New jobs may result from tax reductions

The city's Industrial Development Board approved two tax abatement requests for expansions to existing Shelbyville businesses that may result in new jobs.

Last week, Chamber of Commerce head Walt Wood told the city council that he had been working with two existing companies that were in the process of planning expansions, but stressed their plans are not yet complete.

One of the abatements passed by the board is for an investment in new equipment at ALBEA on Madison Street while the second abatement is for real estate expansion and additional equipment for "Project Walking Horse," according to the board's agenda.

ALBEA

The ALBEA abatement is just under $6 million dollars while "Project Walking Horse" was at $4 million, attorney John T. Bobo said.

Wood told the board Wednesday that the ALBEA project is ongoing and involves an number of jobs "and projections for additional jobs," but was not sure of how many. There is also the possibility of additional equipment purchases "and activity over the next year," he said.

Wood said the investment was good for Shelbyville and that ALBEA is "confident in the community and its workforce" to invest this amount of money.

ALBEA is the commonly most commonly, and formerly, known as American Can.

'Project'

As for "Project Walking Horse," Shelbyville is in competition with several other sites -- two in this country and one overseas. The project involves equipment purchases and upgrades, as well as possible building and land improvements, however specific details about what this project is have not yet been revealed.

The board of directors of the firm behind "Project Walking Horse" meets today to make their recommendation as to where the project would be, Wood said.

"Both of these (abatements) would add jobs to our community significantly," Wood said.

Gradual taxes

Based on capital investment and job creation, the abatements will be on a declining scale, such as a zero percent tax in year one, 50 percent tax payment in year five, with a full payment in year 11.

The actual amount of the proposed abatements would be based upon assessment and tax rates for that year, equaling about a 50 percent abatement over a 10-year-period.

Benefits

The tax abatement is the standard one that Shelbyville and Bedford County have used in the past through the Industrial Board, city manager Jay Johnson explained last week.

Johnson said because the two possible expansions represents new investment in the community, "it's additional tax revenue, so even though we're abating a portion of it, whatever we get is still new, it's still growth."