Mitsubishi Turbocharger and Engine America’s 1200 North Mitsubishi Parkway facility.
Daily Journal File Photo
Franklin City Council unanimously approved a 3-year personal property tax abatement for Mitsubishi Turbocharger and Engine America, Inc.
During the abatement, MTEA will save approximately $67,623 in taxes, bringing their total net property tax amount to a projected $36,250. The first year will include a 100% tax abatement, year two will include a 66% abatement and year three will end with a 33% abatement.
The approval of this tax abatement results from MTEA extending one of its product lines, adding $2,509,020 of personal property equipment, and by adding an estimated 22 new jobs to the facility. The company currently employs 77.
Community Development Specialist Dana Monson said that the new equipment will help the company expand the work that they are currently exhibiting.
“MTEA came to the city of Franklin back in 2013,” said Monson. “They were originally located where Mitsubishi Heavy Industries was at 1200 North Mitsubishi Parkway. Mitsubishi Heavy Industries had some changes and they are no longer in that facility. MTEA, however, is continuing to grow and do some great things in that facility.”
MTEA opened up their first official facility in Franklin in 2015 while Mitsubishi Heavy Industries closed their portion of the facility back in 2021.
The 3-year tax abatement also with a commitment to pay the city a 5% economic development fee.
The company originally requested a 5-year tax abatement, but the Franklin Economic Development Commission forwarded the abatement to the city council with a recommendation for a three-year abatement instead. The commission was hesitant to give them a five-year abatement because of the company’s comparatively low starting wage.
MTEA will pay an average of $15.50 per hour for new employees while they are trained, which will then be boosted to an average of $19.88, a number below the county’s industrial average wage of $21.75. The company does offer a $2,000 signing bonus to new employees which they will accumulate over the first 12 months of employment, city documents show.
“We try to be consistent,” said Mayor Steve Barnett. “We take a look at what the investment and wages are going to be. They were very honest. Their starting wages were probably a little lower than we’d like to see, so the recommendation from the mayor’s office was a 3-year tax abatement. By no means does the time frame on the abatement reflect on the importance of Mitsubishi being here. It is important that they are here.”
MTEA previously received a 10-year personal property tax abatement in 2013 and MHICC received a real property abatement in 2013 for a building expansion to accommodate MTEA joining their facility.
Two years ago, Mitsubshi shut down a line because their contract for car air conditioning parts made at the facility expired, said Bob Francis, general manager of administration at Mitsbushi Heavy Industries Climate Control back in 2021. About 82 jobs were eliminated in the process.
Although the company has made adjustments in the past, MTEA still has a good reputation with the city, says Barnett. In 2017, the company passed the 1 million turbocharger engine milestone, a feat quickly surpassed in 2018 when they produced 2 million.
MTEA was awarded the General Motors Supplier of the Year award in 2018 and 2019. They were also the recipient of the Honda Excellence in Delivery and Quality award.
In addition to their corporate recognition, MTEA also helps fund Franklin Community School students to travel to Kuji, Japan, Franklin’s sister city, Barnett said.
“They are a reputable company that brings good employee opportunities to our residents,” he said. “That is the biggest economic impact that they have along with the taxes that they pay. They are a good company that we work with. They are just trying to utilize what makes the most sense for their company.”
