In exchange for local job creation, the Metro Council voted Tuesday night to give two Nashville companies tax abatements.
In separate votes, on third and final readings, the council unanimously approved special payment-in-lieu-of-tax, or PILOT, deals to Carlex Glass America and Standard Candy Co. Both deals, which involved Mayor Karl Dean’s Office of Economic and Community Development, were approved after no deliberation.
Carlex’s PILOT deal comes as the company, a subsidiary of a Japanese auto-glass maker, plans to make capital investments totaling $80 million over the next two years. Carlex, which formerly operated in Detroit, recently purchased the long-running Ford Auto Glass Plant in West Nashville to launch its headquarters there. (The company had earlier said it could invest up to $100 million.)
With the investments, the glass plant — located on Centennial Boulevard — has targeted the retention of 400 jobs and the addition of 50 more jobs.
The council’s vote Tuesday authorizes the Industrial Development Board to give Carlex a partial tax abatement for the next six years, according to Metro Council attorney Jon Cooper’s legal analysis. The abatement is estimated to total $2.19 million.
The council’s vote involving Standard Candy Co. — which produces the famous GooGoo Cluster — gives the company a 100 percent tax abatement for one year and a 50 percent tax abatement for another four years.
The abatement applies to both real property and the capital investment of personal property, machinery and equipment associated with expansion, according to Cooper’s analysis. Estimated tax savings for the company are to total $300,000.
The council’s vote comes after Standard Candy Co., which operates from Massman Drive in Nashville, engineered a 15,000-square-foot expansion in 2009, resulting in an additional 237 jobs in the Nashville area.
Approval of the financial incentives Tuesday followed news that New York-based IQT will no longer pursue relocating to Nashville. Metro had earlier provided $1.61 million in financial incentives to help lure the company here. With the relocation nixed, Metro is no longer on the hook to pay the incentives.
The call company had targeted Nashville as a relocation center, promising to add 900 local jobs. But amid massive layoffs at its Canadian centers, Dean’s administration has said it appears “unlikely” the company would move forward with its Nashville operation plans.