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Lancaster County approves 20-year incentives for Atlas Copco plant; company pledges $51 million, 163 jobs
Summary
Lancaster County Council on unanimous vote approved the third reading of an ordinance authorizing a 20-year fee-in-lieu-of-tax (FILOT) and special source revenue credit agreement with Atlas Copco Compressors LLC, a subsidiary of the Atlas Copco Group.
Lancaster County Council on unanimous vote approved the third reading of an ordinance authorizing a 20-year fee-in-lieu-of-tax (FILOT) and special source revenue credit agreement with Atlas Copco Compressors LLC, a subsidiary of the Atlas Copco Group.
The county ordinance says Atlas Copco plans to invest $51,000,000 in the first phase of a Lancaster County distribution facility and to employ 163 people by the end of a five-year investment period beginning in 2025. Average wages were described in the county presentation as about $32 per hour overall, with “unskilled laborers” estimated at about $22 per hour. The company will offer medical, dental and vision benefits for full-time employees, plus short- and long-term disability options.
The agreement approved by council provides special source revenue credits equal to 50% of the negotiated credit for each of the first 10 years, followed by 25% for five years. The county’s economic development presentation says the deal includes performance measures that evaluate both capital investment and job creation; any excess performance in one area may be applied to offset underperformance in the other. If the contract minimums (a $41,000,000 minimum investment and a jobs commitment) are not met at the end of the five-year evaluation period, the special source revenue credit will be reduced retroactively.
“This agreement runs for 20 years,” the county presenter said during the meeting, describing the terms and performance review built into the contract. County staff told council the state Department of Commerce has supported the project and worked with the county during negotiations.
Council approved the ordinance following the required public hearing; no members of the public signed up to speak at the hearing. The economic development department recommended the measure and asked for an affirmative vote.
The ordinance requires future monitoring of Atlas Copco’s investment and employment performance against the contract benchmarks; the negotiated language spells out how credits would be recalculated if the company fails to meet minimum commitments.
The vote to adopt third reading was unanimous.
