News
Tax abatements recommended for Reliable PMW
1/13/2012
Author: Dennis Nartker
Published by: The News Sun
The City Council next month will consider three tax abatements for Reliable Production Machining and Welding for its acquisition and occupation of a vacant industrial building, rehabilitation costs and new equipment.
Thursday, the Kendallville Economic Development Advisory Committee reviewed the company's tax abatement applications and unanimously recommended to the council a resolution supporting the abatements.
"We're pleased they're occupying a vacant building," Mayor Suzanne Handshoe commented at the EDAC meeting. "They've been in Kendallville for 66 years. It's great to help a local company grow."
Reliable purchased a 135,000-square-foot building at 301 W. Ohio St., across the street from its facility at 300 W. Ohio St. for $200,000, according to its abatement application. The building has been vacant since 2009, when DriveSol closed.
The EDAC recommended three years of abatement on the building with an assessed value of approximately $1.5 million. EDAC members noted the difference between the purchase price and the assessed value.
Chuck Drerup, Reliable PMW president, said he believes the property assessment by Noble County is "overly inflated" and said he may seek a reassessment. If the building is reassessed, a tax abatement would apply to the new assessed value in the second year of the abatement.
Indiana's so-called "dinosaur law" allows for tax abatement on an enhanced schedule on industrial buildings that have been vacant for at least one year, said Jim Atz, Region IIIA executive director, who is handling the tax abatement requests for Reliable PMW.
The EDAC recommended 10 years of abatement on $200,000 of rehabilitation for the building that includes crane systems, overhead doors, insulation, heating, ventilating and air conditioning and interior remodeling and repair.
Ten years of abatement also was recommended for $120,000 worth of new manufacturing and telecommunications equipment for the building.
Reliable PMW's expansion will create 10 new jobs and retain the company's current 104-employee workforce, the applications said.
Patrick Hess, EDAC chairman, endorsed the tax abatements and the company's involvement in the community.
"It's a drop in a bigger bucket," Hess said. Reliable PMW participates in United Way of Noble County and contributes to local charities, according to the tax abatement application.
The company has three facilities in Kendallville and manufactures hubs, axles, machined parts and welded and machined assemblies for the turf care, construction, agricultural, recreational vehicle and marine industries.
Reliable PMW has added more than 40 employees since a steady increase in production began in the spring of 2010.
On Feb. 7, the council will conduct a public hearing on the three-year tax abatement's enhanced schedule before considering all three abatements. Back to Top