most of the businesses here did not get a 10 year tax abatement. Does the tax abatement have to be approved by the state also?

Michigan City, like many others, needs property tax dollars (for roads, schools, library, police, fire etc). Why give away the land dollars for such a small company, especially at a time when it appears our schools need help and they want to build a career center?

Honda had specific hiring numbers and many more work goals required to work a deal with Indiana when they were looking to locate in Greensburg, Indiana. That plant is already employing over one thousand workers (and employed many hundred construction and electrical/plumbing workers when they built it) and will have 2000 plus permanent workers when they transfer exclusive production of the Honda Civic GX to Greensburg IN later this year. That is an example of something possibly more worth a tax abatement.

I would like answers and if the answers are not satisfactory, where is the public indignation over this? Please tell me, since I am a newer MC resident, that this is not a personal/political connections deal.

The following sentence from the ND article caused some of these thoughts to infiltrate my mind.
""We lived in Michigan City awhile ago," said Scott Engwert, vice president. " "We wanted to get out of East Chicago and more to a nicer community."

Nicer because they don't have to pay property taxes?

Please if any one has more info. please let us all know.