NEW HAVEN – A public hearing establishing an economic revitalization area and tax incentives for a company locating to that area drew no comments – either for or against – during a New Haven City Council meeting Tuesday.
Tax abatement is a way local government can entice new businesses or retain existing jobs and exempts all or a portion of a companys increased assessed value on new investment from property taxes.
Custom Engineering & Fabrication will invest $50,000 in manufacturing equipment and $50,000 in the property at 5225 New Haven Ave. The company, which also has a facility at 2002 Coliseum Blvd. S., provides processes and solutions for steel, asphalt, recycling and similar industries.
The property tax abatement will save the company between $6,000 and $7,000 over a five year period, said Scott Harrold, senior economic development specialist for the Allen County Department of Planning Services.
A separate two-year agreement for the vacant building will save the company $19,222. That two-year incentive involved a vacant building deduction, which can only be granted if the building has been vacant more than one year.
Custom Engineering will hire eight to 10 new employees with an average annual salary of $28,000 plus benefits, Harrold said.
New Haven to raise aging water tank
In other business, the council approved using $500,000 of the citys water revenue bond funds to elevate a large water storage tank on Ryan Road.
Keith Schlegel, New Havens director of engineering, said the elevation was necessary to put the tank back in service and to increase water pressure on the east side of the city.
The cost includes engineering and construction costs, Schlegel said.
The tank is starting to show wear and tear and may be in need of refinishing inside and out, Schlagel said.
The tank elevation was not on the water departments original project list, but must be done, Mayor Terry McDonald said.
The tank will be elevated 19 feet and must be raised to comply with new requirements established by Fort Wayne City Utilities.
New Haven buys its water from Fort Wayne.