By BOB SHRALUKA
WZBD.com
A request for a pair of major tax abatement by one of Decatur’s leading businesses was approved by city council Tuesday night, but prompted a lengthy discussion about the abatement process.
Hoosier Pattern officials were on hand to request a 10-year real property abatement and a five-year personal property abatement.
Owner/President Keith Gerber gave details of a recent expenditure of $1.7 million for a pair of new sand printers, for which the abatements are sought.
“I’ve been grooming an aerospace customer for two years,” Gerber told council. “But when he called and was ready, we didn’t have the capacity (needed).”
So Gerber purchased the two new sand printers.
“It was kinda scary,” Gerber said, referring to the $1.7 million expenditure. “”But I feel it’s an investment for the community and for our employees.”
He noted that Hoosier Pattern obtained its first sand printer in 2013 “and now, 11 years later we have seven.”
He added that the company has over 200 customers to whom it is supplying sand printer products.”It’s 60 to 70% of my business,” he remarked.
Asked by Councilwoman Jenny Bowers-Shultz if he had a contract with the customer, Gerber said he did not. “But I think we’re in the driver’s seat. It’s ours (contact) to lose. They are very happy with what we do”
A sticking point was the formal request for the abatements. Normally, with a 10-year abatement, no taxes are paid the first year, then a sliding scale kicks in: a 90% tax savings the second year, then 80% and so on through 10 years.
For a five-year abatement, the increments are 20% each year.
With the Hoosier Pattern request, the increments were different and that was the sticking point. Local attorney Audra Snyder, who attended the meeting, said the request was prepared by Adams County Economic Development Director Colton Bickel and she wasn’t sure why had had veered from the normal pattern.
After considerable discussion, some of which initially proposed withholding a final decision, it was decided to give the okay to the Hoosier Pattern request, then develop a standard process for all tax abatement requests in the future.
“I really feel moving forward we need something concrete on how we do this,” Bowers-Shultz said. “It’s something we need to consider.”
“There is so much to consider,” Councilman Scott Murray added. “It’s not like he’s (Gerber) going to keep the money. He has done a lot for the neighborhood.”
“I’ve never liked how we do this, how we pick and choose,” Mayor Dan Rickord said.
Councilwoman Abby Wilder said she “would be comfortable if we do this (approve), then going forward we get something concrete.”
So a declaratory resolution was approved, paving the way for a confirming resolution – final approval – to be passed at council’s February 18 meeting,
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