SMS Shredding, a subsidiary of the recycling company Scrap Metal Services, based in Burnham, Illinois, will go in front of the St. Joseph County Council seeking a possible tax incentive package to assist with its soon-to-be-completed expansion plan at its auto shredder operation in New Carlisle, Indiana.
The company had sought a tax abatement package when it looked to add new equipment and to construct a building at the site. However, this past December, council members deadlocked on approving the company for the abatement package (4 to 4). While the assumption was that the tie killed the abatement, Bill Schalliol, the county’s economic development director, notes that a more careful reading found that a tie could allow the company to resubmit the proposal at the committee level.
Following the reintroduction of the request, members of the Land Use Committee approved the deal, which sends the proposal to the full county council for a new hearing. That hearing is scheduled for March 14.
Schalliol says he is optimistic that the council will approve the request the second time around. He points to the company heeding complaints of the noise expressed by residents by building a wall designed to reduce the noise.
Additionally, the company is in the middle of its capital investments, which will cost $3.5 million. The investment will include erecting a new building and installing more equipment to upgrade its auto shredding operation.
Schalliol says the company has already poured concrete for the foundation of the building and is in the process of bringing in equipment to the site.
Schalliol says he is optimistic that the county council will approve the proposal, which calls for a five-year personal property tax abatement and six-year real property tax abatement that would collectively save the SMS Shredding $200,000 in taxes.
“I’m optimistic they’ll approve it,” Schalliol says. “I’m hoping we can get some who were against it to go to the probusiness side and vote for it.”