Council adjusts amounts for tax breaks

Agricultural businesses now have an updated guide to follow when applying for Jay County tax abatements.

Jay County Council decided Wednesday to increase thresholds in the county’s guidelines for agriculture-based tax abatements, setting investment costs for a three-year abatement between $5 million and $14.9 million and a five-year abatement at $15 million or more.

Relatedly, council approved requests from Minnich Eggs for five-year tax abatements related to upcoming additions to the business.

In the county’s previous guidelines, which date back to 2014, a three-year tax abatement could be granted for an investment between $1 million and $4,999,999 with the creation or retention of two full-time jobs, and a five-year tax abatement could be granted for an investment of $5 million or more with the creation or retention of four full-time jobs.

New guidelines suggest three-year abatements could be granted for investments of $5 million and $14,999,999, and five-year abatements could be granted for investments at $15 million or more, with the number of full-time jobs created or retained for each to stay the same.

Jay County Development Corporation executive director Ceann Bales explained the tax abatement advisory committee reviewed the guidelines and recommended increasing cost thresholds. 

Council member Faron Parr — he also serves on the advisory committee — pointed out it’s been more than a decade since the guidelines were put in place, and currency worth has changed significantly since then.

Bales noted the cost thresholds are merely guidelines for businesses applying for tax abatements, indicating council still has the final decision on proposed tax abatements.

Council president Matt Minnich voiced concern about the threshold increase.

“I just think it’s a pretty aggressive change in quantities,” said Minnich, who works in the agriculture industry.

Council member Bryan Alexander questioned if Minnich’s fears were that the increase would discourage businesses from pursuing tax abatements.

“I don’t want to lose a tool in a toolbox,” Minnich said. “I think we’d still be pretty excited if somebody came in wanting to do a $4 million investment in Jay County.”

Alexander noted JCDC is typically involved in the tax abatement process and, in such a case, could bring a recommendation to the advisory committee to consider.

Also Wednesday, council approved two tax abatements for Minnich Eggs related to upcoming additions to the business.

The rural Portland company is planning a biochar manufacturing and distribution facility and new feed mill in Noble Township.

The biochar manufacturing and distribution facility would involve converting layer and pullet manure into soil amendment products (biochar), while the feed mill would help to meet demands for sister company Minnich Poultry.

Minnich Eggs requested a five-year real property tax abatement and five-year personal property tax abatement, estimating $14.1 million and $15.93 million investments, respectively. (Minnich Eggs will save approximately $699,769 with the real property abatement and $339,427 with the personal property abatement.) The project will result in 10 additional jobs — plans are to have three shifts at the biochar facility — and help retain several employees.

According to tax abatement forms, the estimated start date for construction is Sept. 1, with completion set for Dec. 31, 2027.

Minnich Poultry and Reir Pullets, another sister company, have been approved previously for three other tax abatements. The business has been operating out of Jay County since the 1970s.

Council reviewed the requests in May before forwarding them to the county’s tax abatement advisory committee. Bales noted that the committee unanimously recommended approving both requests.

She also recalled council member Michael Brewster’s words of support for the abatements at council’s May 14 meeting, noting abatements can be used as an incentive for businesses to stay and grow locally. 

Council then approved the tax abatement requests.

In other business, council members Randy May, Harold Towell, Brewster, Alexander, Parr and Minnich, absent Cindy Bracy:

•Approved an ordinance re-certifying council districts in Jay County, with Towell dissenting.

•Heard the county’s long-time information technology worker Randy Cleaver of Cleaver Cabling & Consulting is retiring at the end of the year. Jay County cybersecurity committee has been reviewing other options, noted auditor Emily Franks, and it plans to present a recommendation to council and Jay County Commissioners at their July meetings. Cleaver, who has contracted with the county for the last 18 years, had been charging the county approximately $60,000 annually, at least $100,000 less than other information technology service providers county representatives have looked into recently.

•Made the following additional appropriations: $232,625.80 (Towell opposing) for an existing contract with Rundell, Ernstberger and Associates involving development of the county’s 68 acres on the west side of Portland; $50,000 for Jay County Development Corporation for the rest of its 2025 budget; $36,000 for Kleinpeter Consulting for work in the owner-occupied rehabilitation program; $14,000 for upgrading outdated hardware and software at Jay County Circuit Court; $13,350.81 for the drug-free communities grant from state funds; and $10,800 for Ritter Strategic Services’ work in planning and procuring quotes for upgrading the county’s public safety radio system.

•Approved annual tax abatement compliance forms.

•OK’d the 2025 budget calendar. Jay County’s budget review is slated for 5:30 p.m. Sept. 3, a public hearing and first reading of the budget is set for 6 p.m. Sept. 24 and a second reading and adoption of the budget will be at 6 p.m. Oct. 8.