The Hammond City council has approved a $4 million tax incentive for Michigan-based Lear Corp. (NYSE: LEA). The incentive is in relation to the auto parts manufacturer’s $30 million expansion project that includes a new 240,000-square-foot facility in the Lake County city.
Our partners at The Times of Northwest Indiana report the incentive is part of a development agreement between the company and the city announced a year ago. During the council meeting Monday night, Hammond Mayor Tom McDermott called the approved "a huge win for us."
The council also amended the development agreement, according to the publication. It initially required Lear to use the city funding for construction costs, but now allows the company to put the money toward new employee training.
Construction on the facility began in November. The plant will be used to produce seats for Ford Motor Co. (NYSE: F) and will consolidate Lear’s operations in Hammond and Portage under one roof. The company says 875 existing employees will move to the new facility once it is complete and there will be room for further expansion if demand grows.
The Times reports Lear Corp. is in talks with a potential buyer for its former facility on 165th Street in Hammond.