[Ang]

http://thenewsdispatch.com/articles/2012/0...7f237882084.txt

2012 tax abatement report approved

By Lois Tomaszewski
Staff Writer

Published: Thursday, July 19, 2012 5:07 PM CDT

MICHIGAN CITY - Local businesses and industry which receive annual tax abatements have invested more than $17 million in the local community through jobs, manufacturing and real estate. The Michigan City Common Council approved the 2012 tax abatement report Tuesday evening, granting another year of relief to 18 companies.

Kevin Kieft, director of the Michigan City Economic Development Corporation, presented the report to the council reflecting which companies will have continuing abatements for the 2012 tax bills to be paid in 2013. In Michigan City, eligible businesses are granted a ten-year abatement on property and personal property investments they make in the community. The tax benefits reduce as the years go by, Kieft said.

This incentive program has been part of the Economic Development Corp's strategy since the EDC's inception in 1996. The most benefits are reaped in the first year of the investment, with each successive year's benefit reduced ten percent per year.

In the report, abatements date back to 2003, and include Federal Mogul, which has announced plans to close its Michigan City operation. With two years remaining on the initial 2004 nearly $2.8 million manufacturing investment, Kieft urged the council not to amend the abatement for the company, despite the announced closing.

"We are working with them," Kieft said. "Don't pull the remaining two years while we are still working with them. It would send the wrong message."

The report is part of the MCEDC's contract with the city. Kieft said his office compiles the information annually and presents the information to the city council for approval.

According to this year's report, 22 tax abatements were granted to 18 businesses. Six of these were on manufacturing investments totaling $11.2 million and the remaining were real estate investments of $6.2 million. An increase of 163 jobs has been realized, with a loss of 215 jobs at Federal Mogul.

13 of the 22 abatements were awarded prior to 2006. Only three have been awarded since 2011, and these total $2 million in manufacturing investment and $1.3 million in real estate investments. Two of the most recent ones have been to Hearthside Foods and one to the Michigan City Paper Box Company.

In April, the City Council granted two tax abatements to local manufacturers. These will appear on next year's report. KTR Corporation was approved for an abatement of $1.4 million in manufacturing and technology improvements. In an article in the News-Dispatch published on April 18, Kieft said the tax abatement was a competitive move to keep the company from relocating out of state and taking 63 jobs away from the community.

Sager Metal Company received approval for an abatement on $430,000 to improve manufacturing and information technology at the business.

[Southsider2k12]

I feel they should pull the abatement from ANCO. "Sending the wrong message" was done when they said they were leaving Michigan City for Mexico. If they don't want to be here, don't subsidize them. There are plenty of businesses who do want to be here who could use that money.

[taxthedeer]

I feel they should pull the abatement from ANCO. "Sending the wrong message" was done when they said they were leaving Michigan City for Mexico. If they don't want to be here, don't subsidize them. There are plenty of businesses who do want to be here who could use that money.

It looks like Michigan City politics rivals that of Chicago's, makes no sense whatsoever!!!!!!!