From the Terre Haute Tribune Star:
Two Vigo County companies are seeking tax abatements for expansion projects, one of which is included as part of a county incentive package.
Applied Extrusion Technologies Inc. plans to invest an estimated $8 million for new equipment for metalizing and slitting oriented polypropolene packaging materials, including a winder, packout and upgrades for large diameter rolls.
The company plans to add 13 new employees with an annual payroll of $545,00, said Lou Britton, attorney for the company told the special projects committee of the Vigo County Council Wednesday.
AET currently employs 450 workers with an payroll payroll of $28 million. This figure does not include an additional 30 part-time workers, Britton said.
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The company is seeking a 10-year personal property tax abatement.
The tax abatement phases in taxes over a 10-year period, with no taxes paid in the first year, then 10 percent of taxes paid, with 90 percent abated, in the second year. The amount paid increases annually until the end of the abatement. The company will pay $57,000 in new property taxes over the span of the abatement, Britton said.
The special projects committee approved the abatement to be presented to the full Vigo County Council to vote on a preliminary approval vote at its June 12 meeting. The council will vote on a final approval in July.
The committee also heard a request for a 10-year real property and 10-year personal property tax abatement for ThyssenKrupp Presta Terre Haute LLC. The tax abatements are part of a previously announced county incentive package for the company to construct a 73,600 square foot addition to its facility in the Vigo County Industrial Park, south of Terre Haute. The company will also add three new assembly lines.
ThyssenKrupp Presta currently has 188 employees with an annual payroll of more than $2.44 million.
By the end of 2013, ThyssenKrupp Presta will add 120 new workers with an annual payroll of $4,487,435, in excess of $17 per hour, said Steve Witt, president of the Terre Haute Economic Development Corp.
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“Vigo County competed for this expansion with several other ThyssenKrupp facilities in the U.S. and Mexico,” Witt said. “To win this project for our community, we provided a local incentive offer that included 10-year real and personal property tax abatement as well as a $200,000 reimbursement to the company for project-related expenses associated with the expansion,” Witt told the council committee.
The company’s real property investment will be $5.1 million, while new equipment will be an investment of $16.7 million, Witt said. The company will pay $547,010 for real property taxes with the abatement, a savings to the company of $536,180 over the length of the abatement, Witt said.
ThyssenKrupp Presta will pay $498,696 in personal property taxes over the 10-year period, a savings of $742,724. The company’s total new taxes, both personal and real property, over the 10-year abatement period is $1,045,706, Witt said.
In addition, the Indiana Economic Development Corp. has offered an incentive package of $1.075 million from the state’s Skills Enhancement Fund for job training and $875,000 in Economic Development for a Growing Economy (EDGE) tax credits for a 10-year period.
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The committee voted to send the tax abatement, plus a $200,000 appropriation from the county’s Economic Development Income Tax (EDIT) fund for the incentive package, to the full council. The council will vote on a preliminary approval vote at its June 12 meeting. The council will vote on a final approval in July.
In other business, the committee sent eight tax abatements onto to the full council for review in June. The council reviews abatements annually. Committee chairman Brad Anderson, R-4th, said some companies are not up to their full employment, but “in this business climate” it could be difficult for a company to meet full employment.
Councilman Mark Bird, D-at large, said the abatements are “substantially in compliance,” adding companies cannot control a downturn in the economy. The abatements were for Ginovus; Marion Tool & Die Inc.; CSN, LLC; Staples; Certainteed Corp.; NIPSCO; ADVICS: and Danisco USA Inc.
http://tribstar.com/local/x1968170425/Companies-seek-Vigo-tax-abatements
