Slate Auto tax abatement approved; Wolkins voices concern over viability
This post was provided by News Now Warsaw
By Dan Spalding
News Now Warsaw
WARSAW — Slate Auto was welcomed to town Thursday night after the Kosciusko County Council approved a tax abatement plan for the upstart electric vehicle manufacturer that plans to begin operations next year.
A light round of applause broke out after the county approved the abatement plan with support from five council members in what some believe could be a historic chapter in economic growth for the county at the old RR Donnelley printing plant just outside Warsaw city limits.
Additional negotiations with the Michigan-based company led to a final agreement that will result in an additional $1 million in tax revenues the county expects to collect over the next ten years, according to Council President Tony Ciriello.
Slate attorney Steve Snyder recapped the amount of money the county will capture over the first ten years.
“The tax revenue, even after abatement, for personal property received by the county, would be $7,534,713, and for real estate, would be $5,409,039,” Snyder told the council.
Overall, Slate Auto plans to invest $362 million into the old printing plant.
The company also announced Thursday that it now plans to add a seat manufacturing component to the facility that will result in another 120 additional jobs on top of the estimated 1,700 jobs previously announced.
Councilwoman Kathy Groninger abstained and fellow councilman David Wolkins, who detailed some misgivings, opposed it.
Wolkins questioned whether the electric vehicle company can be viable, especially if the existing $7,500 tax credit for EVs currently available to car buyers is rescinded by President Trump.
New legislation being considered by Congress could end that credit.
He said the lack of a strong track record for EV startups and a new and different outlook by the Trump administration create concerns about how the company will fare.
“I would love to have seen an abatement type that rewards them if they are still in business in five years,” Wolkins said. “I hope they are successful with the whole thing, but the track record with these EV companies is not very good.”
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