Kokomo’s Common Council unanimously approved a five-year tax abatement Monday for an $11-million manufacturing equipment investment by Patriot Porcelain, a high-quality sanitary product manufacturer that began operations in September.
The investment dates back to Patriot Porcelain’s initial equipment purchases on Feb. 1, 2014, and any other previous manufacturing investments, said Kokomo Director of Development Jennifer Jordan.
The company expects to have completed its investment by June 30, which includes a CDS bowl drying system, a PCL bowl press system, glaze spray lines and ware cars, according to paperwork submitted to the Common Council.
“Patriot Porcelain was focused on getting their business up and running and since we knew that we had until March 1 to pass the abatement, we didn’t pressure them to get this through at an earlier time,” said Jordan.
Patriot Porcelain, which announced a workforce of more than 100 employees in October, also expects to reach its goal of 140 employees by the end of the project – a total that would amount to $3.6 million in annual salaries.
“This is a good project for the city,” said Common Council Vice President Mike Kennedy. “It is a safe way for the city to help invest in economic development.”
The company, which officially began production on Sept. 14, has previously received $200,000 in incentives from the city, or $2,000 for the hiring of each Howard County resident. The Indiana Department of Workforce Development also has provided payroll tax credits.
“For one thing, it brings income and it helps payroll,” said Common Council President Bob Hayes. “Hopefully those people are going to spend and live in Kokomo.”
“These are the kind of things investors are looking at,” said Hayes. “No one wants to go into a restaurant when there are no cars parked in the parking lot. If you see people wanting to invest in Kokomo, the other investors will take the opportunity to come to our city.”
Patriot Porcelain’s investments are expected to create an aggregate economic impact over the next 10 years of more than $300 million for the Howard County region, according to feasibility studies.