The county council is moving forward with a $3.2 million tax-break package in a bid to get Boar’s Head to expand on their newest facility in New Castle. The original “shell building” is outlined in a thicker black line. Image provided by New Castle-Henry County EDC
Since breaking ground in 2014, Boar's Head Provisions has invested $113 million into Henry County and given more than 500 people jobs.
The company is looking to grow again. And the Henry County Council is on board.
The county council voted unanimously earlier this month to officially start an “incentive approval process” that would offer Boar’s Head a $3.2 million tax abatement plan if the food manufacturing company chooses Henry County for its new deli processing facility.
The county council is moving forward with a $3.2 million tax-break package in a bid to get Boar’s Head to expand on their newest facility in New Castle. The original “shell building” is outlined in a thicker black line.
Boar’s Head opened its first Henry County meat processing plant in April 2016. Within months, the company announced plans to build a distribution center alongside the first plant.
In the summer of 2019, Boar’s Head started negotiations with the New Castle-Henry County Economic Development Corp. (EDC) to buy the “shell building” at the corner of CR 400 South and Brooks Drive.
The new “Boar’s Head North Campus” facility makes the company’s brand of hummus.
EDC President and CEO Corey Murphy brought a request to the Henry County Council during its Dec. 17 meeting to encourage Boar’s Head to continue developing their north campus.
Murphy referred to it as a “Business Retention and Expansion” project.
The project would be $15 million in building and real estate and another $15 million in equipment, for a total additional investment of $30 million to the Boar’s Head North Campus.
The new equipment would contribute to Henry County’s overall assessed value and the building development would contribute to the Industrial Park Tax Increment Finance (TIF) district, Murphy said.
The new 36,000 square-feet project would be a deli processing facility unrelated to hummus production. Murphy said the expansion could create 70 new jobs by Dec. 31, 2023, with an average wage of $17 per hour, plus benefits.
Murphy said the project will also create temporary construction jobs, bringing business to local hotels and restaurants.
The new jobs would also increase local income tax revenue for the county.
“As you know,” Murphy told the council, “your budget over the years has been becoming more and more dependent on local income tax. And that’s the way the state legislature likes it.”
Murphy said this development would continue the community’s positive momentum.
“Negative impacts? I don’t know of any,” he said. “I don’t know of any negative impacts of this project.”
The incentive package
Murphy told the Henry County Council this is a competitive project. Other communities are fighting for the Boar’s Head investment and jobs.
He worked with the council’s Tax Abatement Committee, consisting of council members Chad Malicoat and Peg Stefandel, to create a 9-year variable abatement offer that will save Boar’s Head $3,205,562 or approximately 10.6 percent of the overall project.
“Honestly, even if we didn’t know the company, we feel like this is a good project. But the company behind it makes it even a little better project,” Malicoat said. “Boar’s Head has been a great community partner for Henry County.”
Malicoat said Boar’s Head not only met its requirements on previous abatements but “far and exceeded their numbers of employees and held up with their wage offerings.”
“They certainly are a trusted partner to Henry County,” he added.
Stefandel agreed with Malicoat.
“I am totally behind this project,” she said. “Proud to do it.”
The new incentive package gives Boar’s Head 100 percent abatement on the new project for two years, then 75 percent abatement for three years, 50 percent for three years and 25 percent abatement in the final year.
Under that plan, Henry County will begin receiving property tax payments by Year 3.
Henry County has traditionally offered 10-year graduated tax abatements that add an additional 10 percent each year. Murphy said the new variable abatement is more attractive to investors.
“This one provides more flexibility and, quite frankly, it’s more competitive,” Murphy said.
The council voted 7-0 on Dec. 17 to allow Murphy to work with the council’s attorney, Joel Harvey, to begin the formal process.
The proposed timeline will include a public hearing Jan. 28 for the county council to hear the formal tax abatement request and take vote at that time. If it is approved, the request then goes to the Henry County Commissioners. The commissioners would vote on the request Feb. 10.
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