State tax incentives OK'd for Corvette plant, sausage factory, others

ssloan@herald-leader.comApril 2, 2013 

CORVETTE PLANT

At the General Motors Corvette plant in Bowling Green, a limited edition Corvette Z06 took shape in 2008. GM got final OK Thursday for $7.5 million to upgrade its assembly plant and eventually add 250 jobs.

DAVID W. SMITH — Bowling Green Daily News

The Kentucky Economic Development Finance Authority board approved tax incentives Thursday for companies, including General Motors and F.B. Purnell Sausage, that are making or considering new investments in the state.

The approval of tax incentives outlines the state's commitment to a project should it occur in Kentucky.

In general, when a company accepts the tax incentive, it can keep that amount of money, which it would otherwise pay in taxes, assuming it fulfills the terms of the deal.

Here are selected board preliminary approvals, unless otherwise noted:

■ General Motors in Bowling Green, final approval of $7.5 million to upgrade its Corvette assembly plant. The company estimated that the expansion would cost $131.12 million. It was expected to add 250 jobs that pay an average hourly wage of $42, including benefits.

■ Akebono Brake in Glasgow, final approval of $4 million to expand its brake-manufacturing operation. The company estimated that the expansion would cost $20.6 million. Within two years, it is expected to add 224 jobs that pay an average hourly wage of $16, including benefits.

■ Wausau Paper Towel & Tissue in Harrodsburg, final approval of $6 million to expand its paper products plant. The company estimated that the expansion would cost $196.51 million. Within a year, it is expected to add 76 jobs that pay an average hourly wage of $25, including benefits.

■ Katayama America in Shelbyville, final approval of $440,000 to expand its plant, which produces door sash assemblies and trim moldings for vehicles. The company estimated that the expansion would cost $2.13 million. It was expected to add 22 jobs that pay an average hourly wage of $20, including benefits.

■ J&T Munitions in Winchester, $200,000 to expand its manufacturing of firearms parts and accessories. The company estimated that the expansion will cost $3.62 million. It is expected to add 15 jobs that pay an average hourly wage of $15, including benefits. The company also was approved for $50,000 in incentives under a different program.

■ CCI Industrial Services in Somerset, final approval of $300,000 to expand its customized fabrication operation. The company estimated that the expansion would cost $1.28 million. It was expected to add 10 jobs that pay an average hourly wage of $14.36, including benefits.

■ F.B. Purnell Sausage in Simpsonville, $30,000 to expand its sausage manufacturing business. The company estimated that the expansion will cost $1.4 million. The tax incentive program does not require job creation.

■ Angell-Demmel North America in Lebanon, $30,600 to expand its operations that produce aluminum trim for the automotive and appliance industries. The company estimated that the expansion will cost $1.3 million. The tax incentive program does not require job creation.

The KEDFA board also approved a payback plan for Lexington's Transposagen Biopharmaceuticals to repay part of what was intended to be a forgivable loan.

The company was approved for the $325,000 loan in December 2008. Under the terms of the deal, the company was to create 13 full-time jobs by the end of 2012 that paid an average annual salary of $57,200. Transposagen reported that it created nine jobs, and the salaries were lower than required.

The company is required to repay $39,523.26 for not fulfilling the terms of the deal. Transposagen requested that the repayment be made over the next 10 months, and the board approved the plan with an interest rate of 1 percent.

Scott Sloan: (859) 231-1447. Twitter: @HeraldLeaderBiz.

Lexington Herald-Leader is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

Commenting FAQs | Terms of Service