ELKHART -- A property tax phase-in Monaco RV had won from the city of Elkhart had expired by the time the plant shut its doors Monday, Feb. 10, meaning the city won't need to go after the plant's owner for violating the phase-in agreement's terms.
The city had approved the phase-in in 1999 for Monaco's plants at 1809 W. Hively Ave. and 2700 S. Nappanee St. In exchange for retaining 229 jobs and creating another 100 to 130 jobs, investing $1.5 to $2.1 million in new manufacturing equipment and $4.2 to $4.8 million in real property improvements, the company had its property taxes phased in over 10 years, said Barkley Garrett, city economic development director.
City records indicate that Monaco filed its final compliance forms in May 2007, two years short of the phase-in period's ending.
"That would indicate that the common council believed the company had done enough to be in substantial compliance with the investment and job creation expectations set forth in 1999," Garrett said in an email.
The plant's 85 full-time workers were greeted Monday morning with a letter from owner Allied Specialty Vehicles stating the plant had closed because the business has been sold.