By Erika Malone, The Tribune
During the Nov. 11 Seymour Common Council meeting, two companies received unanimous approval of two 10-year tax abatements for personal property.
Guardian Bikes and Cummins Inc. will make investments totaling over $23 million to the industrial development of the city.
A tax abatement occurs over a 10-year period in which companies pay 10% more on taxes each consecutive year. Companies do not pay any property taxes on the improvements in the first year of a tax abatement.
Jim Plump, executive director of Jackson County Industrial Development Corp., spoke on behalf of each company.
Guardian Bikes, located at 2230 D Ave. East and 845 A Ave. East in Freeman Field, is investing $15 million toward equipment that will allow them to manufacture bike frames, which are currently being imported from China.
Sam Markel, vice president of operations and manufacturing for Guardian Bikes, said the company has been importing bike frames since 2022, and with tariffs likely to increase within the next year, he wants to focus on bringing frame production to the U.S.
“In 2023, we manufactured 96,000 bikes. In 2024, we will end with 385,000, and we are projected to manufacture 500,000 bikes in the next year,” he said.
This project will begin Dec. 1 of this year and continue to the end of 2025, creating 40 new jobs with a $4.3 million payroll. The new jobs will be a combination of six-figure salary positions and hourly jobs in the low $20 per hour range.
The company will retain its current workforce of 204 workers and with current tax rates will pay over $360,000 over the 10 years.
They sell direct to consumers with distribution centers in California, Seymour and Pennsylvania.
Cummins Inc., located on 800 E. Third St., is projecting a new investment of $8,296,032 from now until the end of the year for capacity expansion of the Hedgehog line.
This project dates to 2010 and has continued to grow over the past 14 years, Plump said.
While no new jobs were promised, Cummins will maintain its current workforce of 881 employees with a payroll of more than $71 million.
The company will pay just under $350,000 a year on the investment, and along with a $5.8 million investment from earlier this year, the total investment for the project in 2024 is more than $14 million.
In similar business, the council’s industrial development committee comprised of council members Seth Davidson, Drew Storey and Chad Hubbard presented ordinance 150.38 that will allow companies the option to invest in community needs.
In reviewing the ERA evaluation ordinance for companies that want to obtain a tax abatement, the committee produced a Quality of Life Investment Opportunity List.
Davidson said this will be an opportunity for companies to invest in the community through certain projects or community needs.
“For example, if parks and recreation needs 40 new benches, a company could help with that investment if they so choose,” he said.
While participation in the investment opportunities is not required to obtain a tax abatement, this will give incentives to companies to invest not just in economic growth of the city but fulfill community needs.
Davidson said the list is still in the works, but the committee plans to sit down with various organizations, such as United Way, Jackson County Industrial Development Corp. and the Community Foundation of Jackson County.
“Once it gets through the second read, we will hammer out the details,” he said.
New Councilman Bob Beatty said this is a step in the right direction to see a return on investment from these tax abatements.
“The county has 81 tax abatements for next year,” he said. “We are giving incentives to these companies in the form of tax abatements, and we should be able to offer them the opportunity to participate in some of the other programs we have.”
State District 69 Rep. Jim Lucas, R-Seymour, gave his thoughts on tax abatements.
“They are a good tool to have in your toolbox, but you have to be careful with them,” he said. “We are seeing a lot of services go underfunded because we are not seeing a revenue go into them that could be.”
Lucas suggested council adopt an ordinance where the total amount of tax breaks the company receives is publicly stated.
