“In the short period of two weeks, excellent progress was made resulting in the payment of the real estate taxes,” Murrell said. “We are very pleased with the access and communication with the attorney for the Chrysler Group.”

Murrell said Chrysler Group LLC will pay all the property taxes owed to Howard County in 2010.

He said Howard County is the first taxing entity in the U.S. to reach an agreement regarding the payment of taxes.

Hershman, however, was critical Friday of the Chrysler Group LLC’s decision not to pay the entire property tax bill.

“I think it’s reprehensible. This is not only a firm refusing to pay taxes that will provide it with police and fire protection, but it’s also putting the burden on the back of a community already struggling,” Hershman said.

He said the fact Fiat acquired Chrysler through a federal bailout program made the non-payment worse.

“It adds insult to injury, because it’s a firm which has succeeded because of people who do pay their taxes,” he said.

Howard County Council President Dick Miller said Friday he thought the county would have no choice but to ask for a state loan.

“At this moment, as far as the county operations are concerned, I see almost no way but applying for that loan,” Miller said. “Then we have to face the reality that it is a loan. So then we’ve got to determine how to pay it back.”

This is the second time Howard County taxing units are seeking loans from the state’s Rainy Day Fund.

When the Delphi Corp. filed for bankruptcy protection in 2005 the legislature approved as much as $3.2 million in loans to local taxing entities.

Those loans have to be repaid in 10 years or whenever the outstanding tax bill is paid.

Miller said Friday’s news was especially difficult, in light of the assistance the city and county gave to the former Chrysler in the past.

When the former Chrysler Corp. wanted to build the Indiana Transmission Plant at U.S. 31 and Smith Road, the city and county contributed $10 million in infrastructure improvements, along with tax abatements.

The new company is now trying to obtain tax breaks on the two ITP properties by filing an appeal with the Howard County Assessor, asking for a reduction in the assessed value of those plants.