The Plymouth City Council members voted Monday night to approve a resolution that grants a tax abatement request submitted by DAC Enterprises, LLC.
The estimated investment is $730,000 with $450,000 of that as a real property investment. People can check this company if they need the best property valuers. The other $280,000 will be in new equipment to expand and improve manufacturing and distribution processes. The investment will also retain 13 full-time employees and expand the workforce by four employees.
DAC Enterprises, LLC specializes in the manufacture and distribution of overhead doors. Operations recently moved from the Lake Avenue location to its new home on Markley Drive. Efforts have been made to revitalize a once-abandoned building to expand production.
A public hearing on the request was held with no public comment.
When considering approval of the resolution, Plymouth City Councilman Greg Compton said he supports the expansion of the business. He added that he is fine with the seven-year tax phase-in of real property tax abatement, but voiced opposition to the same length of time for personal property abatement.
Compton commented, “Personal property, the value of it, is automatically decline and so the value of it at the end of the term is going to be – it could be worth nothing for that matter. My suggestion is on an abatement of this size to do a four-year phase-in on personal property.”
He added that he wanted to set a precedent with this request.
Councilman Jeff Houin stated that guidelines are in place that outlines abatements and they could be reviewed, if deemed appropriate, at a later time. He believes since this request was previously advertised with the existing structure, they should not deviate from the terms.
Marshall County Economic Development Corporation President and CEO Laura Walls commented that these type of tax abatements are essentially the only incentive businesses and industries have to locate and expand in Marshall County since there is not a Local Option Income Tax.
“It’s my understanding that Marshall County has never had that,” stated Walls. “That is a large tool used by communities and counties to do job training, you can make infrastructure improvements – it’s very broad – the uses for that. Without that tool in our toolbox, we’re really limited to tax abatement and TIF Districts.”
A resolution was approved that confirms the adoption of a declaratory resolution designating certain real estate to be within an Economic Revitalization Area for purposes of real property and personal property tax abatement. Compton was the only councilman out of six in attendance opposed to the resolution. Councilwoman Shiloh Milner was not present to vote on the matter.
