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MENTONE - Midwest Spring Manufacturing Co. wants a tax abatement.
Monday, South Bend attorney James O'Brien, representing Midwest Spring, made the request before the Mentone Town Council for a personal property tax abatement for the business to expand in Mentone. The company plans to construct a 20,000-square-foot building for manufacturing and warehouse expansion at a cost of approximately $200,000.
O'Brien said the company anticipates purchasing new equipment at a cost of approximately $1 million. Once all is in place, he said, the company hopes to have additional employment of 10 to 12 people for additional compensation totaling approximately $367,000.
For the abatement to be approved, O'Brien said, the council has to approve two separate resolutions. The first is an ordinance to designate the area as an economic revitalization area, which the council approved Monday. The second is a confirmation resolution, which will be discussed at the town council's public meeting Oct. 4.
Midwest Spring is current on its tax obligations, O'Brien said. "This is a pretty straightforward application."
Town attorney Larry Beeson advised the council, "If you think they're going to do this anyway, then you do nothing and you reap the benefits immediately."
"I think it's awesome we are going to keep them," Jack Simpson, councilman, said. If the council doesn't approve the abatement, he said, they could lose the company, but they don't lose anything by approving the abatement.
"I don't see a problem with it," said Mark Hughes, council president. He made the motion to approve the abatement, councilman Tim Croy seconded the motion and it was approved unanimously.
In other business, the town council:
• Approved a bid from Phend & Brown for up to $22,000 for street paving work in the town.
• Approved a bid from Jim Keirn Excavating and Hauling for approximately $15,000 for storm tile work.
• Approved for three town employees to travel to Greenwood Oct. 6 for mosquito spraying school at a cost of $87 per person for two people and $65 for the third person as well as meals and mileage.
• Heard Mentone is now ISO certified as a "5" in fire protection. They were a six and the new rating is "real good for us as a volunteer fire department." The new rating will save taxpayers money in their insurance costs.
• Approved the fall cleanup date as Oct. 22. The list of items that can be accepted is available at clerk-treasurer Barbara Ross's office.
• Appointed Alice Hardesty to the senior citizens board.
• Approved a policy that any time a town-owned vehicle travels out of state, the town council must be informed in advance.
• Approved the 2005 salary ordinance for town employees.
• Was reminded the 2005 budget will be approved at a special meeting Monday at 7 p.m.
Members of the Mentone Town Council are Tim Croy, Mark Hughes and Jack Simpson. Their regular meetings are at 7 p.m. in the town hall on the first Monday of every month.
