GOSHEN —
Members of the Elkhart County Council Saturday approved two tax phase-in agreements for recreational vehicle company Forest River that promise to bring as many as 160 new jobs to the area.
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.
Millersburg Expansion
First to be approved Saturday was a resolution supporting an eight-year tax phase-in agreement involving Forest River’s Millersburg complex, 66135 Ind. 13, in Clinton Township. Dave Ogle, director of business retention and expansion for the Economic Development Corp. of Elkhart County, helped present the proposal for Forest River.
“I always want to reiterate our appreciation of Forest River being one of our premiere employers in the marketplace, employing well in excess of 3,000 Indiana or Elkhart County employees at their facilities, and certainly one of the higher paying facilities in the county,” Ogle said. “So we appreciate the opportunity to compete for their business.”
According to county attorney Craig Buche, the Millersburg expansion promises approximately $2 million in real estate redevelopment coupled with approximately $150,000 in new manufacturing equipment.
In addition, the company has indicated plans to hire approximately 120 new full-time positions. Such hiring is expected to lead to an annual increase in payroll of nearly $5.5 million.
“We recognize the fact that Forest River could build their plants anywhere,” said Elkhart County Council President John Letherman following the phase-in approval. “We’re thankful that you’re choosing to make significant investments in Elkhart County, which further cement Forest River in the community.”
In order to qualify for the tax phase-in agreement, Forest River has agreed to stay in operation at its Millersburg location for no less than 10 years. Should the company fail to meet its obligations under the phase-in agreement, Forest River would be forced to repay the county a prorated portion of the total real estate and personal property taxes saved as a result of the tax phase-in agreement.
Middlebury expansion
Also approved Saturday was a resolution supporting a five-year tax phase-in for Forest River’s Middlebury complex, 11555 Harter Drive, in York Township, that should bring 40 new full-time positions to the area.
In connection with this expansion, the company has indicated plans to invest approximately $1.25 million in new manufacturing equipment.
As for the 40 new full-time positions expected, Buche indicated that an annual increase in payroll of nearly $1.8 million can be expected.
As part of its tax phase-in agreement, Forest River has agreed that it will stay in operation for no less than seven years at its Middlebury location or face forfeiture of the agreement.
Local News
Related Photos
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The Elkhart County Council met at the county office building in Goshen Saturday and approved tax abatements for two Forest River RV plants. Sam Householder
Elkhart County Council approves tax breaks for Forest River plants
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