The Troy City Schools Board of Education and a Troy City Council committee have agreed to support a tax abatement request for a proposed $69 million Conagra expansion.
The Conagra Brands plant at 801 Dye Mill Road in Troy produces about a billion Slim Jim meat sticks each year.
The company asked for a 100 percent tax abatement on new capital investments for 15 years, saying it needs it to locate the operation in Troy instead of at another company plant outside Ohio or working with an outside manufacturer.
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“Conagra is evaluating the costs and benefits of expanding its meat stick product production … To expand in Troy, it is necessary to reduce our costs as much as possible, including tax costs, due to the potential investment,” Dwayne Bolling, Conagra finance manager, says in the abatement application.
The project would include $27 million in new construction and $42 million in new machinery and equipment. It calls for 62,800 square feet of new space and would create 50 new jobs. The Troy operation now employs 681 people, according to the application.
The Troy board of education unanimously approved the abatement request on Monday.
Local plant produces a billion Slim Jims a year
School Treasurer Jeff Price said the district would collect less taxes on the additional structure but not the equipment.
“The addition they are looking at is $27 million, equipment is $42 million, which is no longer taxed. We will probably end up with about one half of what we would have,” in taxes, Price said.
“Congratulations to the city for apparently being successful in attracting this expansion. It is a competitive marketplace,” said board of education President Doug Trostle. “We will pick some up in the income tax.”
In a memo to city council, Patrick Titterington, city service and safety director, noted ConAgra in 2010 initiated its Slim Jim meat stick expansion and the company recently acquired another meat snack producer, Duke’s Smoked Shorty Sausages. The expansion under consideration would be to accommodate sales growth of that product, Titterington said.
Council’s law and ordinance committee also reviewed the abatement request Monday and agreed to recommend the full council approve it. The request is expected to be before council at its next meeting on Monday, Dec. 17.
The abatement also will be considered by the Upper Valley Career Center board and the Miami County commissioners.