Franklin EDC recommends ERA designation and 7-year/5-year abatement for Air Atomic after company seeks 10-year deal

Franklin City’s Economic Development Commission on an unspecified date voted to recommend that the city designate the Air Atomic expansion site as an Economic Revitalization Area and to recommend to city council a 7-year real-property and 5-year personal-property tax abatement for the company.

The recommendation came after a company presentation and staff briefing. Dana (staff member) told commissioners the property had originally been in an ERA that expired in 2012 and therefore the commission needed to make fresh ERA findings. Mike, representing Air Atomic and its parent company RBC, described planned growth at the Franklin facility: a 20,000-square-foot addition to the existing 30,000-square-foot plant and about 27 new jobs, with average wages the company described as running between $30 and $35 an hour.

Mike said the company serves the aerospace supply chain. “We’re a multinational company. ... we do rigid tube assemblies, tubes, ducts and manifolds for aircraft and aircraft engines,” he said. He also described the shop’s specialized welding work, adding, “it’s like taking and welding 2 pieces of paper together.” Ellen (staff member) explained the ERA process that must be completed before council consideration.

Staff recommended a 7-year real / 5-year personal abatement; the applicant requested a 10-year abatement and said it was not amenable to paying the EDC fee. Mike explained the company’s reluctance stemmed from corporate audit concerns raised by the parent company’s legal and tax teams, saying audits for a multinational, publicly traded firm shaped their position.

Commissioners moved first to find that the ERA findings for the relevant agenda paragraphs had been met and to recommend designation to council. They then moved to recommend a 7-year real / 5-year personal abatement with no EDC fee and approved both motions (commission recorded voice votes; the transcript records affirmative “ayes” and no recorded opposition). The commission’s recommendation now goes to the city council for final action.

Why this matters: Air Atomic’s expansion would increase Franklin’s industrial footprint and, according to the company, add several dozen employees at specialized, above-market wages. The ERA designation and abatement recommendation are preliminary local approvals; final tax-abatement authority rests with the city council.

Details and next steps: Staff noted the property’s prior ERA expired in 2012, requiring a fresh ERA designation before council action. The commission’s recommendation for a 7/5 abatement and the ERA finding were forwarded to council; the record shows the EDC toured the facility in advance of the meeting. The applicant indicated it will continue discussions with staff about next steps and timing.