Draper asks council to reset abatement start date; public hearing set for August

A representative for Draper asked the Henry County Council to amend the start date of a previously approved 10-year real and personal property tax abatement so that the abatement’s 10-year schedule would begin in 2026 rather than 2024.

Alexis Souder, director with KSM Location Advisors, presented on Draper’s behalf and reviewed the 2022 approval for a 100,000-square-foot expansion at 411 South Pearl Street. She said the expansion increased Draper’s real property assessed value by an estimated $8 million, and the company planned roughly $2 million in machinery and equipment for a new paint line. Souder said construction and the building were completed on schedule and a certificate of occupancy was issued in November 2023, but supply-chain delays meant the personal property equipment was not placed in service until the first quarter of 2026.

Souder asked the council to "hit a reset button" so that the abatement’s start year would be the current tax year (the 2026 filing / 2027 payment year), and to amend the investment window for the personal property so machinery installed in early 2026 would qualify for the previously approved 10-year personal property abatement. She said Draper was not asking for a change in the abatement’s step-down schedule; the company requested only an adjusted start date due to circumstances beyond its control.

Council members said the tax abatement committee recommended bringing the item to the full council and that legal counsel (Joel) would prepare amendment language. The council reached consensus to schedule a public hearing in August with proper notice; a roll call indicated unanimous agreement. The council asked county counsel to coordinate notice and to work with Draper’s representatives to provide any additional materials for the hearing.

No final vote to amend the abatement was taken at the meeting; the matter will return after public notice and hearing.