The Terre Haute City Council has found GATX Corp. in substantial compliance with terms of a 2017 tax abatement, though a planned expansion of its rail car maintenance facility at 4400 Maple Ave. has apparently been delayed.
The show of support for the longstanding employer is largely academic since the Chicago-based company will receive no tax breaks unless an announced investment comes to pass.
The action came on a voice vote at the council’s most recent meeting last week.
If the full proposed amount $38.5 million is invested, the company stands to save an estimated $3.9 million in real and personal property taxes over 10 years while still paying $3.5 million.
In a compliance statement filed last month, GATX reported a net gain of four employees and a total staff of 27 with an annual payroll of more than $1.4 million. The company had estimated the expansion would add 55 workers, boosting its workforce to 78 with a total payroll of $3.4 million.
Company officials have not responded to messages left last month and again Monday seeking comment. However, Steve Witt, president of Terre Haute Economic Development Corp. has said it is his understanding the expansion has been postponed.
Councilman Todd Nation, D-4th, made the motion to find the company in compliance, noting the targeted completion date for the expansion has always been December 31, 2020.
“The way I see the situation is that GATX is still expressing their intention to finish — at least that’s what the paperwork implies,” he said. “We’re not out anything by putting our faith in the fact that they have said they want to do this.”
As part of ongoing annual reviews, GATX was among eight businesses found in compliance with tax abatements dating to 2008. The council tabled compliance statements from four entities until its meeting on Thursday because members had questions about submitted data.
One of the other businesses found in compliance was Pyrolyx USA for a nearly $25 million tire reclamation facility at 4150 Steelton Ave. Pyrolyx stands to receive tax abatements totaling about $1.4 million while paying about $1.7 million.
The German-American company did not meet an original January target date for completion of the plant that will create an estimated 55 jobs. However, the plant is on track to begin production this summer and the company has announced plans to build a second similar facility next door.
A separate tax abatement is pending for the second plant.
Dave Taylor can be reached at 812-231-4299 or firstname.lastname@example.org. Follow him on Twitter @TribStarDave.