Council OKs $5 million tax abatement for Roembke Manufacturing and Design
Members of the Ossian Town Council Monday night approved of a 9-year tax abatement on $5 million of equipment for Roembke Manufacturing and Design in the Ossian Industrial Park.
The equipment will include various CNC machines; laser cutting, grinding, optical measuring and mold press equipment; and various information technology equipment.
Roembke has a seven-year investment plan for the equipment and requested from the council that the abatement period be seven years. According to the statement of benefits supplied to the council members by Roembke representative Jim Berry, the plan is to add seven new employees with a boost in payroll of $350,000. The new equipment is also expected to aid Roembke in retaining its current workforce of 54 employees.
In the seven-year abated time period, Roembke could potentially purchase all of the equipment in one year, purchase some of it one year and the rest over several years or spread the purchases out over the seven-year period, Wells County Economic Development Director Chad Kline explained.
The Ossian Town Council participates in the point system for how it awards companies tax abatement. If Roembke does spread the purchase out over seven years, the potential exists that one or more of those years, the value of the equipment purchased would not equal the amount of points required to be granted a 9-year abatement by the council.
Kline explained that Roembke wanted to consolidate the seven years into one abatement request to save on the expense of future paperwork and the necessity to file separate compliance with statements of benefit with the council.