Two local subsidiaries of Carmel-based security-products company Allegion America are seeking roughly $769,000 in local tax breaks in return for a $13 million expansion that could lead to 158 new jobs in Marion County by 2020.
The expansion, announced in February, would upgrade three manufacturing and R&D facilities in Marion County operated by Schlage Lock Co. LLC and Von Duprin LLC.
The overall investments would help Duprin and Schlage retain 547 Marion County workers making an average wage of $25.50 per hour and add 158 workers making $23 per hour, Allegion said.
According to a tax abatement request released Tuesday by the Department of Metropolitan Development, Allegion plans to spend almost $11.6 million for new personal property at the three facilities.
Allegion said it plans to use about $7.2 million of the personal property investment at its facility at 2720 Tobey Drive, where Von Duprin has been operating since 1986. Von Duprin, founded in Indianapolis in 1908, was acquired by Allegion predecessor Ingersoll Rand in 1972.
The investment will go toward new painting, plating, fabrication and handling equipment, as well as replacement of HVAC, chemical and material-handling systems
The Tobey Drive plant also will require about $1.5 million in real estate improvements to accommodate the new equipment, Allegion said. The renovation will update the roof and reconfigure interior processes to improve work flow and safety.
The company is seeking a real-property tax abatement on the improvements at the Tobey Drive plant that will save it about $74,589 (or 50 percent) over the next 10 years. It will continue to pay about $146,000 annually in taxes on the existing property, as well as an estimated $15,000 annually on the improvements once the abatement ends.
Allegion also plans to spend roughly $4.2 million for new plating, handling, finishing and logistics equipment for its plant at 3502 E. 30th St., and $125,000 for analytical instrumentation and other machinery at its facility at 6802 Hillsdale Court.
The company is seeking a personal-property tax abatement for the Tobey Drive and 30th Street properties that will save it about $688,348 (or 59 percent) over the next 10 years. It will still pay about $462,185 in taxes on the new equipment over the abatement period, as well as an estimated $99,000 annually on the equipment after the abatement ends.
In addition, the company is asking for a 10-year personal-property tax abatement at the Hillsdale Court property that will save it $6,306 (59 percent) in total. It would still pay about $4,234 in taxes on the new equipment over the abatement period, as well as an estimated $903 annually on the equipment after the abatement ends.
The abatement requests will be heard for preliminary approval by the Metropolitan Development Commission on Wednesday.
Allegion—which sells security products for entryways under such brands as Von Duprin, Schlage and CISA—has more than 1,200 local employees and more than 8,000 workers worldwide.