Council nixes IAC abatement

A company that’s about to close the doors on its Greencastle plant won’t be getting out of town without paying its full tax burden.

The Greencastle City Council is making sure of that -- for the first time ever -- by denying approval of an industrial company’s request for tax abatement.

The Council voted unanimously Thursday night to adopt Resolution 2021-15, rescinding any futher abatements on projects for which International Automotive Components Corp. (IAC) was originally granted abatements for new equipment involved in 2011 and 2013 projects.

A brief update on the company’s status was provided by Kristin Clary, Greencastle/Putnam County Development Center executive director.

“I do know that IAC is in the process of closing its doors,” she said, noting however, that there has been no official statement from the company.

The first layoffs were due last Friday with a second round of layoffs Dec. 31.

“After that they will keep a skeleton crew there up until the middle or end of February,” Clary said, adding that while IAC is “moving along swiftly with layoffs,” there are “plenty of jobs for them (elsewhere) if they’re interested in continuing to work.”

IAC had “a lot of 65s-plus out there and 55-pluses out there,”she added of the age of its workforce.

Paperwork for the IAC abatements indicated the 2011 abatement would see the plant go from 421 workers to 466 with an investment of $8.8 million in equipment. In 2013, the abatement said the workforce would grow from 425 to 837 with $5.2 million invested in new equipment.

“Their employment numbers certainly fell short of that,” Clary told the Council. “At one time they had 650 to 700 employees but since I’ve been here (the past six years), I’ve seen a decline.”

IAC was in the ending stages of the abatement process, which is on a sliding scale that allows abatement-affirmed companies to pay only 10 percent of property tax the first year up to 100 percent in the 10th and final year.

With the city declining the IAC abatement, it must conduct a public hearing on the matter if IAC so wishes.

“We have to notify them,” Clary commented, adding that a hearing must occur within 45 days of notification.

“Hopefully we can get someone here (for the public hearing),” Mayor Bill Dory said. “We’ve tried to get ahold of people at IAC but there’s been some change in personnel.”

The denial of abatement years into a project has been previously unheard of in Greencastle.

“The only other time I’ve seen this happen,” Clary added, “was with POET at the county level.”

POET, the bio-refinery off U.S. 231 at Cloverdale, accepted the county’s decision and declined a public hearing since the plant was closing anyway.

Meanwhile, in another matter, the Council approved its share of funding the Development Center at $55,000 a year, an increase of $5,000. The same amount is paid by Putnam County. The money is paid out of EDIT dollars the city receives.

“We’ve enjoyed a long and prosperous relationship with the city and the county,” Clary said.

In a report Clary submitted to the Council, it was pointed out that the GDC has submitted nine requests for information from the state on potential industrial development projects.

Councilman Dave Murray pressed Clary for additional information, suggesting he was encouraged by the interest.

“Most were looking for existing buildings or rail service,” Clary said, noting Greencastle and Putnam County have nothing like that available.

“Depending on what they’re looking for, we at least submit what we’ve got,” she clarified. “The state will get back to us and ask for more information. At this point we have not made the final cut.

“The focus is on industrial development, and that’s Greencastle,” she allowed. “If they’re looking for 15 to 25 acres, we’ve got the land (100 acres) owned by the Development Center next to the Chiyoda plant and Eric Hayman’s property down at Cloverdale.”

Murray was also intrigued by Clary’s notation that GDC has met with two sustainable energy companies concerning the development of wind or solar power.

Clary said the companies are talking about a 3,000-acre footprint, including sites in Putnam and adjoining counties.

“It’s big,” Clary replied, noting the wind or solar farms might produce 200 megawatts of power. “It has potential, it looks like it might be promising. We continue to talk.”