The Ferdinand Town Council on Tuesday approved an eight-year tax abatement of $3.1 million for Best Home Furnishings that will help the furniture manufacturer construct a new building at its headquarters in Ferdinand as well as add 20 new jobs.
Best Home chose to expand its Ferdinand facility over Jasper, Paoli and Cannelton because it wanted to keep the development and jobs within the community, CFO and Treasurer Steve Wahl said.
“Ferdinand is where we want to be,” Wahl told the council. “It’s where we were founded 53 years ago; it’s our home.”
The abatement includes tax breaks for $2.6 million in real property development which will include one new 100,000-square-foot building, and personal property additions of $425,000.
Wahl said that given the state of the local labor market, 20 new positions is all they felt comfortable committing to.
“Not only are we creating these 20 new jobs, but also it’s a way to continue with the other jobs we have here in Ferdinand,” Wahl said.
Tax abatement programs eliminate or reduce the amount of property tax a business pays on new development or improvements. The breakdown of Best Home’s abatement over the eight-year period will be 100 percent reduction for the first five years and 75, 50 and 25 percent in years six to eight.
The savings allow the company to continue expanding while saving money for the creation and preservation of new jobs.
Ferdinand Town Attorney Bill Shaneyfelt said that tax abatements given to Best Home were successful in the past, pointing out that the first tax abatement the town ever gave was to Best Home in 1991.
Best Home was founded in Ferdinand by Clem Lange and Ernie Pretchel Sr. They opened their doors in 1962 with just five employees and operated out of an old cannery building. Today Best Home operates in approximately 1 million-square-feet of technologically advanced facilities and employs more than 1,000 people, according to their website.
Councilwoman Debbie Johnson said that with the expansion of businesses like Best Home and Masterbrands, the Town of Ferdinand needs to focus on the development of new workforce housing in order to attract employees to the area.
“We are excited about having the expansion here, and we appreciate that they consider us a good place to do business,” Johnson said. “(Best Home) always gives back to the community. They sponsored the fireworks at the 175th as a gift to the town and it was spectacular, so home base businesses are the best for the community.”
The council also approved a four-year tax abatement for Webb Wheel Products of a total $3.3 million.
The abatement will go towards $325,000 in property improvements and $3 million of new equipment, including two new assembly lines in their plant located at 50 Scenic Industrial Dr.
According to Financial Controller Jenna Mitchell, no new jobs will be created because of the highly automated system necessary to assemble the heavy brake drums, hubs and rotors, but it will increase efficiency output for the company’s current employees.
© 2010 - 2024 Jasper Herald Company. All Rights Reserved.