POLO – PNC Inc., which makes custom electromagnet solenoid coils and wiring harnesses for the automotive and hydraulic industries, is expanding and adding 25 to 30 jobs.
PNC officials are planning a $1 million, 100-by-100-foot expansion of their building at 201 E. Oregon St. The company, which was founded in 1981 and now employs 150 to 175 people, also has a building at 117 E. Mason St. downtown.
Monday, the city agreed to enter into a Tax Increment Financing District redevelopment agreement with PNC. It calls for 60 percent of the real estate taxes, an estimated $200,000, that will be generated from the expansion to go back to PNC for its redevelopment for the remainder of the life of the TIF district, which is 17 years.
The other 40 percent would remain with the city in the TIF fund.
After 17 years, the city will receive its full share of taxes.
Polo Economic Development Committee Chairman Mike Faivre said helping PNC with its expansion will help then city financially in the long run.
“You have a blank piece of property that’s not bringing in anything,” Faivre said. “You give up something up front, but that money comes back over the years.”
In addition, several local contractors will be working on PNC’s project, he said.
“I believe they’re the number one employer in Polo,” he said. “It’s good to help new businesses, but you also need to take care of the businesses you have.”
At the meeting, local businessman Richard Butler urged the council to approve the agreement, which passed 4-2.
Without the city’s assistance, PNC officials could decide to expand in another community, he said, adding that getting only 40 percent of the real estate tax increase “is better than 100 percent of nothing.”
He also pointed out that PNC helped the city fund its recent water project.