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Council checks on abatement compliance |
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Wednesday, June 10 2009 |
On the same night the Columbia City Common Council got a crash course in tax abatements, the council also voted to acknowledge that several local businesses were in compliance with their ongoing abatements.
By CHRIS MEYERS
Staff writer
On the same night the Columbia City Common Council got a crash course in tax abatements, the council also voted to acknowledge that several local businesses were in compliance with their ongoing abatements.
All of the businesses in question are working on 10-year abatements and are at varying stages of their respective abatements.
First up was Bones Theatre, which is in its third year of a 10-year abatement for real property.
Although the council voted unanimously that the business is in compliance with the terms of the abatement, council member Nicole Penrod noted that some areas of the compliance form were hazy, a point of focus during the presentation on abatements from the Indiana Department of Local Government and Finance.
“There are some questions, but for the most part they are in compliance,” said Rosie Coyle, city clerk-treasurer.
One area in question was that the original abatement form did not specify an end-date for the abatement nor a limit on the amount designated for development of the property beyond the original abatement request.
“He started with $1.5 million and now he’s up to $2.8 million,” Penrod said.
Forms that don’t specifically spell out the terms of the abatement are common, according to DLGF representatives who spoke before the meeting, but should be avoided when possible.
“Leaving open ends allows everyone to take advantage of everyone,” said Terry Knee, who works in the assessment division of the DLGF.
Council members are not keeping a more watchful eye because they plan to turn down new or reoccurring abatements, but to make sure businesses and the city are following the proper requirements.
“You’re trying to give economic incentives, not punish someone for not filling out a form,” Fleck said.
Also approved for being in compliance with its real and personal property statements was Steel Tank and Fabricating Company, STAFCO, which will have new electrical service activated this weekend to meet the needs of the new equipment installed as part of the abatement.
“They are over what they’re estimate was,” Coyle said of the business which has two more employees and about $46,000 more in salaries than was expected when STAFCO first received its 10-year-abatement.
On deck next was Oak View Tooling Inc., a maker of orthopedics and similar instruments. The business is in its fourth year of a 10-year-abatement.
“They area a very precision operation,” said Jim Fleck, Columbia City mayor.
The business has four more employees and nearly $85,000 in salaries than originally estimated, but still fell short of hiring as many new employees as it had hoped.
Knee and John Toumey of the DLGF noted that a business being off by a few new hires or a small amount of new equipment — especially in today’s economic climate — were not factors that usually cause problems to an abatement.
“What we’re finding here is nothing different than we’ve found in other cities and counties,” Toumey said.
The council approved both the real and personal property compliance statements.
The final approval of a compliance form came for Warner Electric, which is in its seventh year of a 10-year-abatement.
Council members unanimously approved the compliance with benefits form, but questioned why the number of employees added didn’t equal the number it should when combined with existing employees before the new hires.
The business has not hired as many new employees as planned, but as Toumey said, that was to be expected in tough economic times and that the city should be thankful as many people are still employed at the business as there are.
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Last Updated ( Thursday, June 11 2009 )
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