Elkhart Offers Tax Breaks to Land Nexus Plant
The city of Elkhart, Ind., is confident that startup RV manufacturer Nexus RVs LLC will chose to locate its manufacturing facility in the northern Indiana community following unanimous preliminary approval Monday night (Oct. 4) of a package of tax incentives by the city council.
”I don’t mean to be flippant, but for a project like this, we fully anticipate that we are going to prevail over other states because the long-term cost of doing business in Indiana is going to be substantially less,” Barkley Garrett, Elkhart economic development director, told RVBusiness.com.
The company is looking at an empty 109,000-square-foot facility in an industrial complex on Reedy Drive and C.R. 13 on the north side of Elkhart. Nexus intends to begin hiring key personnel this month to build a ”B-plus-style” Class C motorhomes by late winter.
Following the city of Elkhart’s action, Garrett said that it’s likely that the state of Indiana will provide other incentives for Nexus to locate in Indiana. ”The state typically comes through with training dollars and tax credits,” Garrett said. ”I would be surprised if this wasn’t similar to previous projects.”
Nexus President Claude Donati said last week that the company also was seeking an incentive package from Michigan for a factory near the Indiana border and would decide on a location when proposals were approved by both states.
The incentive package approved by the Elkhart City Council will save the company about $38,600 over the next five years on the installation of $1 million in equipment.
Final approval is expected by the council during its next meeting Oct. 18.
Donati was not available for comment today.