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Morocco Council approve personal property tax abatement for U.S. Rubber

15 Apr 2019

To make way for the creation of 20 jobs and open up the possibility of several spinoff businesses coming to town, the Morocco Town Council passed a resolution declaring a Designation of an Economic Revitalization Area for the property now owned by The U.S. Rubber Company located at 508 S. Polk St.

The designation calls for a 10-year personal property tax abatement on $1 million of the $2.5 million of new equipment the company is bringing over to the Morocco facility from Ukraine. Once production starts, the U.S. Rubber facility will process waste tractor trailer tires into crumb rubber.

According to the memorandum of understanding/agreement, U.S. Rubber will receive a 100 percent tax abatement on the $1 million personal property tax the first year, a 90 percent abatement the following year and a 10 percent decrease in the abatement each year for the length of the agreement.

The town council can review the standing of the agreement each year.

To receive the abatement, the town council is asking that U.S. Rubber create no less than 20 new full-time jobs, paying no less than $12 an hour over the following timeline:

  • Twelve jobs by the end of the first year of the abatement period.
  • Three additional jobs, for a total of 15 jobs by the end of the second year abatement period.
  • Five additional jobs, for a total of 20 jobs by the end of the third year abatement period.
  • No less than 20 jobs during the remainder of the abatement period.

At a public hearing April 8, some concerns about the abatement and the new facility were heard. Some of the concerns brought up included possible affect on assessed valuation, noise, and a potential fire hazard being the biggest.

'We have to be cautiously optimistic about the business while also doing our due diligence,' said Council member Duke Gagnon. 'All of these were our initial concerns too, but based on what we looked into, those risks or minimal compared to the potential growth. We are trying to do the best for the town and help create jobs for our local residents. They (U.S. Rubber) have been very eager and open to work with us. This is a huge opportunity for the town.'

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