Nappanee, Ind., City Council members on Monday took the first step in granting a proposed tax abatement to the new owners of Fairmont Homes.
“We don’t grant many tax abatements,” Mayor Larry Thompson told the group of men from Cavco Industries. “We’ve been fortunate, but at the same time we’ve had pretty good growth.”
Cavco, which manufactures mobile and park model homes, acquired Fairmont in May this year.
City attorney Brian Hoffer explained that the resolution was the first action necessary to granting a tax abatement and it was indicating support of the abatement and confirming that it would bring economic development, the Goshen News reports.
The proposed tax abatement involves two categories:
• $850,000 for manufacturing equipment and the abatement would be for five years beginning July 1 and ending Dec. 31, 2019.
• Information technology equipment in the amount of $80,000 and will be in effect from July 1- Dec. 31 of this year.
Hoffer explained the resolution for tax abatement follows the standards city officials set in 2003.
The next step would be to set and hold a public hearing on the matter and then a final determination on whether to move forward with the tax abatement.