Council grants tax abatement

2009-06-03 / Front Page

Tax break less than requested
By Debbie Lowe Staff writer

A tax abatement request by The Andersons for an expansion project at the Delphi plant was granted by the Carroll County Council after the necessary public hearing Tuesday morning. Two residents, Galen and Carl Perry, objected to the tax break for the company.

The length of the abatement period granted, which is when the county coffers will receive less tax revenue than would be received without a deferment, was less than requested by The Andersons. Information requested at a previous meeting was supplied in written form by Carroll County Economic Development Director Daryl Smith and The Andersons representatives Bob Marlow and Russ Mitchell.

Estimates based on the 2007 (pay 2008) tax rate for Deer Creek Township of .02485, the anticipated full additional tax revenue from the project is $31,957 per year. The abatement is only for the additional project; current property and real tax revenues will stay the same. In the first year of the abatement, no revenue from the project will be realized. The second year will produce an estimated total of $5,322. Tax revenue will increase on a graduated scale until full tax is realized in seven years for real property (the bin) and three years for personal property (the equipment).

The Perrys objected to the county's loss of revenue for the abatement period and the potential for an increase in requests for like-considerations.

Mitchell said the Delphi plant was established 35 years ago. Marlow said he began working there in 1975. Mitchell said although no new facility jobs will be created with the tax break, the measure holds the expectation of job security for the current workers.

He further explained local contractors will be solicited for construction, electrical and other work to be done as the new grain bin is built. Marlow said some area contractors will not be able to handle the scope of the project, however he thought the electrical work will be done by workers from both Carroll and Tippecanoe counties.

Council member Ron Slavens added that the new grain bin will hold an additional 3/4 million bushels of corn, which will generate more county revenue. He said when all grain bins are full at a facility, the price for product drops.

"The tax line can make a difference in where you decide to make more investments," Mitchell said.

The next council meeting will be June 23 at 3:30 p.m.

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