City tax abatements good for 2,440 jobs, $111 million payroll

The annual assessment of city industries’ tax abatement compliance was purely a positive experience for the Greencastle City Council this year.

Coming on the heels of denying abatement compliance resolutions the past two years for IAC (International Automotive Components), the action at the July Council session was smooth sailing. IAC closed its doors in 2021 and its old building on Fillmore Road is now being occupied by additional Crown Equipment Corp. operations.

In its annual review of statements of benefits from local companies that have been awarded tax abatement, City Council members witnessed some impressive numbers shared by Greencastle/Putnam County Development Center Executive Director Kristin Clary.

Covering 21 abatements -- six representing real property (real estate) and 15 personal property (equipment) -- via calculations based on CF-1 forms submitted to City Council for current tax abatement projects, the creation of more than 2,400 jobs with a payroll in excess of $111 million was reported.

According to Clary, the abatement figures include:

-- Total number employed: 2,440.

-- Total annual payroll for those employed: $111,194,260.

-- Average annual wage per job: $45,571.

-- Total real property capital represented (six projects): $54,057,072.

-- Total personal property capital represented (15 projects): $211,714,284.

Individually considering the statement of benefits involved in those abatements, the City Council unanimously approved continued abatements for Premium Brands Service (formerly Ascena Retail Group), Chiyoda USA, Crown Equipment Co., Heartland Automotive and Phoenix Closures.

Clary praised Ascena for “gangbusters growth” after it has hired 708 workers, more than doubling its 308-person estimate with a $31,295,000 payroll.

Chiyoda, meanwhile, drew “kudos for working real hard” in increasing its labor force, Clary noted. Buoyed by its role in supplying parts to Subaru at Lafayette for its new Crosstrek SUV, Chiyoda is up to 319 workers, topping its estimate of 260 with an $11.4 million payroll.

“They have really tried to step up their game, and it’s been noticed and appreciated,” Councilman Dave Murray praised.

Clary called Crown Equipment “another overachiever,” with 860 workers employed while 667 were forecast after the latest abatement and a move into Crown’s third factory facility in town. Crown reports an annual payroll of $38.3 million.

Heartland, meanwhile, is at 426 employees and “would love to find an additional 30 to 40,” Clary said. Heartland shows an annual payroll of $22.2 million.

And finally, Phoenix Closures has grown from 90 to 127 employees, exactly the number it forecast with its 2021 equipment abatement request. The hirings are good for a $7 million payroll.

Sharing the five-company totals listed above, Clary commented that the local businesses have all hired “good employees and are doing well.”

In other business not included in a previous story, the Council:

• Learned that in its annual letter submitted to the county, the city is again requesting 100 percent of the tax increment generated within the Greencastle Economic Development Area for 2023, payable 2024.

• Heard Chris Myers of Area 10 Agency on Aging request the Council double its annual $15,000 contribution to the operation of the Rural Transit service. The money is paid out of EDIT funds, Mayor Bill Dory noted.

Putnam County is also being asked to increase its contribution in a like manner. Just under 12,000 trips were made in the four-county area (Putnam, Owen, Monroe and Lawrence) with Putnam County comprising 34 percent of that traffic, Myers said.

Councilman Darrel Thomas noted that Putnam ride totals routinely rank first or second in the four-county area. “That’s the demand,” Thomas said.

Council President Mark Hammer reasoned that the larger population counties don’t use the service as much “because they have other options.” Those alternatives include Uber availability and municipal bus service in Bloomington.

“Given the demographics of Putnam County, this is a very vital service,” Councilman Murray commented.

While Myers said Area 10 has not asked DePauw University for a contribution to its operations, Councilor Veronica Pejril noted that there are four stops on campus and she would “certainly encourage” participation by the university in the Rural Transit funding.

No action was taken at the meeting on the increase request, however, Council member Stacie Langdon said she “would like to see us increase it in 2024, given the way the price of gasoline has gone up.”

Additional funds would also help fund insurance and repair costs and a pay increase for drivers.

Council members Hammer, Murray, Thomas, Langdon and Pejril were joined for the July meeting at City Hall by Cody Eckert. Councilman Russell Harvey was absent.

The City Council will next meet in regular session at 7 p.m. Thursday, Aug. 10 at City Hall.