A longtime Arnold piping company is looking to expand and bring new businesses to the city, but it is asking for help to make it happen.
Acid Piping Technology wants to have a new building constructed next to its current facility and is working with the city of Arnold to secure a Chapter 100 bond abatement that would lower the property tax costs for 10 years on that development and exempt the company from paying sales or use taxes on some construction materials.
APT has operated in its location at 2890 Arnold Tenbrook Road since 1991, said Alex Knoll, who owns the company with his brother, Fritz Knoll.
Alex Knoll said APT is the last stop for pipe cast in Ohio and Virginia before it is shipped to about 800 companies around the world.
The company plans to construct a 106,000-square-foot, multi-tenant industrial building at 2880 Arnold Tenbrook Road, an approximately 16-acre property next to APT, which the company purchased in 2013.
The building would cost an estimated $10 million, according to APT and consulting firm Steadfast City Economic Community Partners representatives, who discussed the tax abatement with City Council members during a July 10 work session.
“It is a major investment for us,” Alex Knoll said. “We hope everything goes smoothly. We hope to build a beautiful building.”
APT is asking to pay 5 percent of what the property tax on the new business would be without the abatement to non-emergency entities, such as the city and the Fox C-6 School District, for the first five years and then 25 percent of the property tax for five years after that.
The company also is asking to pay 50 percent of what the property tax would be without the abatement to emergency responder agencies, such as the Rock Community Fire Protection District and the Rock Township Ambulance District, for the 10 years.
After 10 years, the company would pay 100 percent of property taxes.
Arnold council members voted 6-0 during a July 10 meeting that followed the work session to begin the process of securing Chapter 100 bonds for APT. The Gilmore and Bell law firm and city attorney Bob Sweeney will work with APT to prepare documents to secure the bonds, which council members will have to vote to approve. APT will pay Gilmore and Bell an estimated $50,000 and Sweeney about $3,000 for their work, according to council documents.
Ward 1 Councilman EJ Fleischmann was absent from the July 10 meetings, and Jessica Bess resigned as a Ward 3 councilwoman on July 7.
Interim City Administrator David Bookless said the council might vote on whether to approve the Chapter 100 bonds during its Sept. 16 meeting. Council meetings typically are held at 7 p.m. on the first and third Thursday of each month at City Hall, 2101 Jeffco Blvd.
According to Steadfast City’s presentation, the Chapter 100 bonds would allow APT to retain its current 21 full-time employees and add five positions with average salaries of about $70,000 each. APT plans to use one of the six spaces in the new building for storage, Alex Knoll said.
The Knolls plan to rent the other five spaces, which would range between 12,816 and 19,694 square feet, to other similar companies. The new businesses would likely use the spaces for offices and storage, and the new businesses may create 35 to 105 new jobs in the city, according to Steadfast City’s presentation to the council.
“The project brings several benefits to the city and community as a whole,” Bookless said. “Keeping and growing these jobs in Arnold means more people working here, which also supports local businesses. Employees often buy lunch, get gas and shop nearby, contributing to our local economy.”
Incentives
Council members voted 7-0 on July 17 to allow APT to begin purchasing some construction materials without paying state and local sales or use taxes before the Chapter 100 bonds are approved.
That decision allows the company to buy items like sandpaper, fuel to run equipment, drill bits and other materials that are consumed during construction. APT would still have to pay sales or use taxes on items like hand tools, water coolers and bulldozers, according to council documents.
“It helps immensely with keeping the timeline on construction going,” Alex Knoll said of being able to start ordering and purchasing materials. “Many of these items, such as custom windows, can have long lead times.”
He said the company hopes to complete construction of the building during the first three months of next year.
Steadfast City projected that after the land is developed, Fox C-6 would collect $158,514 in property tax over the 10 years if the abatement were in place. The firm also projected that without the land being developed, the school district would collect $10,718 in property tax over that same period, meaning Fox C-6 would collect $147,796 more if the tax abatement were approved.
Fox C-6 Superintendent Paul Fregeau said district representatives have had numerous conversations with Steadfast City and ACP about the proposed tax abatements over the next 10 years.
“We are remaining neutral on this development,” he said.
The firm projected Arnold would collect $6,285 more in property tax revenue from the site over 10 years if the tax abatement were approved. The city would collect $6,741 in property tax revenue after the building is completed, instead of $456 if the land were not developed, according to Steadfast City.
“The short-term support helps make the project feasible, while the long-term return is substantial,” Bookless said. “Once complete, the new facility will generate significantly more in tax revenue than the site currently does. It also represents a major private investment in Arnold’s future and reinforces the city’s reputation as a great place to do business.”
According to Steadfast City, Rock Township Ambulance would receive $21,529 in property tax after the development is completed with the abatement in place. If no building is added, it would receive $468 in property tax.
Chief Jerry Appleton said because the district’s property tax rate is so low – approximately 1.929 cents per $100 assessed evaluation – it does not make sense for the district’s Board of Directors to approve the abatement.
In August 2018, Senate Bill 870 was passed allowing ambulance and fire protection districts and counties operating a 911 center providing emergency or dispatch services to receive a reimbursement between 50 and 100 percent of the property tax revenues the district or county would have received in the absence of a property tax abatement or exemption provided for under Chapter 100 bonds.
Appleton said when Steadfast City talked to the board about the proposed tax abatement at a recent meeting, no action was taken.
“They (Steadfast City) were not aware of our goal to eliminate property tax for general revenue and that we were, for all intents and purposes, going to be at or near zero by 2026,” he said. “We are looking at a preliminary 2025 rate at just around 2 cents.
“That being said, the board and district certainly support growth and business within our community; it just didn’t really make sense to even consider it when our tax base is what it is.”
Rock Fire Chief Kevin Wingbermuehle said the district has discussed the tax abatement with Steadfast City and APT.
According to Steadfast City, Rock Fire would collect $142,482 over 10 years after the building is finished with the tax abatement in place. The firm said Rock Fire would collect $3,100 over that same time without the development.
“At this time, the Board of Directors has not issued an opinion or decision on this matter,” Wingbermuehle said on July 25.