KC approves tax abatements

Kilgore College trustees last night agreed to tax abatements for two Kilgore industries.

In October 2005, the City of Kilgore approved a tax abatement for Southern Plastics Inc., doing business here as Alcoa Closure Systems International.

Kilgore College approved the same agreement for tax abatement on December 13 of that same year.

Last month the city assigned the agreement from Southern Plastics Inc. doing business as Alcoa Closure Systems International to Closure Systems International Inc. the assignment came after Alcoa sold the CSI division to an investment firm.

KC trustees approved that same tax abatement agreement last night.

Also, a proposed tax abatement for Cleveland Steel Container Corporation was brought before the KC board.

The term of the exemption will be for a period of six years, beginning on January 1, 2009.

This same agreement was approved by the city on March 19, 2007, but didn't get to the college board until last month.

The agreement will abate taxes on a minimum of $5,800,000 in real and personal property. Improvements are located at the Cleveland Steel facility under construction at 3007 Maverick Drive. Additionally, the company says at least 30 new full-time permanent jobs will be created by December 31, 2008.

The tax abatement schedule is as follows: The first year taxes on full value are $9,512, taxes abated $9,512, year two will be the same, year three will be the same, year four, taxes on full value will be $9,512, taxes abated $7,134 (75 percent), total taxes due $2,378, fifth year taxes on full value the same as every year, taxes abated $4,756 (50 percent), taxes due $4,756, sixth year, taxes on full value the same, taxes abated $2,378 (25 percent), taxes due $7,134 and on the seventh year no tax abatement.

Over this period, Cleveland Steel Container Corporation would have total taxes on full value of $66,584, abatements of $42,804 giving KC a total tax revenue of $23,780 during that abatement period.

In addition to the proposed abated property, the value of the base not included in the abatement is $250,960 which currently generates $411.57 in tax revenue annually.

In other business by the KC board, the Porter Business Administration Building needs heating and air conditioning renovations and bids for that job were received by the board of trustees.

Four bids were received for the project and all bids qualified. The bids were as follows: Infinity Contractors bid $929,800, Mosby Mechanical bid $742,300, REC Industries bid $1,097.000 and TDR Contractors bid $740,000.

Duane McNaney, vice president of administrative services for KC said in evaluating the bids, KC concentrated on the lowest two bidders. Mosby Mechanical has previously done work at KC with good results, but there was little information on TDR Contractors Inc.

McNaney said neither Mosby or TDR paid taxes to the college. References were checked and all came back positive. "We discussed the bidders with Wes Jordan, P.E. with Purtle and Associates, engineer consultant for the project. KC administration recommended TDR Contractors Inc.

This contract was voted on and awarded to TDR Contractors by the KC Board of Trustees.