Hope business seeks tax breaks for expansion

A Hope business is planning to invest about $700,000 in its Raymond Street facilities.

Hope Town Council is set to consider a tax abatement request from Long Family Properties and Indiana Custom Fabrication at a special meeting at 5:30 p.m. today.

At last week's regular council meeting, Stephanie Long explained that the fabrication company makes racks for the automotive industry. In the three years it has been in operation, it has already experienced significant growth.

She said that in the first year the company only had about $21,000 in orders. In the second year, that rose to $300,000 and more than $750,000 in the third year. To meet those demands, the company needs to expand beyond its current building owned by her father. The company plans to purchase property across the street and build a new 10,000 square foot facility at a cost of about $500,000.

But before making that purchase, the company wanted to get approval from a tax abatement from the Hope Town Council. Under a tax abatement, property taxes on new construction, improvements or equipment are suspended for the first year, and then gradually phased in over the length of the abatement -- usually 10 years. 

Long said that the company also needs to purchase new equipment include a high-tech laser fabricator at a cost of about $200,000. She said the company also plans to come back to the council to seek another tax abatement at the time of that purchase. 

About 30 people have been employed at the company at various points over the past year. The expansion would allow the company to eventually add 30 to 50 more employees including four just to run the laser. The average wages for the company are $18.76 an hour, she said.

The council members seemed in favor of the request, but needed Town Attorney Scott Andrews to review the proposed ordinance and other details. Andrews said he believed the business already lies inside a economic revitalization area, a requirement before tax abatements can be issued. 

The Town Council meets at 5:30 p.m. today at Town Hall.