Hattiesburg City Council members recently received information regarding tax abatements for 12 manufacturers in the city, many which are located in the Hattiesburg-Forrest County Industrial Park.
Josh Sullivan, co-founder of Local Impact Analytics, gave a presentation on the abatements – which are tax reductions given in exchange for a company’s investment in economic development and job growth – at the council’s last work session.
“For the past (several) years, the city has asked us to do a review of the economic impact of the manufacturers that request property tax abatements from the city,” Sullivan said. “Funneling into this analysis that we have is the analysis of the value of the current abatement that has been requested, compared and contrasted to their current levels of employment, as well as the overall impact that has on the community.”
Information on the companies receiving tax abatements are as follows:
- Resinall, 102 Dixie Pine Drive: The estimated annual value of existing exemptions is $72,447, while the estimated annual value of the proposed exemption is $53,320.49 and the estimated total value of exemptions is $125,767. The plant lost a total of 11 employees, bringing the number of total impacted jobs to 220 and 100 total direct jobs.Total value added is $23.66 million.
- Mar-Jac, 1301 James Street: The estimated annual value of existing exemption is $108,133., while the estimated annual value of tax exemptions is $45,309 and the estimated total value of tax exemptions is $153,443. The company added 170 jobs and has 2,885 total jobs, bringing the number of total impacted jobs to 2,885 and the number of total direct jobs to 1,170 jobs. Total value added is $182.86 million.
- Mississippi Tank, 3000 West 7th Street: The estimated annual value of existing exemptions is $53,802 , while the estimated annual value of proposed exemption is $3,744 and the estimated total value of exemptions is $57,547. The company added nine jobs, bringing the total number of impacted jobs to 264 and total direct jobs to 161. Total value added is $23.31 million.
- Stokes Distributing, 12 Stokes Drive: The estimated annual value of existing exemptions is $3,908, while the estimated annual value of proposed exemption is 4,407 and the estimated total value of exemptions is $8,316. The company stands at 82 jobs, 163 total impacted jobs and 82 direct jobs. Total value added is $20.52 million.
- York International Corporation, 77 Academy Drive: The estimated annual value of existing exemptions is $19,481, while the estimated annual value of proposed exemption is $25,450 and the estimated total value of exemptions is $44,931. The company added for jobs, and offers 433 total impacted jobs and 240 total direct jobs. Total value added is $51.67 million.
- Western Container Corporation, 110 WL Runnels Industrial Drive: The estimated annual value of existing exemptions is $166,006, while the estimated annual value of proposed exemption is $49,146 and the estimated total value of exemptions is $215,152. The company lost 19 jobs and offers a total of 173 impacted jobs and 77 direct jobs. Total value added is $19.33 million.
- Sofidel America Corporation: The estimated annual value of existing exemptions is $296,992, while the estimated annual value of proposed exemption is $2,548 and the estimated total value of exemptions is $299,541. The company lost 22 jobs and features a total of 259 impacted jobs and 150 direct jobs. Total value added is $29.17 million.
- Kohler Company, 182 JM Tatum Industrial Drive: The estimated annual value of existing exemptions is $253,051, while the estimated annual value of proposed exemption is $348,699 and the estimated total value of exemptions is $601,751. The company added 272 jobs and features a total of 1,684 impacted jobs and 845 direct jobs. Total value added is $171.56 million.
- Georgia-Pacific Consumer Operations: 1 WL Runnels Industrial Drive: The estimated annual value of existing exemptions is $205,190, while the estimated annual value of proposed exemption is $12,309 and the estimated total value of exemptions is $217,500. The company lost 24 jobs, for a total of 195 impacted jobs and 113 direct jobs. Total value added is $21.97 million.
- Excel Injection Molding, 977 Sullivan Drive: The estimated annual value of existing exemptions is $6,877, while the estimated annual value of proposed exemption is $2,641 and the estimated total value of exemptions is $9,519. The company gained one job, for a total of 92 impacted jobs and 50 direct jobs. Total value added is $9.08 million.
- Zeon Chemical, 1301 West 7th Street: The estimated annual value of existing exemptions is $144,506, while the estimated value of proposed exemption is $3,722 and the estimated total value of exemptions is $148,228. The company lost one job, for a total of 88 impacted jobs and 43 direct jobs. Total value added is $10.99 million.
- Wis-Pac of Hattiesburg, 2 WL Runnels Industrial Drive: The estimated annual value of existing exemptions is $140,104, while the estimated annual value of proposed exemption is $7,844 and the estimated total value of exemptions is $147,989. The company added 33 jobs, for a total of 263 impacted jobs and 143 direct jobs. Total value added is $22.72 million.
“I think it’s fantastic,” Ward 2 Councilwoman Deborah Delgado told Sullivan. “Especially when you do it in such a concise and compact manner.”
Council members are expected to decide on the matter in the near future.
