Perkins Schools right to pursue KBI

Register
Feb 12, 2014

 

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.

Comments

pptrsha

yeah perkins!!!way to go!! watch them shut the doors and then you get nothing!

google me

Should be real interesting to see what Perkins ends up with when they keep pushing and KBI say's bye.

Peninsula Pundit

We insist individuals pay their fair share of taxes, but not corporations. We don't want welfare and food stamps or unemployment, unless it's the corporation that gets the 'subsidy','grant' or gets federal help moving out of country and leaving many individuals jobless.
The only term that comes to mind in thinking about individuals,such as the ones posting above, who support corporations over their neighbors kids, is 'perverts.'

donutshopguy

Peninsula,

Today we work in a climate where businesses move to obtain the best financial support from governments. It's simply supply and demand. People want jobs and jobs are scarce. Government agencies develop business incentives to lure jobs to their area.

Perkins Schools should receive their fair share of taxes from KBI but are they willing to bet 700 local jobs? I'm glad I don't have to make that decision.

booster

I am your neighbor. I am a small business with one other employee. This past Christmas with health issues in that employee's family, I had to lay off the employee because the workload was thin, slow business. I did keep the employee on as long as possible paying through my personal savings.
In short, times were tough.
Now, I may not be as big a guy as KBI but I am the same.
This board would be up in arms if I got it passed to revalue my 225 thousand house to 25 thousand.
Think of the money I could save! Heck, I don't even have kids in the school system!

The outrage would be high toward me for such a move.
I think, as noted, KBI and Perkins should reach an agreement, not just KBI avoiding discussion and resolution.

Lil DAB

While schools continue to collect money, build new facilities, and pay handsome wages to administrators and teachers; property & business owners value decline while the cost of living increases.

http://www.presspublications.com...

From the Grave

I'm all for going back to putting ALL of the kids in one room with one teacher, Miss Crabtree, who make about $18,000 a year...

Ralph J.

Where did the $2.5 million number come from? I checked the parcel information and see 128.66 acres and $806,680 land value. That would be about $6253 per acre. $10,809,780 is the total valuation. If the factory was torn down, how much would it cost to clean up all of the chemicals from that land? 32-01325.000 is the parcel number. The plant was built in 1946 and not 1900 as the property tax information shows. Employment at KBI is about 800 employees including salaried and hourly.
What will Perkins do once KBI leaves and those 800 jobs are gone?

Just Thinkin

Hey, remember when everyone talked bad about overpaid auto worker's we paid our fair share and more, well lets see the dealerships in Perkins cough up thiers, come on Toyota,Fiat,VW,KIA and the rest of the bunch, you ran us out with your under cutting, not to mention all the un Americans who bought and still buy the imports even if they are made here they still are un American, Pay up, tax them, PS, dont respond first I dont care and second I love rattling the chains of the self rightous lol, Later got things to do,Hey you can lower my property tax, I cant afford it my job is long gone,

From the Grave

Just Not Thinkin is more like it.

oldpirate

If KBI leaves it won't be because they pay their fair share of taxes.

Imataloss

Agreed old pirate. Handwriting has been on the wall for a while. Maybe the school sees it to and wants to get the money before its gone - quite smart of them actually...of course, that won't stop the naysayers from blaming the school once KBI shuts its doors.

Julie R.

All this talk about KBI not paying their fair share sort of reminds me of the 2 women that bought the former Russell's Flower Shop to start a candy business only to get socked right away with an outrageous tax bill. The reason? The auditor and the lawyers for the school said the former owner, a Philip Pisano, never paid his fair share so the new owners had to pay it.

Really? Pay the fair share of taxes on property for the previous owner that got away without paying it?

So where was the fairness in that, Eeeeerie County?

Ralph J.

VENTRA TIFFIN LLC, formerly Ford has a few parcels in Perkins. How much will the school's lawyers be paid for going after KBI?
It doesn't seem fair to go after one property and exclude others like those properties on 250 and 4.

queenjhb

KBI is struggling , if they have that kind of tax money ,they should raise the pay of hourly employees, KBI will close before paying that high of tax, just like us, tax us to the poor house. Perkins should negotiate a more reasonable amount. As Perkins has wasted so much money [ new school blueprints] etc. Keep KBI as long as possible for jobs sake.

eriemom

Take a drive down Bauhart Road to see what happens when you piss off the auto industry. Ask the Vermilion school district how that worked out for them.

danbury dad

From what I hear it will all be a moot point in a little while as KBI is on its last legs. What will the abandoned property bring in to the school district?

Ralph J.

Sandusky Newspapers has six parcels listed for tax purposes.
http://erie.iviewauditor.com/Res...
Is that information correct?

Julie R.

I would really be curious to know what a local title company meant when they said that the fraud they were finding on properties during title searches at the Erie County courthouse was unreal. (this was in addition to all the fraud they found on my deceased mother & stepfather's Huron property that I already knew about but the joke courts in Erie County refused to address it) So what kind of fraud are they finding on properties in Erie County, anyway? I know when they do title searches, records are searched going back 50-60 years. I also heard they NEVER find fraud on property from years & years ago --- the fraud they are finding has all taken place in the last 10-15 years. (dating back to 2002 I know for sure)

Another thing I'm curious about --- if title companies are finding all this fraud on property in Erie County (and you can bet they are) why isn't anybody reporting it?

Julie R.

When it comes to avoiding questions, the Erie County auditor's office isn't one bit different now than it was back when Tom Paul & Hammond were auditors.

For example --- a few months ago I contacted that office, gave them the parcel number to property situated in the city of Huron, and then asked why there were a dozen or more properties situated in the city of Sandusky and the city of Vermilion listed as "comparable sales" to the property situated in the city of Huron. One of the properties in Sandusky that was listed was only assessed for tax purposes at $40K. Not even considering the different cities, how was that property a "comparable sale" to property situated in the city of Huron that was assessed at $130K?

The only answer I got was: "They couldn't do that." When I asked who "they" was, I didn't get an answer. When I asked if "they" did that just to intentionally appraise the property in Huron low, I didn't get an answer, either. He did say he was going to check into it and get back to me ........ but of course he never did.