By ANNIE GOELLER, Daily Journal of Johnson County staff writer
One of Franklin's largest manufacturing companies wants to double the size of its plant and hire another 50 workers.
KYB Manufacturing hopes to add another 260,000 square feet to its 220,000-square-feet building.
Officials from the company, located on U.S. 31, are not confirming the plans until the city approves 10-year tax breaks on both the expansion and new equipment they have requested, said Dave Billingsley, president of the company.
The expansion and added equipment would help the company retain 660 jobs and hire an additional 50 workers. Officials would hire new workers over three years, with four jobs the first year, 14 the second and 33 in the third year. The majority of the jobs are for operators, fabricators or laborers, according to plans submitted to the Franklin planning department.
Billingsley would not comment on why the expansion was needed and said he would give more details at the end of October, once the company goes before the city council. If the council does not approve the tax breaks, the future of the expansion would be questionable, he said.
"(The abatement) would be helpful to support the large cost of construction," Billingsley said.
If the abatements are approved, the company could begin construction this fall.
The company has requested two 10-year tax abatements for $8 million in equipment and the $16 million expansion of the building. The city council would give final approval on the requests.
The requests are in addition to a seven-year tax break approved in March for $17 million in new equipment.
If the new abatements are approved, the company will not pay property taxes on the additional equipment and expansion for the first year. The taxes would then gradually be added into the company's bill at about 10 percent a year.
Franklin Mayor Brenda Jones-Matthews has already written a letter of support for the request, but said she has not spoken with any city council members.
"Any time you get that kind of investment, the city definitely needs to support that," she said.
Officials will meet with the economic development committee in Franklin this week. Members of that group will bring recommendations to the council at the end of October, Billingsley said.
KYB currently employs about 660 workers with an average hourly rate of about $15.75 per hour. KYB was the first Japanese company to come to Franklin.
The expansion is planned for the east side of the building and will add another 252 parking spaces and six loading docks, according to plans on file with the city.