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Burns Harbor Town Council finalizes tax abatements for ArcelorMittal

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By LILY REX

The Burns Harbor Town Council passed three resolutions finalizing three tax abatements for ArcelorMittal at its meeting last night.

Representatives of 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.

The upgrades 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.

The abatements 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.

 

Posted 5/9/2019

 
 
 
 

 

 

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