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Council recommends three-year PILOT offer for Century Mold, asks attorney to include clawback language
Summary
Shelbyville council instructed staff to recommend a three-year payment-in-lieu-of-taxes (PILOT) framework to the Industrial Development Board attorney for Century Mold—or machinery and equipment valued at $6 million, and asked that the city attorney include clawback provisions.
The Shelbyville Mayor and City Council on March directed staff and the local Industrial Development Board ttorney to pursue a three-year PILOT offer for Century Mold's proposed $6 million machinery and equipment purchase and to include clawback language in any agreement.
Council discussion noted Century Mold already participates in four existing pilot agreements with the city and that the company currently employs about 87 people (as stated during the meeting). Council members and staff debated the appropriate length of PILOT terms, with some members preferring three years and others suggesting longer terms (five to seven years) tied to depreciation schedules and job protections.
Finance and tax staff described uncertainties that affect the calculation of tax savings, including the exact equipment categories, depreciation schedules and future tax rates; staff said figures presented were estimates. Council members asked for protections if the company laid off workers or closed during the PILOT period; staff and council referenced standard clawback provisions that would require repayment in such cases.
After discussion, the council voted to ask the IDB attorney to negotiate a three-year PILOT proposal and to include clawback language and reporting requirements. Council members also asked staff to develop a standardized matrix for future PILOT requests so the council could evaluate proposals consistently.
Why this matters: PILOTs reduce short-term tax bills to incentivize investment and retention of local businesses. The length and structure of a PILOT affect potential city revenue and the incentive a company receives, and clawback language protects the city if promised employment or investment does not materialize.
Next steps: Staff will provide a formal recommendation to the IDB attorney reflecting the council irection (three-year structure with clawback). The council also signaled intent to develop a standardized evaluation matrix for future PILOT requests.
Speakers cited in the record: City Manager Scott Collins; IDB/finance staff Kaye (last name not specified); Tax Assessor Lorna Clayton; council members (Bellhouse, Blevins, Ewing, Noel, Turnbull).
