Tecton Products seeks nearly $1.7 million property tax break for expansion
The company makes its pitch for the 10-year Payment in Lieu of taxes before the city's Tax Exempt Review Committee on March 23.
FARGO - Tecton Products is seeking a property tax break worth nearly $1.7 million for the construction of a 100,000-square-foot expansion of its manufacturing facilities, according to city documents.
The firm is seeking a Payment in Lieu of Taxes for the project, which will be located at its current plant at 4401 15th Ave. N. Operations in the expansion are planned to start in September 2022.
The request will be heard by the city’s Tax Exempt Review Committee at its 1 p.m. meeting Tuesday, March 23, in the City Commission chambers at City Hall.
The PILOT would last 10 years, with Tecton paying no taxes on the project the first five years. In years 6-10, the company’s tax bill for the project would rise from $48,785 to $235,501, documents show.
According to the PILOT application:
In total, Tecton would pay $741,095 in property taxes from 2022 to 2031, while receiving $1,676,002 in property tax exemptions.
Tection said it now employs 236 people and will add 16 people in the first year of the addition, most of them earning $15.01 to $20 per hour. The company estimates that by the fifth year of operation, its payroll will rise to 320 employees.
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The estimated value of the land is $3,288,000, with the completed addition worth $16 million. About $6.5 million in machinery and equipment will be purchased
Tection started in 1990 as a partnership with Marvin Windows and Doors, the company’s website said.
The firm opened its Fargo plant in 1992 and expanded it in 1997, documents show. The addition will be precast concrete and 50-60 people will be employed in its construction.
The company also has a manufacturing facility at Tecton Products-Roanoke in Salem, Va.
Tecton Products designs and manufactures custom fiberglass pultrued parts and is an original equipment manufacturer for several industries. Pultrusion is the process of pulling fiberglass through a resin and heated die to form a profile shape. The company then coats the products to withstand harsh environments. The firm says its products are ideal for window and door parts, fence posts or deck railings and other applications requiring durability, weatherability and performance.