More news on the Fleetwood Towables Brands
Elkhart Truth Article
Published: 3/30/2010 12:00:00 AM
Last Updated: 3/30/2010 12:03:20 AM
By:
Josh Weinhold
Update (10:30 a.m.): Heartland will spend more than $2.6 million to purchase and equip the former Damon Corp. facility, according to a release issued today by the Indiana Economic Development Corp.
The company will receive $885,000 in performance-based tax credits from the IEDC.
ELKHART -- A local recreational vehicle maker that bought the trademarks of a bankrupt competitor last month will create more than 250 jobs here.
Heartland RV, which purchased the brand names of several Fleetwood Enterprises travel trailer lines, received a five-year tax phase-in Monday at a special call meeting of the Elkhart City Council.
The company plans to acquire a former Damon Corp. facility on Elkhart's north side and produce the brands there. The expansion will create 265 full-time jobs at an average wage of more than $22 an hour, not including benefits, according to city documents.
While the new product lines will be sold primarily on the West Coast, company officials said it made sense to keep manufacturing operations here. With Heartland headquarters in Elkhart, officials said it they wanted to keep the plant closer to management, rather than out west.
"We're very committed to Elkhart County. We have tremendous suppliers, a tremendous labor force," said Dennis Donat, Heartland's chief financial officer. "It's our best opportunity for success right now."
The phase-in will offer Heartland a combined $37,200 in real and personal property tax savings, with the company paying about $23,000 in taxes over that same period. The jobs created are expected to generate $182,000 in local income taxes annually.
<!-- More Coverage Section --> <!-- end of more coverage --> <!-- 2nd part of story --> Heartland is also hoping to receive job creation incentives from the state, but those were contingent on the company obtaining local financial support. If the company did not get city or state incentives, it would have opened the new plant in a western state, city documents state.
Though the agreement indicates the phase-in will retain the 1,050 full-time staff Heartland already employs here, Donat doesn't believe the area was at risk of losing those positions, tax incentives or not.
"I don't think all the jobs would have moved," he said. "But the West Coast provides tremendous business opportunities. You have to go where your customers are."
Heartland, which makes travel trailers and fifth wheels, bought the Fleetwood trademarks in early February for $306,000. It plans to have about $681,000 in property improvements to the 2929 Gateway Dr. facility completed by June, with hiring potentially beginning later this year.
Donat said Heartland could perhaps start production by the end of the year, and hopes to have models ready to display at the Louisville, Ky., National RV Trade Show in December.
Responding to council member questions about growth potential, Donat said Heartland has remained a successful company despite a recent downturn in the industry. While other companies saw 30 percent losses last year, he said, Heartland remained level -- a sign it's on the right track.
"We did a lot of things correctly," he said. "That's where we think our growth is going to be, continuing to do things well."