Two tax breaks worth nearly $1 million were approved to facilitate a $7.8 million expansion of Aisin’s Franklin manufacturing facility.
The Franklin City Council this week unanimously approved the incentive package, including a 10-year real property tax abatement for Franklin Tech Park worth $935,000, and a five-year personal property tax abatement worth $26,700 for Aisin.
Aisin USA Manufacturing, 187 Bartram Parkway, was the first company to open in Franklin Tech Park, a Dennison Properties-owned 345-acre industrial park comprising multiple buildings east of Interstate 65, also including Interstate Warehousing and Energizer.
Aisin, which is based in Seymour, has manufactured car door components in Franklin since 2005.
To facilitate Aisin’s planned expansion, Dennison plans to more than double the square footage of the building to 299,000 from 146,000, said Mac McNaught, Dennison Properties president.
Aisin will expand its current operations and hire 20 new employees at a base pay of $15 per hour plus benefits, according to city documents.
The addition will likely be fully occupied by Aisin, but could also be subdivided for another business, depending on the company’s future growth, McNaught said.
A previously issued abatement on the property expired in 2017.
The city will collect about $1.1 million in real property taxes during the course of the 10-year abatement, and $17,300 in personal property taxes during the life of that abatement, according to tax estimates.
Aisin may bring more than 20 jobs. The number listed on the abatement documents was a conservative figure, McNaught said. The company has 49 employees in Franklin.
New jobs would start at less than the company’s average of $17.60 per hour, according to city documents. The wages are also lower than the city’s average hourly wage of $19.60.
Aisin and Franklin Tech Park will continue to pay taxes on the existing building and equipment at the current rate, as abatements only apply to new construction and new equipment.
