Rittal plans to expand, add about 120 new jobs

City agrees to give the company breaks on income, property taxes.

URBANA — Urbana City Council unanimously passed a resolution Tuesday that will allow Rittal Corp., a computer enclosure producer, to expand operations at its Urbana facility, add nearly 120 jobs in three years and retain another 545 in an expansion.

Council members suspended council’s three-reading rule to approve the add-on resolution that will offer a tax exemption for 75 percent of the real property tax for 10 years for the $6.7 million expansion and provide an incremental income tax break on at least 118 new jobs of 80 percent in 2012, 60 percent in 2013, 40 percent in 2014, 20 percent in 2015 and 10 percent in 2016.

“We just passed it tonight so they could get started on it as soon as possible,” Council President Marty Hess said. “I’m glad they’re coming to Urbana. Urbana is finally getting a reputation for being business-friendly.”

The site will become Rittal’s North American headquarters and will combine its training and customer showrooms all on one site in the $6.7-million expansion, said Michael Morris, director of Champaign County Economic Development. It is unknown if Rittal will build a new facility or retrofit the interior of its current building on an 140-acre complex near Ohio 55 and Edgewood Avenue, he said.

Employees there will earn on average of $18.22 an hour, Morris said.

The expansion of Rittal, which moved to 1 Rittal Place near Ohio 55 and Edgewood Avenue in the 1980s from Springfield, is contingent on the state’s approval of a loan to Tech II Inc., a maker of plastic food packaging, to purchase its former plant on Baker Road in Springfield.

The Development Financing Advisory Council on Monday approved the $1.7 million loan for Tech II Inc. The loan has several more steps before it is finalized, including approval by the state Controlling Board, and the company is still negotiating the purchase with Rittal and the city of Springfield.

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