The Burns Harbor
Town Council passed three resolutions finalizing three tax abatements for
ArcelorMittal at its meeting last night.
the steel giant that pays 73 percent of the Town’s property taxes approached
the Council in March asking for a tax abatement in relation to $163.4
million in planned upgrades over the next four years.
The work has been
broken down into three phases, each of which has its own abatement attached.
The three abatements correspond to the following phases and costs:
$57,900,000 for upgrading finishing equipment, $54,132,000 for upgrading hot
roll equipment, and $51,400,000 for upgrading steel producing equipment.
include new equipment and incremental updates to existing assets that are
intended to keep the plant competitive in a changing global market and
produce more hot roll direct sales in the United States. Items on the list:
two new charge cranes in the steel shop, a new coke discharge machine, a new
BOF vessel, increased coil capacity at the hot mill, new coil binders,
upgraded coil storage, and the installation of an in-line temper mill.
begin the year following the completion of each phase--the first one in 2022
and the last one in 2024--each on a ten-year schedule where 100% of taxes
are abated for the first three years, 75% are abated in years four and five,
and 50% are abated in years six through 10.
Per Indiana Code,
the Town is allowed to impose a fee of no more than 15 percent of the amount
of taxes abated or $100,000 for each year, whichever is less, for the
duration of a tax abatement it grants. The Council granted ArcelorMittal a
tax abatement on its $134 million Walking Beam Furnace Project in 2017. That
abatement goes into effect in 2022. So, come 2024, the Town will be
collecting annual fees on four abatements.