Archbold, OH

New Tax Abatement For ConAgra

Archbold Village Council approved a tax abatement agreement for ConAgra Foods, the firm that planned to close its doors earlier this year.

Dennis Howell, Archbold village administrator, told council members at the Monday night, Sept. 17, meeting, the company needs the abatement agreement to get a discounted electric rate from Toledo Edison.

In an interview after the council meeting, Howell said TE has a program that offers a reduced electrical rate to companies that preserve or create jobs.

In addition to preserving or creating jobs, the TE rate reduction plan requires the company to partner with a third party in an economic development agreement.

The tax abatement agreement satisfies the requirement.

Howell said the benefit to the company is minimal. He did not have tax savings figures, or the number of jobs the agreement will create or preserve.

The agreement abates the property tax on $220,000 in real property improvements for five years.

“Normally,” Howell told council, “we would not look at something this small.”

He said the savings to the company in electric rates will far exceed any savings from the tax abatement.

No Help For Schools

Because the abatement agreement is so small, the village will not require ConAgra to make donations to the Archbold Area School District or the Four County Career Center.

Usually, companies receiving tax abatements are required to make donations to the schools, to compensate them for the loss of tax revenue.

Howell said the tax abatement and the reduced electricity rate will be used to demonstrate to ConAgra corporate officials that the local ConAgra plant should remain open.

Until November

ConAgra announced on Thursday, Sept. 14, 2006, that the Archbold plant, the former La Choy Food Products, would close in January 2007.

The closing date was set back when local ConAgra officials said the plant will remain in operation until at least November.

The electricity savings will only last until 2008, Howell said.

At that time, Howell said state regulators will allow electric companies to begin charging market rates for electricity, as part of the state’s electric deregulation program.

Leave a Reply

Your email address will not be published. Required fields are marked *