Council approves 10-year tax abatement for Slate Auto at former Donnelly site

The Kosciusko County Council voted to adopt a confirmatory resolution and approve a 10-year tax abatement for Slate Auto and Phoenix Warsaw Investments for the redevelopment of the former Donnelly property in Warsaw.

The abatement package, presented by Steve Snyder on behalf of Slate Auto and Phoenix Warsaw Investments, asked the council to approve abatements for both real estate and personal property spanning 10 years under an SB1-style schedule. Snyder said the project envisions roughly $362 million in combined real and personal property improvements and approximately 1,700–1,800 new jobs, including an additional 120 jobs if the company brings seat manufacturing in-house.

The council opened a public hearing; no members of the public took the microphone. Snyder noted the abatement committee negotiated a schedule aligned with Department of Local Government and Finance recommendations and that the company accepted the committee’s counteroffer. The council then entertained a motion to approve the confirmatory resolution and the SB1 personal-property and real-estate abatements.

Council member Dave (surname not specified) voiced reservations about the assumptions behind the firm's projections, citing the uncertain market for new electric vehicle manufacturers, the potential for bankruptcies in the sector, and lack of clarity about the full state incentives package. "I would love to see an abatement type that would reward them if they're still in business in 5 years," he said, and concluded he would vote no.

The motion to approve the confirmatory resolution and the 10-year abatements carried. The council did not read a roll-call vote in the meeting transcript; the chair announced that the motion carried and congratulated Slate on the project.

Why it matters: If the project proceeds as presented, county officials were told the additions could raise personal property tax revenue from roughly $117,968 today to an estimated $1,047,082 (figures quoted by the presenter) at the end of the abatement. Snyder and county staff emphasized these projections depend on several assumptions about assessed values, tax rates and long-term operations.

What’s next: The approved confirmatory resolution declares the area an economic revitalization area and authorizes the abatement as negotiated. The developer and property owner will proceed under the terms described; future CF-1 compliance reviews and annual reporting to the abatement committee will determine continued eligibility.