Water plant complete after delays

Mar 8, 2010 — Kokomo Tribune

Ken de la Bastide

Mar. 8, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- TIPTON -- More than a year after work on a wastewater facility at the vacant Getrag site was supposed to be completed, the treatment plant is now operational.

With all utilities to the site now in place, Tipton County officials are hoping a new company will purchase the plant and begin manufacturing operations.

Getrag Transmission Manufacturing LLC and Chrysler LLC (Old Carco) began construction of the plant at the intersection of U.S. 31 and Ind. 28 in 2007, with Tipton providing utilities to the location.

The project was abandoned in 2008 after Chrysler backed out of the deal, claiming Getrag had not secured the necessary financing. Getrag eventually filed bankruptcy, and the partially completed building remains vacant.

The water plant was scheduled to be completed by Dec. 31, 2008, but the work was not finalized until July 7, 2009.

Work on the wastewater treatment plant was scheduled to be done by Jan. 31, 2009.

During the Tipton County Redevelopment Commission meeting Thursday, President Jane Harper said both facilities are now operating and ready for a new tenant in the former Getrag facility.

Harper said Friday the utility work is being paid for through a Tax Increment Financing district (TIF), established to pay off bonds to finance the work. The bonds were issued through Harris Bank in the amount of $3.1 million.

A TIF district allows a governmental entity to borrow money to purchase land or make infrastructure improvements to an area designated for development.

The bonds are repaid by the additional tax revenues generated by improvements to the property. Other government entities continue to get revenue generated by the property at its value before improvements are made.

Original plans called for the water treatment plant to handle 250,000 gallons of water per day, but that was increased to 500,000 gallons. The wastewater treatment plant capacity was increased from 60,000 to 125,000 gallons per day in July 2007. The expansions added $1.4 million to the cost.

The two plants were expanded to handle future commercial and industrial development, as well as providing service to surrounding communities.

The wastewater and water treatment plants were built on 30 acres of land owned by Tipton Utilities and Indiana Municipal Power Agency.

Harper said the county is exploring legal steps concerning the cost of the two projects with the contractor and engineering firm hired to manage the project.

Tipton County officials are working with a trust, created to sell the Getrag building, as a solar panel manufacturing company considers the Tipton site.

Last October the trust asked county officials to consider several incentives to bring about the sale of the building to a company with the code-name "Apex". Two other locations are vying for the plant.

If successful the company would invest $450 million in property improvements and equipment and create 850 jobs.

The trust wants Tipton County to provide $13 million in TIF funds to lower the sale price of the building.

A second incentive would be a 10-year tax abatement on real and personal property taxes, if Apex purchases the site.

In an independent action, the trust asked Tipton County to abate 50 percent of the $660,000 in property taxes owed on the building in 2010. In exchange, the trust won't appeal the assessed value of the building.

--Ken de la Bastide is the Kokomo Tribune enterprise editor. He can be reached at 765-454-8580 or via e-mail at ken.delabastide@kokomotribune.com

Newstex ID: KRTB-0280-42685805