City approves revenue bonds, tax abatement for local business
Golden Heritage Foods plans to expand
Staff reporter
Hillsboro City Council approved industrial revenue bonds and ad valorem tax abatement during a special meeting Monday for Golden Heritage Foods, LLC, of Hillsboro.
The bonds are not to exceed $2,000,000 are for the purpose of providing funds to purchase, acquire, construct, and equip manufacturing and warehousing improvement to existing an existing facility at 120 Santa Fe Street.
A 10-year, 100 percent tax exemption for the new equipment and addition also was granted. Financial adviser Jerry Rayl said the cost-benefit analysis was a "little weaker" that what is typical for a 10-year abatement. He explained the analysis ratio should be 1.3:1. This analysis was .6:1. The analysis measured the cost of the exemption compared with the benefit to the city for the improvements.
Rayl said based on the history of the business, there is "comfort" in issuing this incentive.
Mayor Delores Dalke explained that the warehouse space will not expand the number of jobs but will keep jobs in Hillsboro and allow the business to expand their product.
