Local News

O'Neal Steel granted tax abatement by Shelby County Council

The Shelby County Council approved a tax abatement for O’Neal Steel Tuesday to expand on its services at its Shelbyville facility.

The $4.1 million purchase of manufacturing equipment and real estate improvement will begin in November and be completed by the spring of 2023.

The tax abatement scales downward from 100% in the first year by 10% increments over the 10-year cycle.

The council will collect a yearly impact fee of 5% of the tax abatement savings, according to Eric Glasco of the Shelbyville law firm Stephenson Rife, LLP, who represented O’Neal Steel at the council meeting.

O’Neal Steel will purchase a Trumpf 6K Model 7000 Tube laser, Nitro Cube, Pressbrake and Material Handling Crane at a cost of $3,184,349. The equipment will be utilized in the processing and handling of steel products, including cutting, material handling, punching and shearing at its Shelbyville location, 841 N. Michigan Road.

Real estate improvements include a concrete pad as well as electrical, plumbing and heating connections at a cost of $916,740.

 

 

The new equipment will help O’Neal Steel (photo) support five locations in addition to the Shelbyville facility, according to Paul Geha of O’Neal Steel. Orders can be filled and shipped to O’Neal Steel facilities covering its northern reach from Peru, Illinois, to Pittsburgh, Pennsylvania.

“This is a very strong community for us,” said Geha to the Shelby County Council. “A lot of our employees have 20, 30 and 40 years of tenure with our company. We are investing quite a bit of money here. This location will be a spring load for our growth in the area.”

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