Whiteland officials are considering a unique personal property tax break for Mohr Capital and the soon-to-open Cooper Tire facility as a reimbursement for infrastructure improvements.
The more than 900,000-square-foot Cooper Tire warehouse is set to open soon at the corner of Whiteland and Graham roads. Mohr Capital asked the Whiteland Town Council for a personal property tax abatement to reimburse the developer for $340,000 in infrastructure improvements made to the roads, parking areas, ponds and landscaping in the area.
The abatement is unique in that it’s short — just two years. During those two years, Whiteland will cover all of Cooper Tire’s personal property taxes, totaling about $426,000. The money leftover from the abatement will be given back to the town, according to town documents.
Applying for an abatement was the best way, in Mohr’s eyes, to get reimbursed for improvements made to the area that the town will benefit from, said Matt Price, an attorney representing Mohr. Cooper Tire will receive the abatement, then use that money to pay Mohr back, he said.
"It’s not a mechanism that I’ve ever seen used anywhere before, but it’s very creative, so we’re going to give it a shot," Price said.
Most town council members supported the abatement. Scot Ford called the deal a "win-win" situation. But council member Joseph Sayler questioned why Mohr was asking the town to pay for improvements that seemed to only benefit the company, particularly a retention pond and cable wire barrier on the far east side of the building.
Nearby property owners requested the retention pond to help with flooding, Price said. It was an added expense, but ultimately garnered more support from the public for the Cooper Tire project, he said.
Sayler said he did not think it was right to make taxpayers pay for something they asked for as a condition.
"That’s not a concession at all. That’s quite the opposite," Sayler said. "You’re going to redesign that to make the taxpayer happy, but at the same time then the taxpayer is going to reimburse you for it."
Despite Sayler’s concerns, the town council approved the abatement by a vote of 4-0-1, with Sayler abstaining.
Normally, abatements do not have to return to the town council after a vote. But members OK’d it conditionally, asking that Mohr and Cooper Tire take another look at what infrastructure expenses they think they should be reimbursed for, come up with a new and final list and return to the council before the abatement gets final approval from new Town Manager Kevin McGinnis.
