Last week, Mark Morris from CTE Solution in Plymouth appeared before the City Council to discuss the Tax Abatement the company received.
Morris said they have had delays in being able to spend on the capital improvements they planned over the last two years due to COVID, the interruptions of the supply chain, and getting progress on construction projects going. He said materials issues, delays in receiving ordered equipment, and the labor shortage are also causing them delays.
Morris asked for a one-year extension on their tax abatements.
Councilman Don Ecker asked about the lead-time for the equipment ordered and Morris said the delays are for equipment coming from Asia. Shipping is their biggest delay and the lead-time could be several months and they aren’t giving us a time frame until it gets to the dock.
City Attorney Sean Surrisi said the request is similar to the one the council had a month ago from Indiana Wheel Company. The limitation of the designation of the Economic Revitalization Area has a statute that will allow for the tax abatement to be available for equipment that is installed afterward as long as it’s within the rolling 5-year deadline. The window keeps automatically renewing unless the General Assembly declares they are going to do away with it.
As long as the City Council approves it takes no formal action of the council. Surrisi said they just wanted to get something into the official minutes. He said CTE won’t be making a claim for the tax abatement until the equipment is installed.
