The Elkhart City Tax Abatement Committee recommended that American Technology Components Inc. (ATC) be found in substantial compliance with the statement of benefits for real and personal property, while noting the company has fallen short of its pledged new-job targets for two consecutive years.

ATC owner and chairman Steve Haines told the committee the company has met or exceeded its capital and real-property commitments but that hiring lagged after an RV-industry downturn: “I purchased the company when I was 27 years old,” Haines said, describing multigenerational ties to Elkhart and plans to bring tooling and work back from China.

The committee’s staff summary, presented by Drew (city staff), said ATC’s real-property investment exceeded the original estimate and personal-property investment met or exceeded targets, but the CF-1 (compliance filing) showed zero net new jobs against an estimated 68 for the SB-1 tied to the abatement. Controller Bridal Hester said ATC’s business is roughly 55% tied to the RV market and that industry sales dropped materially after a COVID-era spike, contributing to the shortfall. “Our hourly wage on the abatement were about 32% over what we needed to hit,” Hester said, noting capital and wage metrics otherwise compared favorably with the agreement.

Haines and Hester told the committee the company is repatriating 20–30 tooling sets from China, has added automation funded in part by a state grant, and expects to increase hires as those projects come online. Haines said some returned tooling has already arrived and that hiring could add a third shift over time. Committee members asked about timetable and site location; Hester said some tooling is already being installed and that additional hires would be at the Elkhart facility.

City staff explained the committee’s role is advisory: it may recommend the company made “substantial efforts” to comply or not, and the Common Council will make the final determination on July 9. Staff also noted the council has statutory options if it finds noncompliance: a one-year denial of the deduction for the affected tax year, or termination of the entire phase-in if the council determines the company did not make reasonable efforts.

After discussion, a council member moved to adopt the proposed resolution finding ATC in compliance for both real and personal property; the motion was seconded and approved by voice vote. The committee’s recommendation will go to the Elkhart City Common Council for final action.