Tipton County OKs $13M bond to help sell Getrag plant

May 19, 2010

The Tipton County Council on Tuesday unanimously approved $13 million in incentives intended to help land a solar power firm interested in buying the empty Getrag plant on U.S. 31 near Kokomo.

The money will be used to create a bond the county will give to the trust of contractors that owns the plant, allowing them to lower the cost of the abandoned factory without losing money,  according to the Kokomo Tribune.

The plant, where transmissions were to be built, has stood empty since 2008. Getrag Manufacturing LLC filed for bankruptcy and halted work on the plant after the company's partnership with Chrysler LLC collapsed. The facility has never been used.

A federal bankruptcy court in Detroit turned the facility over to a trustee group consisting of contractors still owed money on the project. The court set a minimum price of $45 million for the property.

Tipton County plans to use Tax Increment Financing to pay for the bond.

The site reportedly is one of two locations the unnamed renewable-energy firm is considering to manufacture solar panels. The newspaper said the company could create up to 850 jobs.

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