A PILOT (payment in lieu of taxes) tax break for Steam Logistics that will save it $502,000 in property taxes over a nine-year period was approved on Monday morning by the city Industrial Development Board.
There were six members present on the nine-member board and chairman Jimmy Rodgers recused himself because he is friends with two company owners. The remaining five board members voted in favor.
The logistics firm is remodeling the former John Ross Building at Fourth and Market in an $11 million project.
The long-vacant property currently pays $29,353 in city taxes per year and, with payments of the school tax on the improvements, it will be around $45,000 the first year of the PILOT. The property taxes will be around $90,000 per year at the end of the PILOT.
Jermaine Freeman, city economic development administrator, said Steam had opportunities to expand to other cities where it has offices so the incentive was necessary. Read more here