Michigan City committee recommends approval of 2025 tax abatement list to city council

The City Council Tax Abatement Committee on July 9 recommended that the City Council approve the 2025 list of tax abatements covering 13 abatements across 10 companies, the committee president announced after a motion and second that passed by a 2-0 vote.

The recommendation matters because tax abatements reduce local property tax receipts and are contingent on companies meeting investment and job-creation commitments. Committee members reviewed compliance reports, discussed a clerical address discrepancy on one hotel application, and heard that staff will continue monitoring companies for filing and job targets.

Committee President said there was “a different address on the resolution than there was on the request for the abatement,” and that Beacon property records indicate the request was intended for the property listed in the application, not the address that appeared on the resolution. Clarence Hulse, director of the Michigan City Economic Development Corporation (EDC), explained how abatements are monitored and why the committee reviews annual compliance.

“There are 2 types, personal, which is equipment, and real estate, which is a building,” Hulse said, describing the two kinds of abatements the EDC tracks. He told the committee that companies are required by state law to file a CF-1 each year and that filers must submit documentation by May 15 to remain in compliance. “They have to file every year by May 15, to comply,” Hulse said.

Hulse and EDC staff reviewed the list with committee members and noted some companies are behind their projected job goals—several at about 50% of projections, some near 78%, and one company exceeding projected jobs by more than 200%—but said the EDC generally keeps companies on the schedule when there is a “good faith effort” to meet commitments. He also described the EDC’s role connecting employers with WorkOne, Ivy Tech and the school district to help fill positions locally.

Committee members discussed past enforcement actions. Hulse said the city previously terminated abatements for two companies that did not file required paperwork and that one company that had received approvals never filed and later closed; he said terminating an abatement removes any ongoing city obligation that would otherwise appear on audit ledgers handled by the city’s auditors (Baker Tilly).

Hulse told the committee that DME, a company previously approved for a real-estate abatement, will return next week seeking a personal equipment abatement for roughly $4.5 million in equipment tied to a roughly $30 million building project (100,000 square feet, about 80 jobs). He also said some approvals appear on the committee’s listing only when companies begin paying taxes and filing in the tax rolls, which can delay appearance on the committee’s annual list.

Committee members resolved to forward a recommendation of approval to the City Council for action at its July 15 meeting. Committee member Daisy moved to recommend approval; the motion was seconded and the two members present voted yes. The committee noted that city attorneys had been sent a resolution for review and that staff expect to deliver the paperwork to the clerk’s office shortly.

The committee’s review emphasized that annual compliance monitoring, CF-1 filings, and coordination between EDC, the city clerk and the county assessor are central to ensuring abatements remain tied to promised investments and job creation. The matter will next appear before the full City Council on July 15, 2025.