Wednesday, April 24, 2013

Journal-Gazette Reports Richmond Approves Tax Breaks for Earth First and DKM Embroidery

From the Fort Wayne Journal-Gazette:

City Council members on Tuesday approved phasing in property taxes for two expanding businesses.

Earth First has built a new transfer station and recycling complex at its 4429 Allen Martin Drive site, a move the company says will retain 27 full-time jobs and create 14 more. The new jobs will pay an average $37,000 a year.

Earth First President Gregg Walbridge said it is the only complex in northeast Indiana that has the capability to recycle construction and demolition material with semi-automatic equipment.

The city’s Elissa McGauley said the $1.9 million expansion qualifies for a seven-year phase in of property taxes on the new building, which will save the company about $158,000, and a five-year phase-in of taxes on the new equipment inside, which will save it about $24,000.

Councilman Mitch Harper, R-4th, asked officials to clarify whether the city actually had the power to grant the tax breaks, as the property actually straddles the city border.

Earth First attorney Henry Najdeski said that while the old building straddles the line, the new building and everything in it is fully on the city side of the border.

Councilman Glynn Hines, D-6th, meanwhile, questioned the approval process for the facility, wondering how it was possible that the company was able to build and operate a recycling complex and transfer station without ever coming to the City Council for approval. Najdeski said the proper zoning was already in place for the land and only a special-use permit was needed, which can be granted by the Board of Zoning Appeals without council review.

The tax breaks passed 7-1; Hines voted “no.” John Crawford, R-at large, was absent.

The council also unanimously approved a phase-in of taxes for DKM Embroidery, which is adding $347,711 in new equipment at its 3203 Caprice Court location, which will create eight full-time jobs. That tax break will save the firm about $9,500 over three years.

http://journalgazette.net/article/20130424/LOCAL/304249971/0/SEARCH