Caterpillar plans $60M expansion creating 700 jobs in Lebanon Business Park

The Lebanon City Council meeting on June 9, 2025, focused on a significant expansion project by Caterpillar at the Lebanon Business Park, which is expected to bring substantial economic benefits to the community. Caterpillar plans to expand its facility at 720 Edwards Drive by approximately 370,000 square feet, with a total investment of $60 million. This investment includes $25 million in real property and $35 million in personal property.

The expansion is projected to create around 550 new full-time jobs and 129 agency positions, resulting in over 700 new employment opportunities in Boone County. The economic impact of this project is notable, with an estimated $7.9 million in assessed value and a local income tax impact of $2.1 million. Additionally, the annual payroll is expected to exceed $31 million, which will significantly boost local businesses and services.

To support this expansion, the council is recommending a tax abatement structure. This includes a four-year real property tax abatement for Cabot Properties, structured to step down incrementally, saving the company approximately $761,250. There is also a proposed four-year business personal property tax abatement for Caterpillar at a steady 30% each year, which would save the company about $359,767. The projected return on investment for Lebanon is substantial, with every dollar of incentives expected to yield a $7.12 return.

Caterpillar representatives emphasized their commitment to community involvement and workforce development. They highlighted existing programs aimed at professional development, apprenticeships, and volunteerism, which align with their goal of attracting skilled workers to the area.

The council discussed the proposed incentives, acknowledging the importance of remaining competitive while also recognizing the significant investment Caterpillar is making in the community. The meeting concluded with a call for approval of the proposed expansion and tax incentives, marking a pivotal moment for economic growth in Lebanon.