Council to hold night meeting for tax abatement discussion
Community members' input sought
By Debbie Lowe

Smith

The Carroll County Council unanimously voted to designate The Andersons property an economic revitalization area on a preliminary basis at its Friday morning meeting. It was emphasized that the preliminary designation was not binding.

An abatement can only be granted in a area declared for economic revitalization. Before the area can officially receive the requested designation, public input must be sought. To that end, council members decided to hold an evening meeting, Nov. 27 at 7 p.m., to encourage community members to provide the required input. The location for the meeting has not yet been determined.

Economic Development Corporation Director Daryl Smith explained the tax abatement process to council members as he assisted with the request.

Smith said a tax abatement does not mean The Andersons would pay no taxes. He said the company pays approxim a t e l y $214,000 in property taxes each year and that would not be disturbed. The five-year a b a t e m e n t would phase-in the tax on $400,000 of additional bagging equipment at the local plant. Smith explained the first year would be a total abatement of the tax, the second year 80 percent of the tax amount would be abated and 60 percent the third year. Smith said the county would lose no money utilizing the tax phasein process.

"As EDC director," Smith said, "the first job I have is to the businesses in the county. We want to encourage present businesses to stay here."

The expansion of the bagging equipment will not translate into new jobs, according to Smith.

"It's about keeping present jobs here," he said. "This is a very legitimate use of tax abatement."

An Andersons company representative said that although no new jobs will be created with the new bagging equipment, "it sets the stage for growth."

Product is currently shipped to The Andersons' Maumee, Ohio, plant for packaging. With the new bagging equipment, the packaging will be done locally, which will save the company shipping costs.

"We need to promote people who are going to invest in our community," council member Jerry Hendress said.

According to a handout provided by Smith, tax abatements encourage local companies to stay and invest in the area, rather than move elsewhere. Companies already in the community and contributing to the county's productivity support the tax base. Seventy-five percent or more of new jobs created in the county will be created by present businesses.