Ferdinand Town Council: Two companies apply for tax abatements

Ferdinand was the first community in Dubois County to issue tax abatements back in 1991.

On Tuesday night, the Town Council approved two new abatement requests.

Jenna Mitchell and Brent Geyer, representing Webb Wheel Products, Inc., explained the company plans to add a hub and drum assembly plant in Ferdinand’s industrial park (on PIC property). Property improvements will total $325,000 with $3 million in automated equipment, although no additional jobs will be created.

The company has a facility in Tell City but liked the prospects in Ferdinand for an expansion where they will built two high volume production lines.

According to Town Attorney Bill Shaneyfelt, the plan as proposed entitles Webb Wheel to a four year tax abatement, deferring taxes 100% the first year, 75% the second year, 50% the third year and 25% the fourth year. Based on the current tax rate, this would save the company $160,000 over the course of the abatement and would pay $96,000.

On the real estate, the abatement will save Webb Wheel $17,000 and they will pay a little over $10,000 during the abatment period. The council approved the proposal via Resolution TA 15-01 and scheduled a public hearing for Tuesday, August 11 at 8:45 p.m.

Steve Wahl and Kyle Hasenour from Best Home Furnishings were also in attendance for an abatement on a proposed $3.1 million in improvements. Based on the company’s plans, Best is entitled to an eight-year abatement, which figures out to 100% for five years, 75% in year six, 50% in year seven and 25% in year eight.

The plan is to build a 100,000 square foot manufacturing facility, hiring 20 employees with an annual payroll in excess of $500,000.

Wahl said Best could realistically add 30, 40 or even 50 jobs noting, “we can create jobs but can we fill jobs?”

The council adopted Resolution TA 15-02 and set Best’s public hearing for August 11 at 9 p.m.

Much of the evening was devoted to discussion about plans for phosphorous abatement. Jon Wetzel with Midwestern Engineering outlined where they are at with the $2 million project and said plans will be submitted to the Indiana Department of Environmental Management by the August 1 deadline.

However, he is concerned the town will not be able to meet the spring construction deadline as financing through Rural Development, the most prudent course for ratepayers both for interest rates and possible grants, is a laborious process with lots of hoops to jump through. Wetzel believes a request to IDEM to extend the time line is in order and council members agreed.

The council also:

•Discussed flooding problems with resident Larry Mundy who lives on 23rd Street and will involve engineer Steve Grundhoefer, possibly with a session during the August 11 council meeting.

•Learned US Senator Joe Donnelly (IN-D) submitted a proclamation to Congress honoring Ferdinand for its 175th anniversary (see next week’s issue pf Ferdinand News for the actual proclamation).

•Adopted a proclamation for Council President Ken Sicard to deliver to his counterpart in Dudenhofen, Germany when he vacations there and also approved purchase of a key to the city to accompany the proclamation.

•Agreed to advertise for the chief of police position and will accept applications from both inside and out.

•Accepted the low bid from Archeological Consultants of the Midwest ($1,600) to complete a DNR-required survey on CR 475 E for the phosphorous project. Since the scope may change the council approved up to $2,000.