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Tax abatement committee reviews compliance

By JOHN WALKER - jwalker@shelbynews.com

Members of the Shelbyville Common Council will now consider a series of tax abatement compliance statements following review by the council’s Tax Abatement Committee.

The committee, meeting with Mayor Tom DeBaun in City Hall, 44 W. Washington St., went through the statements that companies receiving the abatements must file each year.

“There are a bunch of them,” said Councilman Rob Nolley (R-3rd Ward), chairman of the committee.

Nolley, Councilwoman Joanne Bowen (D-1st Ward) and David Phares (R-At Large) form the Tax Abatement Committee. Phares was absent from the meeting Friday.

In order of review, Addison Real Estate LLC was awarded a 10-year abatement for 680 Elston Drive in 2012. That’s the location of Drilling World Inc.

The company estimated it would employ 17 people at combined salaries of $737,000; the statement says 14 are employed with salaries totaling $705,307. 

Brazeway Inc., 1109 Lincoln St., has five tax abatements currently, approved in 2010, 2012, 2014, and two in 2015. 

The company employs 80 workers at salaries totaling $5.2 million. The company estimated it would have 27 additional employees, according to its most recent statement.

The actual number is 25, the statement says, but at salaries totaling $1.63 million versus its estimate of $1.27 million.

“They’re one of our longest-standing employers,” DeBaun said. 

Freudenberg NOK, 1700 Miller Ave., had one tax abatement the council committee reviewed, initially approved in 2014. 

“Their numbers are down a bit, but their salaries are higher than estimated,” said Nolley.

The company expected to employ 192 people, but the actual number is 182, according to its compliance statement. However, total salaries are $13.75 million, well above the expected $9.4 million.

Hendricks Pointe Apartments LP, 415 W. Taylor St., a redevelopment of the former Hendricks Elementary School, received a property tax abatement in 2012.

Improvements boosted the assessed value of the property from $52,300 to $993,500, and three people are employed whereas one new employee was estimated, the statement says. 

“We get zero complaints,” DeBaun said, about the apartment building.

Knauf Insulation, 1 Knauf Drive, had six abatement compliance statements up for review, but two of them were from 2004 and may be inactive. 

The remaining four were initially approved in 2008, two in 2010, and another in 2012. Two are for Knauf’s building at 400 Walker St., and two are for the company’s facility at 400 W. Industrial Park Drive.

Walker Street has added eight employees, the same number estimated according to the most recent compliance statement, at combined salaries of nearly $467,000. The estimate was $316,000.

The Industrial Drive location has added seven employees, one above the estimate, at salaries totaling $477,000. The estimate was $240,000. 

Other compliance statements, in terms of actual total workers employed and their combined salaries following the abatements, were: 

n North Harrison Senior Apartments LP (one abatement) – three employees, $58, 878

n PK USA (57 abatements) – 609 employees, $26,979,043

n Plastic Moldings Co. Inc. (12 abatements) – 133 employees, $6,092,930

n Ryobi Die Casting (USA) Inc. (4 abatements) – 893 employees, $47,550,000

n Sankyo Seiki (America) Inc. (2 abatements) – 94 employees, $4,488,037

n Ten Cate Enbi Inc. (2 abatements) – 115 employees, $6,172,038

n Toray Resin Co. (5 abatements) – 133 employees, $8,134,417

n Triumph Controls LLC (3 abatements) – 55 employees, $2,563,591

n Triumph Fabrications (4 abatements) – 92 employees, $5,009,000

n Yushiro Mfg. America Inc. (5 abatements) – 54 employees, $3,853,000

Two of the Triumph abatements were from 2005 and one was from 2004, and also may be inactive.

The compliance statements are available for public review at the Shelbyville Clerk-Treasurer’s office in City Hall.

Now, the Common Council must vote on whether the companies have complied with the terms of their property tax abatement agreements. The council is due to meet again in City Hall at 6:30 p.m. on June 4.