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Elkhart council approves repayment agreement with Champion Manufacturing after tax-abatement noncompliance
Summary
The common council approved a resolution requiring Champion Manufacturing and the property owner to repay abated taxes after finding substantial noncompliance; payments will be split across two spring tax installments, council was briefed on the statutory formula and limits on recovering attorney fees.
The Elkhart Common Council on March 3 approved a repayment agreement requiring Champion Manufacturing Inc. and County Road 17 Land Development to repay abated tax benefits the city says the company did not earn, the council’s roll-call vote showed the measure passed 9-0.
The resolution closes a compliance review that found Champion did not meet the terms of its five-year tax phase-in. City staff and legal counsel told the council the statutory formula yielded a 40% compliance metric and a 60% noncompliance figure, and the city used that calculation to determine the amount to recover. The company and the property owner agreed to place half the required repayment on this year’s spring tax installment and the remainder on…
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