NEW HAVEN – New Haven City Council members agreed Tuesday to take the initial step toward offering an incentive for a local machining company looking to invest $1.3 million in new equipment and real estate improvements.
The council designated property at 5225 New Haven Ave. as an economic revitalization area – a preliminary step for tax abatement.
Hercules Machinery Corp. bought the property to expand its current operation, which is next door, said Justin Reed, the companys vice president.
The company will nearly double its space to 60,000 square feet and increase its site from six to 15 acres, Reed said.
The company makes, sells and leases construction equipment such as diesel pile-driving hammers and foundation-related machinery.
Hercules Corp. employs 30, and the expansion will add nine full-time jobs by mid-2015 including positions in welding, computer-controlled machine operating, assembly, sales and accounting.
Salaries would range from an average of $25,000 to $75,000, depending on the position, according to the abatement application.
Nikki Liter, the countys economic development specialist, estimated that Hercules could save $71,500 in taxes over seven years. This would allow us to stay and expand in New Haven for quite some time, Reed said of the tax incentive.
New equipment would include a mill, lathe and a high-definition plasma table for the fabrication and welding department, Reed said.
Councilman Terry Werling, R-at large, was excited about the expansion. Its great to encourage someone to stay in New Haven and grow their companys jobs by 30 percent, Werling said, but the icing on the cake is that these are good jobs with good benefits, and thats great for the employees.
Council members will vote on the abatements at the next meeting.