SMC Corporation of America received a 10-year tax phase-in by the Noblesville Common Council Tuesday evening. The Japanese company’s North American corporate headquarters is expanding its facility at 10100 SMC Blvd. in Noblesville’s Corporate Campus by 600,000 square feet. Officials said the expansion cost is approximately $19 million.
The 600,000-square-feet addition will be constructed at both the east and west sides of the building. Chad Bosler of SMC said 360,000 square feet would be used for production space and 240,000 square feet would be for warehousing.
“We have 900,000 square feet under roof now, and after the addition, it will be 1.5 million square feet,” Bosler said.
The terms of the tax phase-in allow SMC to gradually pay taxes on its construction while the city receives property taxes on land that would otherwise be undeveloped. In the first year, no money is collected. The phase-in gradually increases from $26,289 in the second year to $499,498 in the 10th and final year. Noblesville will collect $2,655,224 during the 10-year phase-in. SMC will save $2,602,646 in property taxes with the phase-in.
“Noblesville is a very, very attractive option to expand,” said Katie Culp, site consultant with Cassidy Turley. “A tax phase-in of 50 percent taxes in a 10-year term going to the city and 50 percent savings for SMC plays a role in making this economically feasible.”
SMC, a global pneumatic technology developer and manufacturer, moved its headquarters to Noblesville in 2008. At the time, the company had 458 employees in its $30 million 627,500-square-foot building. In September, the company purchased approximately $5.5 million worth of new equipment as employment increased to 610 people.
Bosler said construction is expected to begin in May and completed by September. Jobs created will continue through 2017.