The Perkins school district is doing its due diligence in pursuing a court case against KBI, the bearings plant at Perkins and Hayes Avenue. The district contends the current valuation for the 130-acre property -- $2.5 million -- is extremely low, resulting a loss of revenue for the district.
KBI bought the former New Departure/Delphi plant for $22.5 million in 2008. Assessments for properties usually align more with the purchase price, or market value of a property for tax purposes.
KBI has struggled for years attempting to overcome contract obligations with its former owner, GM, as it struggles to secure new work. The factory remains a very important jobs hub for the community, and local governments should explore every tax incentive opportunity there is to assist KBI in its struggle.
Tax incentives are negotiated packages, however, and that's not what an artificially low property assessment is. The school district is right to continuing pursuing a change.