McCORDSVILLE — The prevailing stance of town decision-makers is that a new metal manufacturing facility would be a desirable development and improve the local tax base.
Even more prevailing, however, is a feeling that’s the company’s incentive request is too much. Many residents of a neighborhood near the site being considered also have concerns.
Town officials and the company plan to continue discussing the project with the hope of finding common ground.
Philadelphia-based Southwark Metal Manufacturing Co. is considering moving its Indianapolis division to what would be a new facility of 300,000 to 350,000 square feet on the east side of Mt. Comfort Road south of County Road 600N. The light manufacturer specializes in sheet metal pipe, duct work and fittings for residential heating, air conditioning and ventilation systems.
Southwark’s Indianapolis division needs to expand and can’t in its current location in Lawrence. If the project comes to fruition, it would be McCordsville’s first manufacturing facility. With 220 to 250 employees, it would operate on two shifts, the first starting at 7 a.m. and the second ending at midnight.
The company is asking for a full tax abatement on real estate improvements and new personal property for 10 years. Taxes would not be abated on equipment the company would move from its Indianapolis facility, however.
Over 25 years, property taxes paid from the facility are estimated to exceed $7.5 million, according to the company.
Southwark is also asking for a reimbursement of up to $500,000 to address a wastewater issue at the site and a waiver of permitting, tap and other local fees controlled by the town.
Barry Wood, McCordsville Town Council president, said at a council meeting this week that the proposal is the kind of development that would make a good fit in the town. However, he could not support the company’s request for the tax abatement or reimbursement of up to $500,000 to remedy the site’s wastewater issue.
Southwark’s request for a complete abatement is unusual. Tax abatements in Hancock County and its municipalities are usually done on a declining schedule — a 100% break the first year, 90% the second, and so on until taxes are fully phased in after 10 years.
Wood said McCordsville needs tax revenue and infrastructure funding for things like the new Vernon Township Fire Protection Territory, a growing school system and a bridge taking Mt. Comfort Road over the railroad tracks that cross through town.
“As the project stands right now, with the ask that you have on paper, I don’t think I would support this project,” Wood said. “If we could work some other things out, then I would reconsider.”
Larry Longman, a McCordsville Town Council member, said he fears approving such a large tax abatement could set a precedent that would be difficult to maintain in the future.
Longman also said the project could be a chance to find as good of a solution as possible. He noted Southwark could potentially pick a different spot nearby that would be out of town limits but even closer to the Woodhaven neighborhood, where many residents oppose the project. The neighborhood is north of the proposed development, across County Road 600N.
“I think this is actually our opportunity to address the things we may not prefer, or else it could come back and be a negative for us later, especially for our residents we’re trying to protect down in Woodhaven,” he said.
Bill Spiegel, president of Southwark Metal Manufacturing Co., and representatives of Indianapolis-based McGuire Sponsel, an accounting firm assisting the company, attended the town council meeting.
“We welcome continued discussion with the town to determine if other things can be resolved, what will work for the project and what will work for the town in terms of the financials to make this site viable to go forward,” said Steve Brunson of McGuire Sponsel.
Randy Sorrell, executive director of the Hancock Economic Development Council, called a 100%, 10-year tax abatement “an aggressive stance” and said he’s not aware of such a tax break in the county in the past 10 to 15 years.
“What I do know though is there’s a lot of space between zero and a hundred,” he added.
Sorrell also said he likes the idea of forming a group to consolidate facts and concerns to try to find common ground.
McCordsville officials expressed concerns about Southwark’s proposal for two curb cuts on Mt. Comfort Road 900 feet apart as well. Spiegel said one would be for 10 to 15 trucks a day hauling loads out while the other would be for employees and steel deliveries. He said if the site only had one curb cut, a new inner road would have to be developed along the building, taking up space that could otherwise be used for a potential future expansion.
Mark Witsman, McCordsville town engineer, said the traffic that would be generated by the site indicates only one curb cut would be necessary.
Woodhaven residents made comments through the video-conference meeting’s chat and voice capabilities. Many expressed concerns about what the project would do to their property values and traffic in the area.
Nick Olson said he doesn’t think the tax abatement request is suitable.
“Basically what we’re saying here is that we will sacrifice this neighborhood and the property values for the interests of the town, and that’s completely inappropriate,” he said. “That’s not putting McCordsville residents first.”
Kurt Swadener, also a Woodhaven resident, said the numbers need another look as well.
“I seriously think that if this project is to move froward, this business needs to come up with a completely different financial plan,” he said. “This is totally unworkable.”
Greg Brewer, a McCordsville Town Council member who lives in the Woodhaven neighborhood, reiterated his opposition to the project as well.
“I think you guys have come to the table thinking that we need you a lot more than you need us,” he told Southwark and its representatives.
