City officials have put their stamp of approval on a plan to help Cummins Inc. expand its Seymour Engine Plant and receive money for educational pursuits in return.
On Monday, the city council unanimously approved an ordinance to borrow $2.375 million by issuing municipal bonds.
Councilman Lloyd Hudson said the money will be loaned to Cummins for property upgrades to support the engine maker’s growth onto the former Big Blue Store property and Indiana Department of Transportation land south of Cummins’ existing Seymour Engine Plant off East Fourth Street.
The money also will help Cummins transform the property across the street, which used to be the site of Ulrey’s Glass, into a parking lot.
Rich Starkey, an attorney with Barnes and Thornburg in Indianapolis, said the way the bonds are structured so there is no liability to the city.
The bonds will be repaid over a period of seven years through income tax revenue generated from new hires at Seymour Engine Plant.
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