City tax abatements total up to 2,536 jobs, $115 million payroll locally

At the end of a typical major league baseball game, you might hear the announcers recap “the happy totals.” In the old tax abatement ballgame, Greencastle city officials heard some happy totals of their own at the City Council’s June meeting.

At the end of another abatement year, in an annual review of statements of benefits from local companies that have been awarded tax abatement, City Council members digested some impressive numbers shared by Greencastle/Putnam County Development Center Executive Director Kristin Clary.

Covering 23 abatements -- seven representing real property (real estate) and 16 personal property (equipment) -- via calculations based on CF-1 forms submitted to City Council for current tax abatement projects, the creation of more than 2,500 jobs with a payroll in excess of $115 million was reported.

According to Clary, the abatement-produced figures, based on end-of-the-year numbers from 2023, include:

• Total number employed: 2,536.

• Total annual payroll for those employed: $115,389,793.

• Average annual wage per job: $45,493.

• Total real property capital represented (seven projects): $58,146,524.

• Total personal property capital represented (16 projects): $214,596,085.

All of those numbers represent an increase over the previous year with the exception of the average annual wage per job, which was down slightly -- less than $100 -- from the $45,571 reported last year.

Individually considering the statement of benefits involved in those abatements, the City Council unanimously approved continued abatements for Crown Equipment Corp., Premium Brands Service known as Knitwell Group (formerly Ascena Retail Group), Chiyoda USA, Heartland Automotive and Phoenix Closures, along with the city’s first residential property abatement for Indian Springs North.

Clary called Crown Equipment “the gold standard,” noting that the lift truck manufacturer now owns three buildings in Greencastle -- the old Sherwin-Williams site which houses Crown’s main operations, the old TechnoTrim building on the opposite side of State Road 240 and the old IAC (International Automotive Components/Lear Corp.) building on Fillmore Road.

Crown has exceeded its employee projections with 956 current workers making salaries totaling $48,849,275, according to the statement of benefits. And Clary said more Crown employees are on the way.

“They anticipate hiring more for Building 3 (the IAC building),” Clary said, noting that Crown is working out specifics at its New Bremen, Ohio, headquarters and plans to slowly up the hirings as to not adversely impact other local employers.

“They’re a great neighbor and a great employer,” she added. “They can’t believe where they’re at today.”

Crown has six abatements still in place -- three facilities expansions (2011, 2017 and 2023) and three equipment additions.

Clary also praised Knitwell/Ascena, noting “they’re doing very well” after hiring 624 workers, more than doubling its 308-person estimate, with $28.9 million payroll.

Knitwell has four abatements still in place, including facilities expansions in 2012 and 2015 and equipment additions in 2012 and 2015.

Meanwhile, Chiyoda USA received kudos from Clary for a dramatic change in culture at the plant and an increase in its starting salary with its role in supplying parts to Subaru at Lafayette for its new Crosstrek SUV. Chiyoda is up to 319 workers, topping its estimate of 260 with a $12.4 million payroll.

Projecting an additional 61 workers, Chiyoda “would love to have more employees if they could find eligible and qualified people,” Clary added.

Chiyoda still has five abatements in place, including a facility expansion in 2015 and equipment additions in 2015, 2018, 2021 and 2022.

Also supplying parts for Subaru and its new Crosstrek SUV, Heartland Automotive is now at 490 employees with an annual payroll of $18.1 million.

Heartland still has five abatements in place, all for equipment in 2013, 2016, 2017, 2019 and 2023.

And finally, Phoenix Closures has grown from 90 to 147 employees, expanding Greencastle operations even as it acquired the old Otis Elevator plant on the west side of Bloomington for a different product line. The additional local hirings are good for an $8.1 million payroll.

“They do a great job,” Clary said of Phoenix. “If you buy Kitty Litter (in a plastic jug), they probably manufactured the cap. The same with peanut butter.”

Summarizing the five Greencastle operations holding abatements, Clay said the companies “are all doing great. We’re grateful to have them.”

The Council also approved the first-time statement of benefits for Indian Springs North, the 25-unit apartment complex at the north end of Arlington Street.

The 2023 abatement is predicted to increase the property value by $500,000 as a full interior/exterior renovation, including HVAC, was conducted on all the buildings after their acquisition by local contractor Jared Grable. The additional assessed value expected from the property is the reason the abatement was approved last year.

“This one is unique,” Clary said. “It’s our very first residential abatement.”

Occupancy was only about 40 percent at Indian Springs North when Grable purchased the property, Clary said.

“They’ve definitely improved it,” she added.

Councilman Mark Hammer said he could attest to that. “They look a lot better now,” Hammer praised. “They’ve cleaned it up so much.”

Councilor Darrel Thomas agreed, adding, “It’s nice to drive by them now.”

Councilmen Hammer and Thomas were joined by Council President Stacie Langdon and councilors Katherine Asbell, David Masten, Tina Nicholson and Vince Aguirre for the two-hour meeting at City Hall along with Mayor Lynda Dunbar, Clerk-Treasurer Mikayla Johnson and City Attorney Laurie Hardwick.

Other action from the June City Council meeting will be included in a later article.