Courier Kendallville's expansion will create 80 jobs paying about $35,000 a year.

The Kendallville Economic Development Advisory Committee (EDAC) Thursday recommended City Council grant Courier 10 years of tax abatement on a 50,000-square-foot addition to its 200,000-square-foot warehouse at 3094 Lester Drive in the East Roberts Addition to the East Industrial Park.

Tax abatement applications for the warehouse expansion and new equipment at Courier's manufacturing facility indicate the two projects, representing about a $17 million investment, will add 80 jobs to the company's 631-employee workforce mainly at its manufacturing facility at 2500 Marion Drive in the East Industrial Park. The Kendallville Redevelopment Commission (RDC) was scheduled to review the abatement application for the new equipment at a special meeting this morning.

The RDC reviews the abatement application on the new equipment because the Marion Drive plant is within the RDC's Tax Increment Financing (TIF) district. The warehouse expansion is within the EDAC's jurisdiction.

The L-shaped addition will be on the east side of the existing warehouse, according to Courier Kendallville controller Terry Lewis.

The new four-color press will take up storage space in the manufacturing plant so the company needs the warehouse addition. The warehouse addition is in conjunction with the new press, according to Peter Folger, Courier's chief financial officer.

In April, Courier chairman and chief executive officer James F. Conway III announced the expansion in a financial report. He pointed to the growth in specialty trade books and sustained demand in education textbooks as reasons for the expansion of the company's Kendallville facility. "We expect this demand for our four-color capacity to continue into 2011 based on our current level of business in the college market," he reported.

In April 2009, Courier consolidated its warehouses by opening an $11.6 million, 200,00-square-foot warehousing operation. At the time, Courier officials announced the warehouse was part of a five-year, $30 million expansion in Kendallville that would create 100-175 jobs. City Council granted Courier 10 years of abatement on the new warehouse.

In December 2007, council granted Courier 10 years of abatement on $25 million of new equipment for its Kendallville plant.

"Courier is one of Kendallville's more serious corporate citizens, and I'm pleased to vote to vote for this abatement," commented EDAC member Jerry Stienbarger. "They've followed through with everything they told us they would do."

Courier is the third largest book manufacturer in the U.S.

In other business, the EDAC recommended City Council grant ELM, Inc. three years of abatement on an automatic car wash the company is adding to its car wash site at 850 W. North St.

ELM, Inc. owner Larry Lash said the $330,000 project involves changing one of the self-serve car wash bays into an office, and adding an automatic car was bay on the west side of the building. "We're seeing more of a demand for automatic car washers," he told EDAC members.

City Council is scheduled to consider both tax abatement recommendations at its Tuesday night meeting.