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Cherokee Machining describes $404,000 investment and hires; council shortens abatement to seven years
Summary
A Danville manufacturer said it plans to buy a $404,000 machine, add four jobs and pursue a personal-property tax abatement; council amended a confirmatory abatement from 10 years to 7 years and approved the resolution after a public-hearing requirement was noted.
Jerry Coffin, president of Cherokee Machining, told the council his company has new work with Allison Transmission and is seeking local support to expand operations in Danville. Coffin said the company plans to purchase a $404,000 machine, expects to hire four additional employees and aims to increase revenues over the coming years.
A staff representative and business owner Gary Clark described the investment and said the company would commit to reporting requirements in exchange for a personal-property tax abatement tied to equipment depreciation. Clark said the business would agree to 38 jobs in reporting language and outlined an annual reporting schedule so the town could verify commitments.
Council members discussed financing for the purchase, possible state readiness or other grants, and how the abatement would affect property-tax calculations. One councilor asked whether existing state grant(s) would change the abated amount; staff replied that abatements apply to taxes assessed on the property and would not change the underlying value of the equipment.
Because the confirmatory resolution required a public hearing for abatement confirmation, a councilor moved to amend the resolution to shorten the abatement from 10 years to 7 years prior to final action. The amendment was moved by a councilor and seconded; the council approved the amendment on a roll-call vote 5–0. The council then approved the confirmatory inventory resolution tied to the abatement.
Coffin said he would initially use cash and shareholder investment to acquire the equipment and planned to apply later for state readiness funding; he also said the machine’s build cycle could delay delivery until spring. The council asked staff to schedule the required public hearing and to ensure reporting and compliance terms are clear in the abatement agreement.
Next steps: staff to schedule public hearing(s) required by the abatement resolution, finalize the confirmatory resolution language and return with any grant-match details and reporting terms.
