Ordinance takes 3M project one step closer to reality
January 25, 2007
DeKALB | The 3M corporation, most known for its Post-it notes, is one step closer to setting up another post in DeKalb.
At Monday’s DeKalb City Council meeting, the first of two ordinances that would allow a tax abatement for 3M was passed. The city council passed the construction proposal for a new plant in DeKalb. The council may also give 3M a $1.3 million tax abatement.
The ordinance passed Monday allows for construction of the site. DeKalb city manager Mark Biernacki said 3M will be building a large distribution center in the Park 88 business park near Fairview Drive and Peace Road.
The second ordinance, a $1.3 million tax abatement over the next five years, will be discussed at the next city council meeting. A tax abatement is when the city government returns a portion of the money originally taken from property taxes and gives it back to the company.
“It’s an incentive [for 3M] to build a 400,000-square-foot building in DeKalb and not elsewhere,” Biernacki said. “This will create lots of jobs.”
DeKalb City Clerk Donna Johnson said this would also set a good precedent for bringing business to DeKalb in the future.
“[Tax abatements] are good ways to bring companies to DeKalb,” Johnson said.
Johnson said the city’s primary source of income comes from property taxes. The construction of the new distribution center will help generate revenue.
DeKalb’s council still has to approve the second ordinance before any type of action takes place.
“Right now, we’re talking to the developer,” Biernacki said.
The next city council meeting will be Feb. 12.