A proposed project involving assembly of Polaris products would add to industrial development in Decatur-annexed Limestone County and result in 10 new jobs, according to officials and documents.
The city’s Industrial Development Board on Monday will consider tax abatement requests from River & Rocket LLC and Power 3PL Inc. for a facility on Bibb Garrett Road where Power 3PL would assemble and distribute products made by Polaris.
River & Rocket is considering building a facility of about 305,000 square feet to be leased by Power 3PL, according to a summary of River & Rocket’s application for certain tax abatements.
The estimated cost of the project is $17.5 million, the document states.
Power 3PL would assemble, customize and distribute products manufactured by Polaris, the document says.
“If it progresses, the project will be a good addition to our region to help support Polaris,” said Jeremy Nails, president and CEO of the Morgan County Economic Development Association.
“Since this is one of the first major developments along the Highway 20 corridor west of I-65, the project has been working closely with the City of Decatur on their plans to make this an attractive and versatile facility,” Nails said.
Nails said he would expect this project would help spur additional interest and development along the corridor “as the city plans and reacts to future inquiries.”
Matthew Hinshaw, an attorney who represents both companies, said Thursday he was waiting on authorization to comment on the project.
Polaris started production in 2016 on Greenbrier Road in Huntsville-annexed Limestone County. The company based in Medina, Minnesota, manufactures off-road vehicles.
According to a document submitted to the IDB, Power 3PL estimates that the project will create 10 new jobs with an annual average wage, without benefits, of $35,000. The company expects to transfer about 15 to 20 current employees from other north Alabama locations to the new facility, the document states.
Building developer River & Rocket said it wouldn't add jobs as a result of the project, but construction jobs would be created, according to an IDB document.
River & Rocket said in its summary for abatements that, if approved, construction could begin around July 1 and be completed by December 21, 2020.
River & Rocket is asking the IDB to consider abating about $80,500 a year in state, Limestone County and City of Decatur non-educational property taxes for a 10-year period. It’s also requesting the abatement of an estimated $330,000 in state sales taxes during the construction period and an estimated $247,500 in non-educational City of Decatur sales taxes during construction, according to the summary.
The document said the project is expected to create new state, Limestone County and City of Decatur property taxes of about $73,850 a year for the 10-year period for schools.
An estimated $165,000 in Limestone County sales taxes would be generated during construction that would benefit Limestone County schools, the document said, and an estimated $82,500 in City of Decatur sales taxes would be generated during construction to benefit Decatur schools.
The estimated investment in the project for Power 3PL, to equip the facility, would be $605,000, according to a summary of its abatement application.
Power 3PL is asking the IDB to abate about $1,815 a year in state, Limestone County and City of Decatur non-educational property taxes for 10 years, according to the summary, and abate an estimated $24,200 in state sales taxes during construction.
The company is also asking for the abatement of an estimated $18,150 in City of Decatur non-educational sales taxes during construction, the document said.
The project is expected to generate about $1,665 a year for 10 years in state, Limestone County and City of Decatur property taxes for schools, according to the document.
The estimated amount of Limestone County sales taxes generated during construction to benefit Limestone County schools is $12,100, according to the summary, and the estimated amount of City of Decatur sales taxes generated during construction for Decatur schools is $6,050.