In a unanimous vote, the Shelbyville Common Council has approved an agreement to provide incentives for Krone North America.
The company plans to move its U.S. corporate headquarters to Shelbyville from Tennessee.
As part of the deal, the city, the county and the Shelby County Development Corp. have entered into a memorandum of understanding with Krone which manufactures and sells farm equipment, including balers, disc mowers and other hay and forage products.
Krone intends to build its 200,000-square-foot headquarters operation on 40 acres of land on East State Road 44 just east of Interstate 74.
The site is part of a large tract of land commonly known as the Presbyterian property since it’s owned by the First Presbyterian Church.
Part of the resolution includes approval of an agreement among the city, the SCDC and the church.
Under that contract, the SCDC, which is funded in part by the city and the county, agreed to buy the 40-acre parcel Krone will occupy on the southside of SR 44 east of I-74.
The price was not disclosed in the agreement.
Also, the church agreed to give 10 acres of land to the city. That parcel is adjacent to the 40-acres purchased by the SCDC.
Plus, the church sold two small parcels totaling almost 3.1 acres to the SCDC, which agreed to give the parcels to the city to be used for streets and drainage.
“There will be additional expenditures,” said Shelbyville Mayor Tom DeBaun at the city council’s premeeting Monday night.
The agreement requires the city to design, build and maintain a water detention area on the 10-acre tract and above and below ground drainage waterways “at the city’s sole expense” to serve the 40-acre site.
And the agreement requires the city to put in a street to serve the 10-acre Krone site, and to put in space for utilities large enough to accommodate both the Krone site and the remaining 102 acres of ground owned by the church in case of future development of the site.
No cost estimates were included in the agreement, though the state has offered up to $500,000 to help pay for the infrastructure and up to $1.8 million in tax credits on the condition that Krone meets its hiring goals.
Also, no costs for the city’s obligations were included in Resolution No. 2016-6 passed unanimously by the city council Monday night.
Krone plans to create 101 new jobs and invest $12.5 million in its new headquarters operation. Hiring is due to begin in 2017.
Along with its headquarters, Krone plans to construct a distribution center, training facility and showroom for the company’s products.