IndianaLocalNews

Lippert Components failed tax abatement requirements because it lost employees instead of gaining them

(Sam Householder/Elkhart Truth)

Not only did Lippert Components fall short of its new jobs goal set by the city of Goshen, it actually lost jobs instead.

The Goshen City Council ruled that the Elkhart-based manufacturer was not in compliance with terms of a tax phase-in in 2013 by losing 240 jobs instead of adding 376 jobs, according to the Elkhart Truth.

The investment called for new painting equipment, lathes, and dust collectors valued up to $10 million. The investment was done, but the jobs didn’t come with it, according to Mayor Jeremy Stutsman.

Under law, the city can’t request that Lippert refund the $229,000 in taxes the company saved, but it can terminate the tax phase-in if council members feel Lippert didn’t make reasonable efforts to meet the terms of the agreement.

Councilman Jim McKee remarked that the city appreciates what Lippert does, “but we kind of, sort of have a business to run too.”

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2 comments

Tim G June 10, 2017 at 7:24 am

Wait, is the requirement to create jobs or hire employees? Because the jobs are probably there but if you can not get qualified applicants to fill them that is another problem altogether.

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NOTHING is FREE June 12, 2017 at 3:19 pm

This is what happens when you have the government (at any level) trying to plan the economy. It always ends badly.

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