Published: October 09, 2008 11:49 pm      

GETRAG: Tipton candidates’ take

Political hopefuls taking a wait-and-see approach

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Candidates seeking a seat on the Tipton County Board of Commissioners believe the future of Getrag’s transmission plant is unknown.

With Chrysler filing a lawsuit this week against its German partner in the Tipton County project, some are taking a wait-and-see approach.

“I’m looking for the optimistic solution,” said Jane Harper, candidate in the 2nd District. “If Chrysler severs the relationship, it is up to county officials to forge a relationship with Getrag if they decided to go it alone.

“Getrag doesn’t have to sell transmissions to Chrysler, they can sell to any automotive manufacturing company.”

Harper said if Getrag moved forward on the project alone, it would mean new jobs for Tipton because there would be no agreement to bring the workers from Kokomo transmission plants.

“It may be better for Tipton,” she said. “Many of those people hired would be living in Tipton County, and the county would benefit from the increased income taxes.”

Mike Cline, candidate in the 3rd District, said financial problems alleged in the lawsuit could be like the economy in general.

“How much of this is legitimate on Chrysler’s part, and are they trying to get out of the project?,” Cline asked. “They have the ability to build their own transmissions.”

Getrag supplies transmissions to a large number of car companies, but it might be hard to find a new partner in the project because of the fiscal situation, he said.

Harper expressed confidence in the Redevelopment Commission, which oversees the Tax Increment Financing District for the Getrag site. The county would not responsible for the funding. She said if the project is not completed, it won’t bankrupt the county.

“From my understanding of the way the bonds are structured, $11.3 million of the bonds was sold to Chrysler and Getrag,” she said. “The remaining $3.1 million was purchased by Harris Bank and is to be paid back from property taxes. The county would still collect taxes on whatever is at the site.”

The county has a vested interest in this, Cline said. If there won’t be any tax dollars being received, why build the plant? he asked.

He said a majority of people don’t know what the county has committed to. The county and state has spent a lot of money, everyone wants a return on their investments.

“We may have a road to nowhere,” Cline said referring to Tipton County Road 560 West, which was constructed with state and local dollars. “The verdict is still out. It may end up positively.”

Harper was upset that county and city officials were not notified in advance that the lawsuit was being filed.

“The manner in which local officials received word is unacceptable,” she said. “That would not be tolerated in the next administration.”

Harper said if elected, there would be a clear understanding that any announcement of any kind the local people would be given the common courtesy of what that announcement will be.

Cline said as a commissioner, he would work to make sure the line of communication is open between all the parties involved.

Candidate Jeffrey Hoffman and Matthew Gall could not be reached for comment.

Ken de la Bastide can be reached at (765) 454-8580 or via e-mail at ken.delabastide@kokomotribune.com