KENDALLVILLE — An Ohio Street industry that works in aluminum casting and machining is seeking a five-year tax break on plans to add about $610,000 in new equipment to its plant.
Mahoney Foundries, 209 W. Ohio St., is seeking to add a new Hunter HLM-20 Matchplate Molding Machine at a cost of $610,620.
Mahoney Foundries, which has two locations on Ohio Street for both aluminum casting and machining, supplies raw, fully machined, aluminum and brass castings for many applications. The company started in Kendallville and also has a third facility located in Vermont.
According to the tax abatement request filed with the city, the new machine will help boost production and would add two jobs, with average annual wage of $40,000.
The company currently employs 130 people with an average wage of about $43,200.
“The new manufacturing equipment will allow for increased production capacity,” the request states.
The company is seeking a five-year tax break, which meets the city’s guidelines for the size of the investment.
If approved for a five-year abatement, the company would save $20,810 over the term, while Mahoney would pay $35,739 in taxes.
The request will go before the Kendallville Economic Development Advisory Committee for review, which may meet in special session the final week of June instead of its regularly-scheduled meeting on July 5. That board would make a recommendation on the request.
The Kendallville City Council then has final say on the terms of the abatement and a decision whether to approve or reject it.