FERDINAND — MasterBrand Cabinets is one step closer to bringing in 135 jobs to its Ferdinand plant after the Ferdinand Town Council voted Thursday evening in favor of a proposed tax abatement.
The abatement will give MasterBrand a tax break on the $1.1 million worth of woodworking equipment the Jasper-based company plans to install in its Ferdinand facility at 624 W. Third St.
Although the town will initially miss out on property tax money, the benefit of adding skilled jobs outweighs the loss.
“It’s simply a matter of staying competitive,” council member Debbie Johnson said when discussing the agreement’s merits.
The tax abatement is a nine-year agreement giving MasterBrand 100 percent exemption over the deal’s first six years. By the seventh year, the town will begin to receive 25 percent of the property tax on the new equipment. The town’s tax windfall jumps to 50 percent in the eighth year of the deal and climbs to 75 percent in the ninth year. In Year 10, the agreement expires and MasterBrand will pay full taxes on the equipment.
“We’re thrilled to death to get 135 jobs,” Town Council President Ken Sicard said.
The estimated gross salary of the additional positions will exceed $3.6 million. The types of positions will vary throughout the pay scale, from skilled labor to entry-level positions. Of the 135 jobs, 109 will pay between $11.60 and $14.49 per hour, while several upper-level positions will pay $21.75 or more per hour.
“We’re already being contacted by other hotels and businesses looking to come here,” Sicard said. “Maybe those 135 new workers will have a place to stay.”
The council voted 2-0 in favor of the tax abatement. Council member Ron Weyer recused himself to avoid a personal business conflict, at the advice of attorney Bill Shaneyfelt. Weyer said his employer, Weyer Electric, has done work for MasterBrand in the past.
A public hearing on the abatement is set for 8 p.m. Feb. 11, at Town Hall, 2065 Main St., to discuss the proposal’s merits. The resolution is expected to be adopted that evening.
MasterBrand human resources director Lynn Wagner attended Thursday night’s meeting and said she’s pleased the process is moving forward.
“We already have a job fair set for this Saturday to fill those jobs,” Wagner said. The fair is scheduled for 8 to 11 a.m. Saturday at MasterBrand plant on Third Street in Ferdinand. “We’re ready to start filling jobs and get going.”
Wagner said the company is looking for applicants who have some manufacturing experience but is willing to train new employees.
“We’ve had a long history with Ferdinand and have a lot of ties to this area,” plant manager Scott Denhart said. “We appreciate the consideration.”
MasterBrand currently employs 1,401 workers at the Ferdinand facility.
Approval of the new expenditures is expected from MasterBrand within the next week, Denhart said.
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