Building sale final

A Fort Recovery business has taken a big step forward to expand to Portland.
Portland Mayor Bruce Hosier announced Monday night that Fort Recovery Industries has completed purchase of an industrial building in the Portland Industrial Park for $383,554.63.
The purchase from the Portland Economic Development Corporation, which was finalized Friday, also includes 8 acres surrounding the building on county road 100 North, east of U.S. 27.
As part of the purchase agreement, the final year of a 10-year tax abatement on the building will transfer to Fort Recovery Industries.
This is the final year for the abatement, county auditor Nancy Culy said this morning and the action will save the company about $2,100 this year.
Fort Recovery Industries will be responsible for paying the property taxes due this year, Bill Bradley, executive director of Jay County Development Corporation, said this morning.
Property taxes on the property in 2010 were about $28,000, Bradley said.
Under a tax abatement, new property taxes are phased-in over time. Under the 10-year abatement approved for PEDC on the building built on speculation in 2001, the taxes increased by 10 percent each year.
On Monday, council members approved a tax abatement compliance form for the abatement. PEDC officials neglected to turn in the compliance form this summer. The Indiana Department of Local Government Finance required the council to approve the compliance form, city clerk-treasurer Randy Geesaman said this morning.
The company cannot take out another tax abatement on the building, but can for improvements to the building, Bradley said. In November, the Portland City Council voted to grant Fort Recovery Industries tax abatements on $625,000 in building improvements and the purchase of $3.9 million in die casting equipment. The equipment abatement is for five years and the abatement for the improvements to the building is for 10 years.
Fort Recovery Industries also was granted a total of $175,000 in Economic Development Income Tax funds. County and city EDIT officials voted to each grant the company $87,500. The company is receiving the funds in the form of a grant, but the promised total investment of $4.5 to $5 million must be made within three years. If the investment is not made, the EDIT funds must be repaid at a rate of prime plus 1. The EDIT packages were approved in November and also include a provision that at least 20 jobs must be created by the end of this year.
Bradley said equipment is being moved into the building and the business is expected to start up in its new location in about two months. The building and site was the former site of XPLEX Extreme Competition Park.
The new location is expected to create 20-40 jobs, with the hourly pay averaging $16.
Also Monday, council members:
•Learned that a public hearing on a proposed sewer rate hike has been delayed.
The hearing will be held Feb. 21 at the regular council meeting. Geesaman said city officials are still working on some figures.
City officials are proposing a 30 percent hike to help fund future sewer system improvements, such as storm and sanitary sewer separation projects.[[In-content Ad]]