DALTON, Ga. — The Dalton-Whitfield Joint Development Authority plans to negotiate tax breaks for a local carpet company that has expanded operations.
Brian An-derson, president and CEO of the Dalton-Whitfield Chamber of Commerce, said Beaulieu of America “added $21 million worth of equipment for a new extrusion operation here in Dalton, adding 50 new jobs for a new process.”
Extrusion is the process of making carpet fibers. Ralph Boe, CEO of Beaulieu of America, said the new process makes carpet fibers from polyester.
“The incentive would help offset some of the company’s expenditure on this expansion,” Mr. Boe said. “It also enables Beaulieu to help in the community with donations that we make to various civic organizations that basically support (the) people that live in the community.”
At a December meeting, members of the joint development authority passed an inducement resolution — an official intent to issue bonds for Beaulieu — so the company can qualify for property tax breaks.
“There’s nothing that is binding on either party at this point,” said authority Chairman Chuck Dobbins. “We just intend to do this, and we’ll work together to try to make it happen.”
Under state law, only public authorities can hold property that’s not taxed. The development authority technically would have to own Beaulieu’s new equipment so the company could get tax breaks, Mr. Dobbins said.
He said the authority would issue bonds and Beaulieu would be “the bond holder and the borrower.” Basically, the company would lease its equipment from the authority until the end of the tax incentive period.
Mr. Anderson said officials are not yet sure what level of tax breaks could be available to Beaulieu, but they hope to save the company $100,000 or more in property taxes.
Under a 2006 incentive policy, the property qualifies for abatement of city and county property taxes, he said. The policy doesn’t include city school taxes, but they’re hoping those taxes could be relieved as well.
Deana Farmer, director of community relations for Dalton Public Schools, said in an e-mail that the school board has not yet seen the request.
“In the past year, however, the Board has approved a similar request related to the incentives for a new company being recruited to the area,” she said.
The property tax breaks likely would follow a formula, such as giving the company a 100 percent tax break in the first year and gradually reducing the percentage over time until Beaulieu is paying all its property taxes.
Mr. Dobbins said the tax breaks are important because “we want our existing industry to expand and grow here.”
Mr. Boe said the expansion is at Beaulieu’s Fifth Avenue location. The new operation is under way with some new jobs already in place.