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Council approves tax‑phase and payment agreement with Knotwood Inc. for proposed economic project
Summary
After a brief public hearing, the council adopted a confirmatory resolution for an economic revitalization area and approved a commitment and payment agreement with Knotwood Inc.; the company is expected to invest in real estate and personal property and create 50 full‑time jobs if it meets the agreement terms.
The Elkhart County Council opened and closed a public hearing and on June 16 adopted a confirmatory resolution recognizing an economic revitalization area for a proposed manufacturing build‑out and then approved a related commitment and payment agreement with the developer.
County Attorney Steve Olson summarized the project and the conditions for the confirmatory resolution, saying the county had been asked to confirm that the qualifications for an economic revitalization area were met. Olson recited the project’s stated numbers: estimated real estate improvements of $850,000, a personal property investment total of $8,130,219 spread across manufacturing, research and development, logistics and IT equipment, and an expectation that the project would create 50 full‑time jobs by Dec. 31, 2027. He said the council would consider a five‑year real‑estate abatement and a three‑year personal‑property abatement, subject to a signed agreement.
Steve Olson outlined the commitment and payment agreement that Knotwood Inc. must execute, including an annual payment to the county equal to 15% of the property‑tax reduction generated by the tax phase‑in and contractual remedies if Knotwood fails to meet its obligations. "That brings the total personal property value of $8,130,219, which will need to be achieved by 12/31/2027," Olson said during the presentation.
A business representative, Mike Businelli of SuperSeed (the transcript indicates he is leading the manufacturing build out), answered brief council questions during the public hearing. After the hearing closed, the council approved the confirmatory resolution and then approved the commitment and payment agreement by voice vote, both recorded as passing unanimously.
The county attorney noted the agreement also addresses Knotwood’s rights to bring property‑tax assessment appeals and establishes a structure for repayment if the company fails to meet the commitments. The county will monitor compliance under the agreement and receives contractual remedies and an annual fee described in the agreement.
Next steps: execution of the payment agreement and any follow‑on steps required by the county auditor to implement the abatement and fee collection.
