SIDNEY – Two pieces of legislation adopted at Monday night’s Sidney City Council meeting will assist Emerson Climate Technologies with planned expansion and improvements of its facility at1675 Campbell Road.
Council approved an ordinance granting a municipal income tax job retention tax credit to Emerson. They declared it an emergency so the ordinance could be adopted immediately instead of after three readings.
The city of Sidney will provide a $500,000 tax credit in support of Emerson’s capital project. The credit will be paid over a four year period – $125,000 per year – beginning Jan. 1, 2018. Each tax credit increment will be paid one year in arrears so payroll and employment information can be confirmed by the city.
In exchange for the tax credit, Emerson will agree to retain their current level of employment —1,565 — at the Sidney facility for the full term of the four-year credit from July 1, 2017 through June 30, 2021. The number of full time equivalent (FTE) jobs retained will be confirmed with a formal agreement between the city and Emerson.
The ordinance also states that Emerson will maintain at least 1,126 FTE’s and $80,900,000 in payroll for four additional years beyond the term of the credit from July 1, 2021 to June 30, 2025.
Emerson is making an estimated investment of $100,000,000 in two phases for renovation of the existing office, lab and manufacturing spaces to transform the facility into a modern working environment. They will also construct a 20,000 square-foot addition for additional office space.
Council also approved a resolution for an enterprise zone agreement with Emerson which calls for a 10-year, 75 percent tax abatement.
Emerson officials had requested a tax abatement for the multi-phase project which includes rehabilitation and redesign of the existing facility and a 20,000 square-foot addition.
The proposed investment by Emerson includes addition/new construction, $7,800,000; improvements to existing buildings, between $56,500,000 and $102,200,000; machinery and equipment, $10,000,000; and furniture and fixtures, between $700,000 and $5,000,000. Total new project investment will be between $75,000,000 and $125,000,000.
Emerson also agreed to retain a total of 1,500 FTE positions with a payroll of $97.5 million per year.
The Tax incentive negotiating Committee met June 20 to review the application. The committee recommended a 10-year, 75 percent tax abatement on the real property improvement based on the amount of investment and retention of 1,5000 FTE positions.
Based on the Shelby County Auditor’s evaluation, the increased value of the improvements for property tax purposes will be an estimated $16.2 million to $26.2 million. The total estimated tax abatement over the 10-year period will be between $2.2 million and $3.6 million.
The project is expected to begin July 15, 2017 and all acquisitions, construction and installation will be completed by Dec. 31, 2021.
According to the resolution, Emerson will attempt to hire 50 percent of any new employees from the workforce in Sidney and Shelby County.
In other business, council:
• Adopted an ordinance assessing the cost of weed cutting or removal of junk from properties within the city limits. A total of 18 properties will be assessed a total of $2,017 for weed cutting and another 14 properties will be assessed a total of$6,875.12 for junk removal.
• Introduced an ordinance dealing with the vacation of the North Street right-of-way from Royan Avenue. The request was made by Wilson Health. The right-of-way goes into the hospital’s property and is used only be people going to the medical facility. Wilson Health plans to make 50 additional parking spaces in the area.
• Approved a resolution waiving the collection of real property assessments with the Shelby County Land Reutilization Corporation (Land Bank) on properties acquired by the Land Bank through a tax foreclosure within the city of Sidney.
The agreement waives the city’s assessment as long as the total amount doesn’t exceed $5,000. If the property is sold for an amount more than the total expenses the Land Bank paid, then the excess amount will be returned to the city to pay all or a portion of the waived assessments.
Mayor Mike Barhorst abstained from voting as he is a member of the Land Bank.
• Was reminded the July 3 workshop has been canceled and city offices will be closed Tuesday, July 4. Garbage and recycling will be delayed one day.
• Went into executive session to discuss pending or imminent court action. No action was taken.
Council’s next meeting will be Monday, July 10.
