JASPER — The economic development commission recommended a six-year tax abatement for a project of Kimball Hospitality at its meeting Monday.
The $4.4 million project, titled Kimball Hospitality 16th Street Realignment Project, will install state-of-the-art manufacturing equipment in Kimball Hospitality’s 16th Street plant, allowing the company to automate some of the labor performed by employees, such as moving product from station to station.
John Kaufman, vice president of global operations, said the project will facilitate more U.S. manufacturing for Kimball Hospitality. Much of the company’s manufacturing is now done at a plant in Asia.
The financial analysis in the abatement proposal showed the number of jobs at the plant decreasing from 220 to 210 after the project’s completion, assuming capacity at the plant remained the same. The proposal pointed out, however, that the remaining jobs would require higher skill levels and likely pay more than current jobs because of the new technology being implemented. The project also allows for growth at the plant, should the market demand it.
During discussion about the job decrease, Kaufman pointed out that the low unemployment in Dubois County —roughly 1.9 percent — makes it difficult for Kimball Hospitality to fill vacancies at the 16th Street Plant and keep employment at 220. That challenge, Kaufman said, has persisted for the last couple of years.
Despite the loss of jobs, the project qualified for a six-year abatement on the city’s tax abatement score card, and the economic development commission recommended the abatement to the Jasper Common Council with 100 percent tax abatement in years one through three, 75 percent in year four, 50 percent in year five and 25 percent in year six.