Festool is again expanding its North American headquarters in the Lebanon Business Park.
Boone County Economic Development Corp. Executive Director Molly Whitehead introduced the expansion plan to the Lebanon City Council Monday, in a pitch for two abatements for the company.
Festool, a German tool manufacturer that has been in businesses for 90 years, built its North American headquarters in Lebanon in 2006 and completed a significant expansion in '15.
“They doubled their capacity in 2015 and they continue to see a great amount of growth and they are interested in continuing to grow in Lebanon,” Whitehead said.
The new expansion will involve a $8.9 real property investment and $440,000 personal property investment and add 8,000 square feet to the existing facility. The space includes corporate offices, logistics and manufacturing.
The investment will add up to 65 new jobs to the company’s workforce of about 100 employees based in Lebanon. The new employees will make an average of $25 per hour, plus benefits.
Whitehead said, based on conservative estimates, that the investment will annually add $450,000 to the property tax levy, $6,000 to the personal property tax levy and $140,000 in income tax levy, estimating that about 20 percent of new employees will be county residents.
In return for the company’s investment in the city, the council approved a six-year non-traditional real property abatement that is projected to save the company $390,000 over the life of the abatement.
The council also awarded a 10-year personal property abatement that is expected to save $12,000 over the lifetime of the abatement.