Elkhart Council Approves Compliance Resolution for Treadit Tire and Wheel Company

On June 18, 2025, the Elkhart City Council Tax Abatement Committee convened to discuss compliance issues related to local businesses benefiting from tax abatements. The meeting highlighted significant discussions surrounding two companies, PlaCon and Treadit Tire and Wheel Company, both of which faced challenges due to supply chain disruptions exacerbated by the COVID-19 pandemic.

The committee's primary focus was on PlaCon, which was evaluated for its compliance with the terms of its tax abatement agreement. Members expressed support for the company, noting its efforts to retain employees during difficult times. A motion was made and passed unanimously to adopt a resolution affirming that PlaCon is in substantial compliance with its benefits agreement. This decision reflects the committee's recognition of the company's challenges and its commitment to maintaining local employment levels.

In a related discussion, Treadit Tire and Wheel Company was also reviewed for its compliance status. Originally approved for tax phase-in in 2018, Treadit faced delays in equipment installation due to supply chain issues, which led to complications in meeting compliance thresholds. The company’s average annual wage for new employees was reported at $33,871, which is approximately 89% of the city's median income, falling short of the 90% compliance threshold required for tax benefits. The committee acknowledged the company's substantial efforts to comply and indicated that a waiver for noncompliance could be presented at a future meeting if the council finds Treadit has made adequate progress.

The discussions underscored the ongoing impact of economic challenges on local businesses and the council's role in supporting them through tax incentives. As the committee prepares for its next meeting on July 9, the outcomes for Treadit will be closely watched, as they could set a precedent for how compliance issues are handled in the future. The council's decisions not only affect the businesses involved but also have broader implications for employment and economic stability in Elkhart.