TIPP CITY — On Monday, the Tipp City Council approved a 50 percent property tax abatement for the Meijer Distribution Center’s expansion in Tipp City.
The expansion of the Meijer Distribution Center has been a question for the business as to when it might happen since Meijer acquired the 160-acre property at 645 W. Kerr Road, Tipp City, in January 2018. The city annexed the property into the city in May 2019, and the council approved the creation of a Community Reinvestment Area (CRA) #6, which covers the 160-acre property.
On Monday evening during a meeting held in a phone conference, the council unanimously approved entering into a CRA Agreement with Meijer Distribution Incorporated.
“Staff has been working with the Meijer Distribution in putting this together,” City Manager Tim Eggleston said.
According to Community Development Director Matthew Spring, Meijer plans to construct a new 370,000 square foot automated warehouse structure on the 160-acre property located at 645 W. Kerr Road. As part of that agreement, Meijer is receiving a 50 percent, 15-year property tax exemption for the new warehouse, which is expected to be valued at $160 million.
Ashley Mack, a real estate agent for Meijer, on Monday said they are excited for this opportunity to work with the city of Tipp City, as well as for the opportunity to increase jobs and revenue in the city.
The project would retain 225 jobs and create 56 new jobs for the first year it’s open, with an estimated 65 new jobs in first five years. Spring also noted in a memorandum to Eggleston the project will employee 2,000 construction workers throughout the course of the build.
Approval from the Tipp City Board of Education was not required for this tax exemption since Meijer requested an exemption at the 50 percent level. However, since the project creates a new employee payroll greater than $1 million, the city of Tipp City is required to provide revenue sharing for 50 percent of the income tax receipts on all new employees for the 15-year tax incentive period with the school district. The increase in payroll, resulting from an anticipated 56 new employees in the first year, will be approximately $3,650,000. Based on that amount, the expected revenue shared with the school district will be approximately $27,375 per year.
Also during its meeting Monday evening, the council approved the purchase of a used rescue apparatus, a 2012 Spartan/Rescue 1 Truck, at a cost not to exceed $425,000. The council previously approved the purchase of a used rescue apparatus at a cost of $250,000 to replace is rescue No. 10 truck in February 2020, but staff explained that vehicle was sold to someone else before the city got to the opportunity to buy it.
“This vehicle is newer. It’s in better conditions. It also comes with a set of tools that the previous unit did not,” Chief of Emergency Services Cameron Haller said.
The Fork Fire District in Cheektowga, N.Y., near Buffalo, is selling the apparatus to Tipp City and currently holding it for the city. The apparatus has approximately 5,200 miles and 554 engine hours.
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