Great Falls Commission approves phased tax benefit for Janicki Industries, 4-0

The Great Falls City Commission voted 4-0 on May 12 to adopt Resolution 10623, approving a phased New or Expanding Industry Tax Benefit for Janicki Industries if the company proceeds with construction at 1900 18th Avenue North in the AgriTech/East Industrial Park.

Planning and Community Development Director Brock Cherry told the commission that Montana law (Sections 15-24-1401 and 15-24-1402, MCA) allows temporary reductions in taxable value for qualifying new industrial improvements. He warned the term "abatement" can be misleading and clarified that qualifying improvements would be taxed at reduced taxable value for a limited period (50% taxable value for the first five years after construction commencement, stepping up to 100% by year ten) rather than representing a cash payment or conveyance of land.

Janicki Industries’ representative Nickolas Lavacca described the company’s manufacturing capabilities and said the proposed campus could total about 1.5 million square feet with an estimated $830 million in investment and the potential to create more than 1,000 jobs if Great Falls is selected. Lavacca said Janicki would bring an initial contingent of experienced staff to mentor new hires and emphasized the company’s emphasis on workforce development and local partnerships.

The resolution, staff explained, is phased into four approved stages with certificate-of-occupancy deadlines for Phase One: May 31, 2029; Phase Two: May 31, 2031; Phase Three: May 31, 2033; and Phase Four: May 31, 2035. Those deadlines are tied to the City’s performance approval for each phase; the statutory tax-benefit clock under state law begins at commencement of construction for each approved phase. Director Cherry said the resolution includes mechanisms for communication and requires Janicki to return to the Commission to request any amendments for significant material changes or delays.

Public comment at the hearing was extensive and split. Supporters — including the Great Falls Development Alliance, the Great Falls Area Chamber of Commerce, local developers and utilities — said the site is shovel-ready, that the property currently carries agricultural valuation so new development would expand the taxable base, and that the project could spur long-term economic activity and workforce opportunities. "This is a significant opportunity" and "the abatement is a short-term tool to attract long-term investment" were themes of multiple speakers representing local businesses and civic groups.

Opponents and skeptics, including City resident and state senate candidate Valynda Holland and Talon Harrington, urged caution. Holland questioned the fairness of granting tax reductions to a large out-of-state company while residents and small businesses pay full taxes, and Harrington asked that any incentive include enforceable local-hiring and accountability conditions to ensure measurable benefits to Great Falls residents.

Commissioners discussed competitiveness and workforce issues during a post-hearing exchange. Lavacca said Great Falls’ community culture, early engagement and partnerships were decisive factors and that Janicki typically brings 15–20% of initial staff from existing operations to mentor locally hired employees. Commissioners noted alignment with the city’s Growth Policy goals, the need for workforce development, and readiness of city staff to facilitate development.

Commissioner Joe McKenney moved to adopt Resolution 10623; Commissioner Rick Tryon seconded. Mayor Cory Reeves, Commissioners McKenney, Tryon and Casey Schreiner voted in favor; Commissioner Shannon Wilson was excused. The motion carried 4-0.

The resolution authorizes a project- and applicant-specific tax benefit rather than a blanket incentive, ties each phase to deliverables and deadlines, and leaves the capture of new value within the TIF district to existing district rules. City staff recommended the action and noted that normal permits, inspections and certificates of occupancy will be required as project-level approvals proceed.

Next steps: with the Commission’s adoption of Resolution 10623, Janicki may proceed with planning and, if it begins construction on an approved phase, the statutory tax benefit for that phase would begin at construction commencement. Any requested changes to approved phases or timelines would require a return to the Commission for amendment of the resolution.