by Jason Schaap, Truth Staff
ELKHART - More than 100 workers at Colbert Packaging Corp. found out Wednesday their jobs are staying put in Elkhart, thanks to some help from the taxpayers of Elkhart and Indiana.
Mayor Dave Miller and other officials stood nearby while workers heard their fate from Colbert President James Hamilton before a holiday luncheon at the Colbert plant Wednesday.
"The climate here in Elkhart led us to decide we are going to permanently stay in this building," Hamilton said. "We have signed a new lease."
The building Colbert Packaging resides in at 1511 W. Lusher Ave. is still owned by the owners of Welch Packaging Group Inc., the parent company of Barger Packaging Corp., which Colbert acquired last year.
Colbert approached Welch about helping with infrastructure needs several months ago, Hamilton said. When not enough help was offered, he decided to look elsewhere.
"I told our guys, 'I want the city to help us,'" Hamilton said.
Colbert also has two locations in Illinois and one in South Bend. Hamilton told the city Colbert would have to consolidate and leave Elkhart if help was not offered.
Staying put: Colbert Packaging president James B. Hamilton (second from left) talks to employees about the future plans of the company to remain in Elkhart. Elkhart Mayor Dave Miller looks on. With help from the taxpayers of Elkhart and Indiana, the company will remain in its current location in the city.
Photo: Fred Flury/The Truth
City officials scrambled and asked state officials for more assistance. The result was more than $300,000 in incentives to keep Colbert here.
"It was just enough to push us over the top and give us a competitive edge," Miller said at the gathering Wednesday.
The city offered Colbert a forgivable loan of $100,000 to aid in facility renovations. The Indiana Economic Development Corporation offered $30,000 in training grants and $180,000 in potential tax credits. Hamilton said the incentives made the difference in keeping his company from moving.
"It was neck and neck until a month ago when the city council approved the money," Hamilton said.
An IEDC announcement said negotiations kept Colbert "from moving ... jobs to its Illinois operation."
But Hamilton said the plant likely would have moved to South Bend without the incentives. "(Illinois) isn't a friendly state," he said, "from a business point of view."
David Behr is the program manager for the IEDC north-central region. Behr, whose office is in South Bend, was at Colbert Wednesday for the announcement.
He said the offer to Colbert is one of about 170 his organization has made to Indiana businesses this year. Many of those have been in Elkhart county.
"A lot of other counties are envious of Elkhart," Behr said. "This is a hot county right now."
(Reprinted from the December 22, 2005 issue, The Truth. All Rights Reserved.)