KENDALLVILLE — Two industrial companies will be receiving five-year tax breaks as one adds on to its building and the other brings in some new equipment.
The two projects will result in more than $2 million in new investment in the city.
First up, Hendrickson was seeking a tax abatement on a planned 17,725-square-foot expansion to its 220 Progress Drive plant.
The new expansion will add on to the existing 65,000-square-foot building and give Hendrickson more room to expand and add equipment, company officials said in prior meetings. Currently, Hendrickson has no available space for new equipment and therefore can’t go out to bid new jobs and bring more work to Kendallville.
The building expansion will run about $1.75 million and, while Hendrickson is promising no additional jobs as a direct result of the new space, company officials said they expect they will add more workers and more equipment in the future as it takes on the new production and fills up the addition.
Council member Regan Ford noted that the expansion is in real property, not equipment, so it will be there generating new tax revenue for many years.
Hendrickson would save approximately $139,254 over the five-year span, while paying about $93,000 in taxes during the period before property taxes revert to 100%.
Mayor Suzanne Handshoe said the space is badly needed by the company, which is bursting out of its current buildings.
“Hendrickson has been a great company for the community and when I met with them three or four weeks ago … their plant expansion on U.S. 6 is already racked to the ceiling,” Handshoe said.
City council members approved the five-year tax break unanimously.
Second up, council members considered another five-year tax break request from Mahoney Foundries, located on Ohio Street.
Mahoney is seeking to add a $610,620 Hunter HLM-20 Matchplate Molding Machine to its plant at 209 W. Ohio St.
The new molding equipment should help to add two new jobs, with expected salaries of about $40,000 per year for the two positions.
The proposed five-year tax break would save Mahoney $20,810 over the five-year term, with the company paying $11,504 in taxes during the period.
Council members were also receptive to Mahoney’s tax break.
“Smaller companies are as important as the big mega-corporations,” Ford said.
“Mahoney has been here for years and years and employed a lot of people,” Council President Jim Dazey added.
Council members approved that tax break unanimously as well.