OAKLAND CITY—Oakland City council members voted yes Tuesday to special tax abatements and EDIT funds to attract a new manufacturing company into town.
“We have an opportunity to welcome an investment into our community by Shamrock Engineering,” said Gibson County Economic Development Corp. CEO Todd Mosby.
Shamrock Engineering is a systems integrator company. The 15-year-old company builds and designs equipment for different industries. CEO David Dunn attended the council meeting.
Shamrock is located on East Virginia Street in Evansville in an older building that is 30,000 square feet, which has a personal and real property assessment of over $1 million, Mosby said.
The 28 employees (electricians, machine builders, welders and others) live in surrounding areas including Gibson, Pike, Vanderburgh and Posey counties.
Shamrock Engineering pays an average salary of more than $50,000, plus benefits, according to information provided by the company. Educational assistance is available for employees who qualify.
“As you can see, Shamrock Engineering is the type of employer any community would appreciate hosting,” Mosby said.
The company is purchasing the former medical center past the Oakland City Country Club, off Ind. 64, and plans to add between 12,000 and 15,000 square feet to the building.
Terms for Shamrock Engineering to come to Oakland City include a 10 year real property tax phase-in, where Shamrock would pay approximately $15,640 a year over 10 years.
When abating those taxes on a decreasing scale, the company would pay $5,570 the first year, $6,070 the second year, $7,580 the third year, $9,990 the fourth year, $10,600 the fifth year, $11,600 the sixth year, $12,620 the seventh year, $13,630 the eighth year, $14,630 the ninth year, and then the full $15,140 in rural property taxes the tenth year.
The abatement would save Shamrock $49,680 but still pay the city of Oakland City $106,540, Mosby said, according to estimates by H.J. Umbaugh and Associates.
Everyone in Oakland City should benefit from the expanded tax base, Mosby said, as long as their own personal assessed value doesn’t increase.
Mosby also suggested Oakland City provide Shamrock Engineering with $50,000 ($10,000 a year over a five-year period) from the city’s share of Economic Development Income Tax (EDIT) revenue, beginning in 2015.
A training grant of up to $10,500 has been offered by the state, Mosby added.
Indiana Economic Development Corp. is also prepared to offer a $30,000 grant to help serve improvements to the proposed site, Mosby announced.
Shamrock has been courted by other cities and states as well, Mosby pointed out.
A seven-year abatement would save the company $40,180 compared to $49,860 with a 10-year abatement, Mosby said. Revenue to the city would be $116,220 as opposed to $106,540.