PLEASANT VIEW -- Council members welcomed a new manufacturing company, JD Machine, to the city with a tax increment participation agreement.
City Administrator J.J. Allen said the city has been working on an incentive agreement with JD Machine since last summer when the company first started looking at coming to Pleasant View. Council members voted unanimously to approve the agreement.
Councilman Scott Boehme was absent.
Allen said the agreement provides an incentive to JD Machine. The company will create at least 75 jobs in the city and cause the property value to increase by at least $5 million.
"That won't happen until next year," said Allen, "The building is under construction."
He said once JD Machine meets the requirements of the agreement, the city's RDA will reimburse a portion of the property taxes paid by the company.
Allen said the amount JD Machine will be reimbursed depends on how many jobs they have created and how much the company is valued for both real and personal property.
Allen said the thresholds of the reimbursement are 40 percent, 50 percent and 60 percent of the paid property taxes.
"This gives JD Machine and the RDA something to plan for and gives them (JD Machine) an opportunity to do what they said they would do," said Allen.
JD Machine Chairman Matt Wardle said it has been a pleasure doing business with Pleasant View.
"This is really encouraging to a small business owner," said Wardle. "We kind of stuck our neck out in this economy. We are very favorably received by our customers. There are businesses willing to step out and bank on the future."
JD Machine's new facility is located at 2397 Rulon White Blvd.
The company will close its current facility in Weber Industrial Park once the new one is operational.
The company makes devices that are used on a wide variety of other machines.
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