Commissioners to ponder tax abatement extension

Draw of $70,000 against original $215,000 grant promised
Some of the jobs "created" were for Canadian workers

Waco – Due to delays in relocating key employees to Waco from Canada, Tri-Van Truck Body is asking the approval of McLennan County commissioners' Court to extend a 5-year tax abatement and grant for the creation of 43 new jobs.

The original term of the agreement was from January 1, 2008 to December 31, 2012. The term would be extended to December 31, 2013.

Using a base line of 0 jobs in 2007, the agreement called for the company to spend $1,000,000 in improvements to the real property on Gholson Rd. and $500,000 in personal property improvements in addition to the creation of the new jobs in order to receive an incentive grant totaling $215,000 in cash.

If commissioners and the Waco City Council approve, the Waco Mclennan County Economic Development Corporation will pay the next draw against the incentive grant and extend the tax abatement, which called for a 50% reduction in property taxes the first year, 30% in year 2, 20% in year 3, 10% in year 4, and 5% for year 5.

In another proposal, County Attorney Mike Dixon has crafted an assumption agreement that would allow a similar arrangement to be transferred from Woodfall Equipment, a corporation doing business as Phoenix Equipment Company, to TUC, which bought the assets Woodfall acquired from Genie Industries, Inc.

The agreement between the economic development corporation allows a 40% tax exemption for five years on a 15,000 square foot building constructed on property located on Panther Way with an assessed valuation in 2005 of $1,271,393.

In addition, using a base line of 125 existing jobs, the company would be extended an additional 10% tax abatement for creating, filling and maintaining 20 new jobs if two-thirds of the new hires actually live in Waco.
Draw of $70,000 against original $215,000 grant commitment

Waco – Due to delays in relocating key employees to Waco from Canada, Tri-Van Truck Body is asking the approval of McLennan County commissioners' Court to extend a 5-year tax abatement and grant for the creation of 43 new jobs.

The original term of the agreement was from January 1, 2008 to December 31, 2012. The term would be extended to December 31, 2013.

Using a base line of 0 jobs in 2007, the agreement called for the company to spend $1,000,000 in improvements to the real property on Gholson Rd. and $500,000 in personal property improvements in addition to the creation of the new jobs in order to receive an incentive grant totaling $215,000 in cash.

If commissioners and the Waco City Council approve, the Waco Mclennan County Economic Development Corporation will pay the next draw against the incentive grant and extend the tax abatement, which called for a 50% reduction in property taxes the first year, 30% in year 2, 20% in year 3, 10% in year 4, and 5% for year 5.

In another proposal, County Attorney Mike Dixon has crafted an assumption agreement that would allow a similar arrangement to be transferred from Woodfall Equipment, a corporation doing business as Phoenix Equipment Company, to TUC, which bought the assets Woodfall acquired from Genie Industries, Inc.

The agreement between the economic development corporation allows a 40% tax exemption for five years on a 15,000 square foot building constructed on property located on Panther Way with an assessed valuation in 2005 of $1,271,393.

In addition, using a base line of 125 existing jobs, the company would be extended an additional 10% tax abatement for creating, filling and maintaining 20 new jobs if two-thirds of the new hires actually live in Waco.