Louis Dreyfus Co. is seeking tax abatements again from the county, this time for a project at its Claypool plant totaling $59 million.
Steve Snyder, attorney for Louis Dreyfus, presented the declaratory resolution to the Kosciusko County Council Thursday.
“They’re looking at another major project that is in the works. Some of it has already occurred with the acquisition of equipment, but none of it yet has hit the assessment rolls, so we’re here asking for a couple things: 1.) That you approve the abatement; and 2.) That you - at the final hearing in February, assuming that we get there - approve a waiver since they actually began acquisition of some of the personal property prior to the time they filed the SB (Statement of Benefits) 1,” he said.
The SB-1 was filed with the county auditor on Dec. 6 and filed with the county council technically Thursday.
“They’re planning real estate improvements of $27,109,000, taking place ’23 and ’24, finishing Dec. 31, 2024. As I indicated, some of that personal property has been acquired so we will be requesting a waiver,” Snyder said. “Personal property, they’re looking at installation upgrades and new equipment totaling $32,758,000 for a total project cost of $59,867,000.”
The type of improvements they’re looking at, from a real estate standpoint, include mill storage expansion. As the business has grown, Snyder said storage has become key.
From the personal property standpoint, he said the canola oil business has “boomed.” “It’s coming in and going out, but there also is additional infrastructure needed to process that and store that.”
Currently, Louis Dreyfus is making tax payments for personal property of about $550,000 a year to the county. The real estate tax paid for the last year was $181,748.
“So from that standpoint, your previous abatement approvals have yielded significant success as far as generating and retaining values. Some of those abatements have gone by the wayside, so the full tax value is being paid now, and they will keep falling off. I think there have been four of them before this request and those are expiring based on the various terms you approved, which weren’t all the same for all of those abatements,” Snyder said.
The new project will generate 13 new jobs with an annual payroll and benefits of $959,000. Louis Dreyfus has 148 employees at the Claypool facility, with 142 of those being Kosciusko County residents.
Snyder said the tax abatements Louis Dreyfus is seeking the council’s approval on are one for 10 years for real estate improvements and the other one for five years for personal property, “in light of the value of the total project at $59 million, with the additional $1 million in employee benefits that will be coming from the new job.”
With Louis Dreyfus’ planned expansion, Snyder said there is no expense to the county. Infrastructure is already in place, and the state highway has been improved sufficiently to handle the traffic that goes in and out of the Dreyfus facility, he said.
“Outside of the additional mill storage, there’s nothing that’s creating additional drainage and the drainage is contained on site, and to my knowledge there were a couple initial problems over the years that have been resolved. And there is no drainage problem now,” Snyder stated.
Fire and police protection is in place and remains the same, he said.
“They continue to add to the tax base, and will continue to add to the tax base. An abatement doesn’t change that tax base, it merely provides an exemption from a portion of the tax, being 100% in the first year, but that’s the only year it’s 100%. That tax payment then starts to increase every subsequent year during the abatement period,” Snyder explained.
The fact that Dreyfus is here has attracted other users of the facility, he said. “It’s not just Kosciusko County farmers who are providing Dreyfus with what it needs. It comes from all the surrounding area, and with the addition of the canola facility, it comes from Canada. So we’ve become a spot on the map from that standpoint, and this will just add to the reputation of that location.”
Council President Mike Long said the council was just looking at the declaratory resolution Thursday. He asked Snyder to give a brief description of what the next step would be if the council approved the declaratory resolution.
Snyder responded that if the resolution was approved Thursday, the next step would be to schedule a hearing on the request for a waiver and a hearing on the final approval - the confirmatory resolution. The confirmatory resolution also would show approval of the waiver.
Long opened the meeting up to the public to speak against or for the resolution, but no one spoke up.
After the public hearing was closed, Councilwoman Sue Ann Mitchell said the abatement committee met with Snyder and looked at everything he presented. The committee, she said, believes “it’s appropriate that we could move forward.”
She said when the council approves the declaratory resolution, they’re only saying they’re going to consider the 10-year real estate abatement and the five-year personal property abatement, but are not locked into the 10 and five years. The council can change the number of years at their February meeting.
Councilman Dave Wolkins commented that he’s never really been excited about tax abatements, other than the fact that they are used to get companies to come to a community. “But when I look at all the positives of having them here, and there’s very few county services they get. The only thing they get out of us really is the Claypool Fire Department runs out there a few times and it’s not really us. But I think it’s a good opportunity for us and we ought to do it,” he said.
Councilwoman Joni Truex made a motion to approve the declaratory resolution, Wolkins seconded it and it was approved. Councilwoman Kathleen Groninger abstained and Councilwoman Kimberly Cates was absent.