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Navistar seeks more tax breaks after old deal failed

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The city of Indianapolis is prepared to give Navistar International Corp. another shot at a property-tax abatement after the Illinois-based manufacturer failed to meet the job requirements of a previous incentive deal.

Navistar division Pure Power Technologies LLC of Columbia, S.C., said it plans to create 250 jobs and retain 30 more by investing $19 million in new equipment at its casting plant at 5565 Brookville Road. Navistar previously operated the foundry but began closing it after Ford Motor Co. announced in 2009 it would move its diesel business to Mexico.

The company received $18 million in tax breaks from the city in the past decade, but agreed to repay $5 million in early 2010 for failing to retain more than 1,800 jobs at the plant. The huge east-side facility employed as many as 1,650 workers in 2005, but began mass layoffs amid the recession as the auto market tanked.

Still, the city is set to preliminarily approve another tax abatement because Navistar acted in “good faith” when recognizing that it fell short of meeting job commitments, said John Bartholomew, spokesman for the city’s Department of Metropolitan Development.

The Metropolitan Development Commission approved Navistar’s abatement request at its Wednesday meeting. Final approval could be granted July 20.

“They weren’t trying to fight us; that worked in their favor, so they’ve got a clean slate now,” Bartholomew said of Navistar. “This hopefully will prevent a huge industrial site from going off the tax rolls. This is a great opportunity to bring in new jobs.”

Joanne Sanders, Democrat minority leader of the City-County Council, said she is pleased the city is helping to save jobs but thinks it should have collected more from Navistar for failing to meet the requirements of the first tax abatement.

"To say they are starting with a clean slate is disengenuous," she said. The real clawback would have been close to $20 million."

Navistar has recalled 150 workers who were laid off when Indianapolis Casting Corp. stopped production in late 2010. Long-term plans include hiring 100 more employees by 2013 and investing $19 million in technology and supporting equipment.

UAW Local 226 members voted to accept a wage cut last year, breathing new life into the plant. It will have the ability to produce diesel structure components, including crank cases and cylinder heads.

All 250 workers should be hired within the next two years and earn an average of $21 an hour, Navistar said in its filing.



 

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  • not good value
    Navistar doesn't have a good track record of keeping jobs when given handouts. Look what they have done to the Chatham Assembly Plant after all the government handouts they received. It has been down just over two years and they haven't even paid the workers severence. They are not trustworthy.
  • Navistar needs to come clean with more facts
    Navistar needs to disclose ALL campaign donations to political candidates, and any organization that lobbies for them. They need to disclose any bonuses and excessive wages paid to CEOs and other company officers. Until then any special breaks by the tax payers would be just a coverup.

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  1. I am not by any means judging whether this is a good or bad project. It's pretty simple, the developers are not showing a hardship or need for this economic incentive. It is a vacant field, the easiest for development, and the developer already has the money to invest $26 million for construction. If they can afford that, they can afford to pay property taxes just like the rest of the residents do. As well, an average of $15/hour is an absolute joke in terms of economic development. Get in high paying jobs and maybe there's a different story. But that's the problem with this ask, it is speculative and users are just not known.

  2. Shouldn't this be a museum

  3. I don't have a problem with higher taxes, since it is obvious that our city is not adequately funded. And Ballard doesn't want to admit it, but he has increased taxes indirectly by 1) selling assets and spending the money, 2) letting now private entities increase user fees which were previously capped, 3) by spending reserves, and 4) by heavy dependence on TIFs. At the end, these are all indirect tax increases since someone will eventually have to pay for them. It's mathematics. You put property tax caps ("tax cut"), but you don't cut expenditures (justifiably so), so you increase taxes indirectly.

  4. Marijuana is the safest natural drug grown. Addiction is never physical. Marijuana health benefits are far more reaching then synthesized drugs. Abbott, Lilly, and the thousands of others create poisons and label them as medication. There is no current manufactured drug on the market that does not pose immediate and long term threat to the human anatomy. Certainly the potency of marijuana has increased by hybrids and growing techniques. However, Alcohol has been proven to destroy more families, relationships, cause more deaths and injuries in addition to the damage done to the body. Many confrontations such as domestic violence and other crimes can be attributed to alcohol. The criminal activities and injustices that surround marijuana exists because it is illegal in much of the world. If legalized throughout the world you would see a dramatic decrease in such activities and a savings to many countries for legal prosecutions, incarceration etc in regards to marijuana. It indeed can create wealth for the government by collecting taxes, creating jobs, etc.... I personally do not partake. I do hope it is legalized throughout the world.

  5. Build the resevoir. If built this will provide jobs and a reason to visit Anderson. The city needs to do something to differentiate itself from other cities in the area. Kudos to people with vision that are backing this project.

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