$35 million Donaldson expansion in the works in Frankfort

The two seven-year abatement resolutions OKed would cover real and personal property, mitigating the tax bill for both the proposed 160,000 square foot structure and for equipment purchased to fill it.

The proposed $35 million expansion project, which would be located on 22 acres Donaldson already owns west of its plant, is expected to yield more than 84 new jobs for Frankfort and Clinton County.

The jobs would be phased in over about two years and would pay an estimated $18.50 per hour plus benefits, said Economic Development Director Shan Sheridan.

The typical abatement is about 60 percent, and the city original proposed 65 percent, but Donaldson requested 70 percent and with the savings front-loaded, said Sheridan.

“It was a good move. It changed the dynamic. I’m thankful the council approved it,” he added. “The great thing, too, about an abatement on an expansion is that we don’t lose any taxes we’re already receiving.”

Sheridan noted, as did Frankfort Mayor Chris McBarnes at the council meeting, that the city will also receive Local Income Taxes from the additional employees and the spending from a construction project of that size.

“There’s the income tax, the economic impact, new jobs, the spending with the new construction. It’s all a win-win for everyone,” he said.

However, the entire deal is pending approval from the Indiana Department of Transportation to allow a second access cut into the Donaldson campus west of the existing drive on State Road 28. Sheridan said he spent about two hours Thursday with INDOT officials discussing the request.

“It’s a limited access highway, and they don’t always grant new accessibility on a whim. We have to make a good case.

“We should know by tomorrow or Monday,” he said. “Once they give us the green light, we can do the actual plans for the ingresses and egresses.”

If INDOT approves the additional cut on State Road 28, Donaldson will make a final decision whether to build in Frankfort or at another site.

Donaldson is a global company operating in 44 countries from the western U.S. to New Zealand. Among its facilities are 45 manufacturing plants, 23 distribution centers an four joint ventures. Donaldson also has more than 100 technical laboratories around the world.

As City Council member Wanda Mitchell noted, being a worldwide manufacturer, Donaldson could have located the plant nearly anywhere, so Frankfort’s being in the running is a huge opportunity for the municipality.

“Our biggest competition is Mexico ... if you’re looking at the labor rate there for employees and the labor rate of workers to build new building – for Frankfort to have an opportunity to get this is pretty amazing. I’m pretty thankful they’re giving us a shot,” said Sherican.

The new facility would manufacture two new specialized filtration product lines, Sheridan said. “It’s amazing to think that Jack Donaldson started the business in the early 1900s using peat moss as a filtration system, and here they are today.”

Sheridan also noted that the timing of the expansion could help absorb the employees losing their jobs due to West Pharmaceuticals’ announced shutdown. 

“The good thing is that West offered a nice severance package to their employees, so many will be able to live a few weeks and maybe months before going back in the employment market. By that time, the (Donaldson) plant construction would be started. The Donaldson HR folks are a smart group so I would think they would get those (West) folks plugged in and start shopping for new employees from that group who already have manufacturing experience.”