It was good news for Lippert Components at Tuesday’s Goshen City Council meeting as council members vote 4-2 in favor of allowing the company to continue receiving tax phase-in benefits tied to three of its Goshen properties.
This story by John Kline originally appeared in The Goshen News.
The council arrived at its decision following a preliminary evaluation to determine whether LCI has continued to remain in compliance with a seven-year tax phase-in agreement established with the city back in 2013 connected to expansion plans for its properties at 2703 College Ave., 1701 Century Drive and 2475 Kercher Road.
A tax phase-in is a partial or temporary exemption of a company from having to pay property taxes with the express purpose of stimulating economic development. In LCI’s case, the approved tax phase-in was projected to save the company about $484,000 over the course of the seven-year agreement, according to the city.
Lippert officials, at the time the contract was signed, indicated they would be adding new manufacturing equipment, painting equipment, lathes and dust collectors at the three Goshen properties at a cost of about $10 million, resulting in the creation of up to 376 new jobs at the facilities in question.
As part of the tax phase-in agreement, Lippert agreed to submit yearly Compliance with Statement of Benefits (CF-1) forms to the city outlining the company’s progress toward reaching its investment and job-creation goals.
The form submitted Tuesday, which covers 2017, lists the company’s investment in new manufacturing equipment at the three locations at $7.88 million to date. The form also shows that the company has added 77 new jobs across the three locations – a number significantly less than the 376 new jobs promised when the contract was signed.