NSK Corporation in Franklin plans to invest in new manufacturing equipment that would bring two new product lines to the facility.
Daily Journal File PhotoTwo companies are planning expansions in Franklin that’ll be fueled by tax abatements approved by the city council.
NSK Corp. was approved for a seven-year personal property tax abatement on the company’s planned purchase of $14.9 million in manufacturing equipment to be added at their Franklin facility, 3400 Bearing Drive. The new, automated equipment will bring new products line to the facility and replace older machinery while retaining all current jobs, officials told the city council.
Rapid Prototyping and Engineering was approved for a five-year real property abatement to add a $900,000 flex space to their facility at 1424 Commerce Parkway. Adding this space will free up space in Rapid Prototyping’s current storage area to rent out to a soccer training company, which plans to open a year-round practice facility at the site, officials told the city council.
NSK
The investment brings a new type of taper hub bearing to the plant and will cycle out 30-year-old equipment that has reached the end of its usefulness. The old equipment is becoming obsolete because fewer cars are using the bearings it makes, said Kyle Steins, NSK Corp. plant manager.
The new product lines are expected to be used in vehicles for many years to come, Steins said.
“These lines will have a very long life. … These will be here for 20 years plus, providing value to our plant, our community,” Steins said. “This isn’t something NSK has been making in the past, it is a new market for us.”
Though the new equipment is automated, it will allow the manufacturer to retain all current jobs.
“If we didn’t get this investment, our job numbers would indeed decline,” Steins said.
Steins asked the city council to consider giving a 10-year abatement on the equipment out of respect for all the company has given back to the community in the past 30 years. He also said he fought hard to bring this product line to Franklin and hoped the city council would show their support for the investment by extending the timeframe of the abatement.
“This particular investment has been very hard fought to place this investment in Franklin. There were numerous places it could have gone across (NSK’s) global footprint,” Steins said.
The city’s economic development staff recommended five years, which is the typical standard for equipment abatements. Mayor Steve Barnett said this recommendation was made to keep abatement terms on equal footing and not choose favorites.
The Franklin Economic Development Commission, which provides a recommendation to the council on all abatements, compromised with a vote for seven years. Among the factors the commission considered are the multiple active tax abatements already in place for the company, and how the equipment will retain the company’s current 229 jobs, but won’t add any, said Shawn Taylor, a city council member who is part of the commission.
The council ultimately affirmed the seven-year recommendation by a vote of 5-0, with two members absent, at their Sept. 18 meeting.
A tax estimate prepared for the city shows NSK will save about $712,580 with a seven-year abatement. At the same time, the company would pay $1.16 million in taxes on the equipment, the estimate says. The company would also pay all other taxes owed on the building and other equipment, along with an economic development fee for this investment.
Rapid Prototyping
Rapid Prototyping and Engineering is a startup company that moved to Franklin from Edinburgh in 2018 and has continued to grow. As a result of that growth, the company is requesting an abatement to facilitate adding 8,400 square feet in flex space. This would expand their manufacturing space by 60% and add storage space, said Will Harvey, owner and general manager.
There are no new jobs being added with this investment but it would allow a new company to come to the city. The space that is currently being used as storage would be rented to a local soccer player development company, which would convert the space to an indoor/outdoor sports facility, Harvey said.
The company is identified on the Franklin Board of Zoning Appeals agenda for their Wednesday meeting as Soccer Central Academy. The company is seeking a use variance to provide sports training in a building zoned as Industrial General and develop outdoor playing fields at the site, city documents show.
Since there are no new jobs and there are several abatements for Rapid Prototyping already, the Franklin EDC decided to recommend a five-year abatement for the company, Taylor said. The council affirmed the recommendation with a vote of 5-0, with two members absent at their Sept. 18 meeting.
A tax estimate prepared for the city shows the company will save about $79,880, while paying just over $55,120. The company will continue to pay taxes on it’s building and other equipment, along with an economic development fee for this investment.
