Posted on 07/06/2017 3:22:10 PM PDT by 2ndDivisionVet
MISHAWAKA — With an 8-1 vote, the fast-growing company Lippert Components won the city council’s approval Wednesday of 10-year tax abatements for an expansion that promises to create 200 new jobs.
But that stirred talk about whether tax dollars should be used to help such a successful corporation.
“It gives us access to hopefully more employees in Mishawaka,” company executive Todd Blyly told The Tribune before the meeting. “It’s a tight labor market, especially in Elkhart.”
Lippert, which supplies parts for recreational vehicles and boats, would invest up to $9 million as it renovates and uses the former AM General warehouse at 400 S. Byrkit Ave. and a property to the east. Lippert would immediately add 80,000 square feet to the Byrkit site, with the chance of adding more in the future, Blyly said.
Lippert is adding new product lines and running “out of space,” said Blyly, a financial controller for Lippert.
Bryan Tanner, D-at large, said that, while the extra 200 jobs seems like an “easy win” for the city, he was voting against the abatement, citing Lippert’s own success.
The company reported revenue of about $1.7 billion in 2016.
Tanner said he appreciates the company’s growth in Mishawaka but added, “I don’t think they need help from taxpayers.”
But City Planner Ken Prince noted that the company has “the opportunity to grow anywhere in the world.”
Mike Compton, D-5th, who voted for the measure, said he doesn’t like it when corporations make cities compete with their taxpayer dollars: “I don’t like being in competition with other communities for jobs.”
Ron Banicki, D-6th, and Joe Canarecci, D-at large, supported the abatement, pointing out how Elkhart is so “saturated” with recreational vehicle businesses that, in Banicki’s words, “It’s got to flow our way.”
The city estimates that the real and personal property tax abatements could save Lippert more than $1.5 million in taxes over the next 10 years, leaving the company to pay more than $1 million.
Lippert officials report that the new jobs would be warehouse, clerical and skilled work, with wages ranging from about $14 to $32 per hour.
The expansion project would add a distribution center, a service center for recreational vehicles and a call center. That will relocate some of its operations that currently are in South Bend and Elkhart, including 247 jobs that officials say would be preserved, though moved to Mishawaka.
Blyly said Lippert’s 600,000-square-foot facility in South Bend would continue to operate. The company employs about 8,600 worldwide, including about 7,200 in northern Indiana, he said.
If anything breaks on your RV, you will probably find Lippert makes a replacement part.
I hate these special tax abatement deals for politically connected corporation. Much rather have a general tax cut for all business property, even if it’s small, than a big break for someone who’s greased lots of palms.
The problem is that if they don’t offer it, a thousand other cities do towns will. Some could be just down the road, ( South bend, Mishawaka, goshen, etc)
But here we have a company proposing to bring new taxable value on line. Under these circumstances even a 100% abatement on the new taxable value leaves all other taxpayers in their original economic position. So the prospect of new local manufacturing jobs may be a fair basis for awarding an abatement. Too many variables for me to know for sure.
But we all add taxable value to our properties. At least we should through proper private property husbandry over time. We can't incentivize all of it through abatements and still rely on a property tax system.
For me, a partial abatement for a limitd term is as far as a local government should go. Beyond that, a community needs to deal from the basic structure and assets of its location, labor force and infrastructure.
Trump has not yet been nearly aggressive enough, on bringing back American jobs. in my view.
Just yesterday, there was a new figure out, with approximately 150,000 new jobs this month.
Look at everything you buy every single day. If it’s not food, or gas, it is very likely made in China.
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