The Pulaski County Council will be considering a property tax abatement tonight for a company headquartered in Francesville.
The Pulaski County CDC is making the request on behalf FRATCO, identified as Francesville Drain Tile Corp. in documents. The company’s headquarters reside in an economic revitalization area in Pulaski County, and are afforded certain economic development incentives as a result.
FRATCO Director of Operations Bill Champion says they look at the abatement as a cost offset for adding employees.
“What we found is that anytime we become more efficient by updating more equipment, more lines, more employees. Obviously we do it because we want to grow the company,” says Champion.
FRATCO is seeking the abatement for 10 years of property taxes on manufacturing equipment, and to undertake a few redevelopment projects. FRATCO operates locations in Iowa, Illinois, and Indiana.
The company says the investment costs about $1-million and allows them to create eight jobs in Pulaski County through the process. Champion says the abatement is a direct benefit to the business during their attempts to streamline operations.
Apart from the boost to their bottom line, Champion says the tax abatement will also allow FRATCO to make investments in employee training.
“When you buy big equipment and you make those kinds of changes, it always takes a little bit longer than you anticipate,” says Champion. “So I would say by the end of the third quarter, we’re already going to see a benefit.”
The percentage of property taxes abated will decline each year during the 10-year period FRATCO is receiving the benefit.
The Pulaski County Council will consider the resolution during tonight’s meeting at 7:00 EST at the Pulaski County Courthouse.
