Work is already underway on a nearly $70 million expansion at the AM General plant to allow for the assembly of the Joint Light Tactical Vehicle for the military.

St. Joseph County Council gave final approval Tuesday night for tax abatement for the project, which involves a 74,000-square-foot addition to AM General’s Plant 2 estimated at about $8.8 million and another $59.5 million for new tooling and equipment.

Council abated seven years in real estate taxes for the addition and five years in personal property taxes on the new equipment for a total savings of $3.3 million on the project, which is located along McKInley Highway on the eastern edge of Mishawaka.

More: AM General's military contract could reach $8.6 billion, resulting in jobs and investment

AM General is under a tight deadline to get the plant operational. After the building is completed, it is expected to begin receiving new equipment this summer and begin hiring and training up to 329 new employees with the goal of starting production of the JLTV next summer

In February, the South Bend-based company was awarded a five-year contract with up to five additional one-year contracts to build up to 20,682 JLTVs and 9,833 trailers for the military, beating out Oshkosh Defense, the original producer of the vehicle.

Besides adding new jobs with an average wage of $26.97 an hour, AM General has said the project will enable it to retain its current workforce of 371.

Since losing out to Oshkosh Defense in 2015 in a competition to produce the next-generation military vehicle to take the place of the Humvee, AM General has been largely producing Humvees for allies and refurbishing older models.

The company currently employs about 500 in the region, but that’s about half the number it had even 10 years ago.

Bill Schalliol, the county’s executive director of economic development, said the project ensures the viability of AM General for the next 10 years and beyond.

Jeff Rea, president and CEO of the South Bend Regional Chamber of Commerce, agreed with that assessment.

“This project could have a generational impact like the Humvee,” Rea said, pointing out that the predecessor of the JLTV was produced by AM General here for decades.

“This reaffirms our reputation for making the highest quality, state-of-the art military vehicles,” he added.

Battery plant alive

While the AM General project received final approval, County Council also took the first step to change the abatement proposal for a planned EV battery plant that could be built just east of New Carlisle.

General Motors initially planned to build the plant with LG Energy Solution, but that partnership for a fourth such plant fizzled several months ago. So GM is now working with Samsung SDI to build its fourth such plant.

More: Officials hopeful New Carlisle still in mix for $3 billion EV battery plant

With a price tag of $3 billion, the project would certainly be the largest in the county’s history and could employ nearly 2,000 workers. Other GM battery plants are located or planned in Ohio, Tennessee and Michigan.

Council will hold a special meeting May 23 to listen to public comment and complete the abatement from property taxes for 10 years and from personal property taxes for 15 years.

In both cases, the percentages are yet to be finalized, but the county previously approved changes that would create somewhat higher standards for the proposed site than are typically found in land that’s zoned for industrial use.

GM is expected to decide this summer where to build the battery plant. That project could also provide good-paying jobs for a generation of area workers if the county succeeds in its bid, Rea said.

Email Tribune staff writer Ed Semmler at esemmler@sbtinfo.com.

This article originally appeared on South Bend Tribune: St. Joseph County approves AM General project while vying for GM plant