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Published: July 16, 2008 01:55 pm
Abatement moving slowly
By STEPHANIE DEBOLT
Correspondent
SYRACUSE, Ind. — Syracuse Technical Services businessman, Alan Tehan, will have to wait, just a little longer, to see if Syracuse Town Council members will approve his request for tax abatement regarding the expansion and construction of a $1.9 million business complex.
While the council approved designating an Economic Revitalization Area on Tehan’s property, they postponed approving specific details of the plan to a future date.
Tuesday evening, Syracuse attorney Steve Snyder spoke on Tehan’s behalf to the council, regarding a 10-acre tract of property on Sycamore Street Tehan wishes to occupy with his business, Technical Services.
Technical Services is an international engineering company that’s been based in Syracuse for more than 30 years.
Included in Tehan’s plans, are constructing two new buildings at a cost of $1.9 million. Expected costs of company technical equipment housed on site would be $3.2 million. Tehan has a two- to four-year window of completion for the project.
Snyder began his plea, focusing on what the town would gain by allowing Tehan to proceed.
“The practical effects are that it keeps this business in Syracuse. It enhances employment, and is good advertising,” Snyder said.
He added that Tehan would grow from 12 to 22 potential employees, 18 of those full-time engineers, with a “very significant” $1.3 million payroll. When combined with Technical Services existing payroll of $1.4 million, those dollars, Snyder said, would circulate seven times before leaving the community (based on an Indiana University study).
“That’s $16.8 million circulating before it leaves our community,” Snyder said.
If the council would support the tax abatement, Technical Services stands to save $50,245.52. Snyder explained that over the next 10 years, based on the existing tax rate of the undeveloped property, the town would receive $51,260.58, based on the current assessed value.
“You’re getting more than what Technical Services will save,”
The suggested 10-year tax abatement schedule would increase on graduated scale over 10 years, with the first year at zero, the second at 10 percent, and so on.
Snyder also commented on the benefits of construction and appearance to other businesses considering the Syracuse community.
“The atmosphere in a community that promotes business, attracts like businesses,” Snyder said, “That 10-acre tract has been empty for quite a while. I moved here in 1957 and it was empty then.”
Council member Brian Woody was not prepared to approve the abatement at Tuesday’s meeting.
“If the whole entire thing has to be decided tonight, I don’t know. I don’t want to throw the whole deal away because I feel every one of us would approve the EPA,” Woody said.
The council approved the creation of an ERA, based on the legal description of the property and will meet to discuss the next steps.
“We’re two steps further,” council president Larry Siegel said to Tehan. “When would you like to begin construction?”
“Tomorrow,” was Tehan’s only comment.
Budget review
Council members reviewed the proposed 2009 budget, noting changes and increases.
Town Manager Henry DeJulia said that the town is approximately $89,000 below levy. There could be additional projects the town might add, but DeJulia cautions against it.
“I’d take a wait-and-see attitude with it at this point,” DeJulia said. “What you have there is pretty bare bones, to be honest with you.”
The council noted increased costs of living, and congratulated all department heads for making good choices.
Siegel commended employees and said, “I appreciate everyone’s conservativeness.”
Council member Paul Stoelting asked Police Chief Tony Ciriello if his department had considered any change in their current take-home policy with town officers and their vehicles. Ciriello said that he had made some budgetary adjustments, moving an additional $10,000 from equipment budget to transportation, but that he had not prepared numbers to reflect what savings would be if officers left their vehicles at the station at the end of their shifts.
“Their vehicles are to take home and park, there is no personal use approved,” Ciriello said.
He also said that officers often report to scenes on an on-call basis, as well as use their squad cars to travel to court or other job-related activities. Ciriello said he also based his planning on $5 per gallon gasoline.
“We’re running very close to usage last year. We’re doing everything we can to conserve fuel,” Ciriello said.
Ciriello reported that the recent Fourth of July Holiday was a success, noting that his department logged absolutely no incidents or issues.
“Chad and Clint’s people did a great job, everything came off without a hitch,” Ciriello said.
However, Ciriello said that his department saw an activity increase in June.
“It’s not typical of what we saw last year,” Ciriello said.
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