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Elkhart committee recommends do-not-pass for ATC abatement over missed job targets
Summary
The Elkhart City Tax Abatement Committee voted 2–1 to send resolution 26‑R15 on American Technology Components (ATC) to the full Common Council with a do‑not‑pass recommendation after ATC met property investments but fell short of promised new jobs.
The Elkhart City Tax Abatement Committee voted to send proposed resolution 26‑R15 to the full Elkhart City Common Council with a do‑not‑pass recommendation after finding American Technology Components Inc. (ATC) failed to meet its new‑job targets even though it exceeded its promised property investments.
Drew (city staff) told the committee ATC’s 10‑year real‑property and five‑year personal‑property phase‑ins achieved the investment thresholds, including about $23 million in real‑property work, but the company had not met the new‑jobs portion of its Statement of Benefits. Jordan Hers, ATC’s chief financial officer, told the committee the RV market — which accounts for roughly 60% of ATC’s business — fell sharply after the 2021 proposal, reducing hiring plans. “When we proposed this project ... the RV industry was at historic highs; today demand is down significantly,” Hers said, adding the company has raised average hourly wages and brought some tooling back onshore.
Council members pressed on counts and timing. Councilman Hanky noted ATC’s retained‑job numbers and compared the company to other local firms that met job targets: “A big zero is a big zero,” Hanky said, emphasizing the committee’s role in evaluating whether the company made substantial effort on jobs. Staff and Mike Huber, the city’s development services director, said the statute’s “substantial effort” standard allows the committee to weigh property investment and wages against job shortfalls when making a recommendation.
An initial motion to find ATC in substantial compliance lacked a second and failed. A subsequent motion to send 26‑R15 to the full council with a do‑not‑pass recommendation carried on a 2–1 voice vote, with the committee recording two votes in favor and one opposed. The committee’s action is a recommendation; the full Elkhart City Common Council will consider the matter and any potential changes to the memorandum of agreement, including whether an amended phase‑in term is appropriate.
Next steps: The full council will receive the committee’s recommendation and may accept, amend or reject it; staff said amending the memorandum of agreement would be required to change the length of ATC’s abatement.
