Two resolutions were resolved regarding tax abatements for American Woodmark this week at the Gas City Council meeting.
Charity Bailey, the Senior Director for Economic Development Services at the Grant County Economic Growth Council, presented the resolutions in place of Executive Director Tim Eckerle.
Caleb Kerr, the director of manufacturing for the Gas City Area Chamber of Commerce, was accompanied by American Woodmark Assistant Controller Wendy Harris.
The two resolutions dealt with tax abatements, but the requests were highlighting different aspects of the property in question. The first resolution dealt a “real property” tax abatement. It dealt with acquiring and utilizing an older real estate property while also receiving a tax credit.
This credit would include additions to the existing structure and remodeling or repairing the structure in a way that increases the property’s assessed value. These tax deductions can last up to 10 years once approved.
American Woodmark applied for the real property tax abatement for the former custom assemblies and packaging building at 5100 Eastside Parkway in Gas City.
Without discussion of the first resolution, council members authorized the maximum ten-year tax abatement with a 4-0 decision.
The second resolution dealt with “personal property” tax abatements that apply to the use of new equipment Kerr highlighted in the discussion.
Council asked clarifying questions about whether the company will be utilizing the old ADG building for this new equipment or where else it may be used. Kerr assured council that the ADG building project is only one phase of numerous projects that could be completed with the tax abatement, if received.
“There’s really several phases to this. One involves what we are doing with the old ADG building, which in turn will lead to an additional assembly line being installed,” said Kerr. “We are also asking for credit for several more millions of dollars of projects for other operations such as our painting and staining of product.”
Similarly to real property tax abatements, the personal property tax abatement deals with taxes generated by an increase in assessed value due to the implementation of one or more of four different eligible types of new equipment.
The eligible types are manufacturing, logistical, distribution, research and development, and information technology and must fall under the dictated legal definition of “new equipment.”
This resolution would amend American Woodmark’s personal property abatement to 100 percent for five years due to the introduction of new equipment, which will then be used for the new building, the new assembly line, and many other additional projects.
During the discussion, Gas City Mayor Bill Rock questioned what exactly the personal property tax abatement would entail, inquiring about whether it will be utilized for the ADG building or the assembly line and where these might be in the plan.
According to Kerr, this information has not been finalized, but the plan Kerr gave council should be similar to the finalized product, and Bailey will immediately forward the information to council as soon as it becomes available.
Regardless, without any further discussion after Kerr’s statements, council approved the resolution with a vote of 4-0.