Gregg County okays tax abatement for Trinity Industries
By BRENDA ALLUMS news1@kilgorenewsherald.com

Gregg County joined the city of Longview in granting the execution of a tax abatement for the Trinity Corporation.

Earlier in the year, county commissioners approved a sixyear tax abatement that will assist in the company’s $8 million expansion and create 300 new jobs. Today’s action was a formality that showed both the city of Longview and county agreed on the abatements.

The company will start construction on the project by Dec. 1, completing it by April 1, 2006.

“We are glad the company chose to expand here and we plan to work closely with them to make sure we do everything we can to help the company continue to grow,” said County Judge Bill Stoudt.

The company plans to spend another $5 million in capital improvements -$3 million in new equipment and $2 million on expansion projects.

“The abatement will help insure Trinity Tank Car, Inc., will remain competitive with employee wages as well as maintaining a competitive market with other tank car manufacturers,” a company spokesman said. “This will help put more jobs in the Longview area where

payroll will be spent at local businesses.”

About 200 new jobs, generating

$1.8 million in payroll, will result from the expansion.

With the added expansion there will be more work bid out to local businesses for work to be done for local plants such as welding and machining,” the spokesman said.

According to the abatement plan, the company will be granted 100 percent the first three years, 75 percent the fourth year, 50 percent the fifth year and 25 percent the sixth year. The company will start paying 100 percent the seventh year.

The contract estimates that a minimum $4.9 million capital investment must be made and completed before April 1, 2006, and that “on or before April 1, 2006, the company shall have at least 1,164 positions at the company’s facilities in Gregg and Harrison counties.” In other business, commissioners approved a project change to Hart Interactive, the company furnishing electronic voting machines to the county as a part of the county’s plan to comply with the Help America Vote Act.

The change reduces the number of eSlate machines from 160 to 150, added 7 new eScan machines and provides for 22 first year licenses and support.

The change cost the county an additional $6,255. The original price for the equipment was $621,963. Now the cost is $628,188.

Stoudt said the majority of funding for this project, a mandate from the federal government, mainly comes from grant monies.