A Franklin tool and die company is requesting a tax break to expand its facilities and add 10 jobs.
Overton Industries has requested a 10-year, $210,000 tax break from on a $1.6 million investment to its Franklin facility, located at 2155 McClain Drive. The company plans to spend $911,000 on a 12,000-square-foot expansion and $726,000 on equipment, according to documents filed with the city.
The project will add 10 jobs with an average pay of $23 per hour over the next three years, not including benefits.
The tax break would be incremental, with Overton Industries not paying any additional taxes in the first year and then gradually paying more taxes until the 10-year period is over.
For a small company to make this large of an investment, the reduction in taxes in the first few years of the project is essential, Overton Industries CEO Steve Overton said.
“It makes it a lot easier to start a process when you aren’t going to have the taxes right off the bat,” he said. “It is pretty expensive for a small company.”
Overton Industries’ Franklin property, which houses the company’s Tube Forming Systems division, has 20,000 square feet of space now. The expansion will create additional space for machining work, Overton said.
The extra space and equipment are necessary to keep up with increasing sales and allow the business to become globally competitive, according to the application for the tax break.
The Franklin economic development commission recommended giving a 10-year tax break for the expansion and a five-year tax break on the equipment. The Franklin City Council would need to approve the tax break.
