By DAVID MELSON - email@example.com
The proposed new Duksan Electera America facility came one stop closer to reality Tuesday when the Shelbyville-Bedford County Industrial Development Board approved a PILOT (Payment-in-Lieu-of-Tax) program for the facility.
A similar program was approved for Marsh Brothers Industrial Properties’ new warehouse on Hawkins Drive.
The Duksan Electera plant on Highway 231 North will be free from property taxes for the first 7 years, County Attorney John T. Bobo explained.
“Then it picks up in year 8 on the tax rolls and once it reaches year 14 it’s fully on the tax rolls,” Bobo said. “There are certain triggers that if not met could cause them to lose some of the tax abatement.”
Duksan Electera must provide 100 new jobs to be eligible for PILOT, “and they’re knocking on the door of that right now,” Bobo said.l
The Hawkins Drive warehouse, connected with the Marshes’ trucking business, will initially pay no tax.
“In Shelbyville the three major transportation groups – that is, Big G, Titan and Nationwide – employ here over 550,” Bobo said. “So this is sort of an extension of that. Providing these warehouses to these outfits they are a lease. So this one would be years 1, 2, 3 you have complete forgiveness of tax, then in year 4 it goes 40-50-60 (percent) and then it ends and goes on the rolls at 100 percent then.”
Short-term tax relief programs such as these are commonly offered to new industries coming to communities.
“The function of this board is just to carry out the mandates of the city council and county commission,” Bobo reminded members.
Duksan Electera America Inc. is a South Korean chemicals manufacturer.
They propose to manufacture “several product lines of electrolyte sodium for lithium-ion electrolytic cells,” according to a press release from the firm when the project was announced. “The facility will be a combination of office and industrial space where raw, liquid and powder chemicals will be mixed for distribution."
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