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City Council to consider POET tax abatement; funding for downtown project

 

At 8 a.m. on Monday, the Shelbyville Common Council is expected to vote on a property tax abatement for a South Dakota biofuels company.

 

POET Biorefining Shelbyville LLC plans to build a refinery to make ethanol, a gasoline additive, at a facility now under construction on County Road 300 North, just west of Tom Hession Drive.

 

The city has annexed the area.

 

POET has asked the city for 10-year tax abatements on more than $110 million in both real property and the plant's equipment.

 

Under the terms, 100 percent of the taxes on the $5.2 million real estate investment is to be abated for 5 years, with 80 percent of taxes abated for the remaining 5 years.

 

For the equipment, taxed as personal property, 100 percent of taxes on the $105.4 million investment is to be abated for the entire 10-year period.

 

The agreement has a clawback provision if POET fails to meet the terms which include 45 new jobs paying some $2 million annually in combined salaries.

 

Another item on the City Council's agenda Monday is funding for Mayor Tom DeBaun's proposed downtown revitalization project.

 

The plan includes infrastructure and a parking garage to support executive housing developments, plus a complete makeover of the Public Square.

 

DeBaun is expected to ask the council for approval to spend money already budgeted to seek bids in order to get firm cost estimates for the project, now due to run some $22.4 million.

 

The City Council is scheduled to meet at 8 a.m. Monday in City Hall, 44 W. Washington St.

 

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