NTN Driveshaft clears another hurdle for Anderson plant

The Anderson City Council will be asked to approve the 100 percent tax abatement for 10 years on Aug. 13. The tax abatement was part of the city’s $25.1 million incentive package to the company.

With numerous business and community leaders in attendance to support the project on Tuesday, the Anderson Redevelopment Commission amended the city’s development plan to add the NTN project to the redevelopment plan.

During a brief public hearing, there were no questions or comments from those in attendance.

Ann Marie Bauer, attorney for the ARC, said the commission was approving the project agreement between NTN and the city, as well as the proposed real estate agreement.

Jim Riggs, president of NTN Driveshaft, said if the tax abatement is approved the company plans to invest $144.5 million in Anderson to create 311 jobs by December, 2016 and add 100 jobs by 2019.

The jobs are expected to pay $46,000 per year including benefits. The annual payroll for the 411 jobs is approximately $18.9 million with benefits.

The Anderson site containing 80 acres south of the Nestle plant on Layton Road was selected by NTN officials over a proposed site in Georgia.

When the plant opens in the 2016, it will have the capacity to produce 300,000 constant velocity joints for the automotive industry.

NTN provides the joints for every automobile company except for Volkswagen and BMW. NTN's plant in Columbus, Ind., doesn't have the capacity to manufacture the component parts.

NTN Driveshaft was the only bidder to purchase the 80-acre site. As proposed the company will purchase 40 acres for $1.6 million and 40 acres for $1.

The ARC will spend an estimated $3 million for the purchase of the 80 acres, depending on the appraised value.

Greg Winkler, executive director of the Anderson Economic Development Department, said the average of two appraisals was $31,000 per acre.

There is a 30-day waiting period by statute because the sale price of the 80-acres is less than the average of the appraised value of approximately $2.5 million.

Winkler said the purchase of the property by NTN at $1.6 million was a part of the incentive package offered by Anderson.

Riggs said the plan is to start construction on the 325,000-square-foot building as soon as possible and that production will start in late 2016.

Winkler said construction of the NTN building and infrastructure to support the facility will be taking place at the same time.

NTN will make an initial investment of $28.2 million for the building and $54.7 million in equipment during the first phase. The company will invest an additional $60 million for equipment in the second phase.

Riggs previously said the Anderson site was selected because of the skilled work force and the proximity to the Columbus facilities.

There is an incentive clause for the hiring of Anderson residents. For every local resident the company will receive 1.5 credits toward the 400 jobs by 2020.

The city’s tax abatement incentive package to NTN is being reduced from $15.7 million to $11.7 million, a savings of $4 million. Winkler He said the other savings will be in infrastructure costs.

The ARC will spend $7.7 million for a new water main, electrical substation, drainage and improvements to Layton Road.

Winkler said the ARC will be paying for the purchase of the land and the infrastructure with cash on hand.

The Indiana Economic Development Corp. is expected to provide $5.2 million in training grants to NTN.