GLASGOW – An occupational tax abatement will help one Glasgow business offset the cost of an expansion that will create more than 100 jobs.

AtCorr Packaging Products LLC, which is in the former Dana Corp. building on West Main Street, asked the city for a rebate or retention of 1% of the city’s 1.75% tax rate on certain wages paid to employees in the city over a 10-year period on condition the business receives final approval of its application and meets all criteria through the Kentucky Business Investment Program.

AtCorr manufactures corrugated cardboard.

“The expansion is due to the new growth that we are experiencing in the corrugated lines that we currently do and new product lines that compliment our current business,” said Chris Roderick, the company’s general manager.

The Glasgow City Council approved an ordinance on first reading Monday granting the occupational tax abatement. The ordinance said the company would create 31-plus jobs.

“We were given the information on Monday to do this ordinance. We received a letter from the economic cabinet that was emailed to us from Maureen Carpenter (Barren County Economic Authority director) on Feb. 12. They went back and asked for a modification. They were asking for a KBI Program investment, a Kentucky Business Investment, on 31 extra jobs. They have since changed that from 31 jobs to 100 and the application has been accepted through the (Kentucky) Cabinet of Economic Development,” Mayor Harold Armstrong said at the council meeting.

When modifications were made to the company’s KBI application, the investment increased from $780,950 to $1,585,000; eligible costs increased from $780,950 to $1,105,000; and the total negotiated tax increase amount to be generated went from $250,000 to $900,000, according to a letter from the Kentucky Cabinet for Economic Development to AtCorr officials notifying them of the preliminary approval of its project under KBI.

As a result of the modification, the council also approved an amendment to the ordinance changing the number of jobs that will be created with the expansion.

The council voted in 2020 to increase the city’s occupational tax from 1.50 to 1.75% but to delay the effective date until July 1.

Carpenter said such incentives programs like the occupational tax abatement for AtCorr help offset the cost of expansion projects.

“It is also an enticement for them to do their project in your community vs. taking the project somewhere else,” she said.

During discussion about an ordinance calling for amending the city’s budget, the mayor was asked how many businesses impacted by COVID-19 the city was able to help through a grant program that was funded in part by the federal Coronavirus Aid, Relief and Economic Security Act.

In December 2020, small businesses owners impacted by COVID-19 were given the opportunity to apply for up to $12,000 in grant funding after the city received $326,000 in additional CARES Act funding.

“We were able to service every application that was submitted to us in the right format and at the right time frame. Everybody got something,” Armstrong said, adding that about 70 small businesses received grant funding even though they may not have gotten exactly what they had requested.

“I felt like we did a good service. … It ended up we branched out every penny that we got plus about $17,000 of the city’s money in order to give everybody something in that need group.”

Armstrong also updated the council about a bond issue that will help fund improvements to the South Cooper Industrial Park on New Bowling Green Road.

“The county has had a first reading of an (ordinance) for $5 million to go toward the infrastructure out at the new South Cooper Industrial Park. We’ve been trying to put some numbers together to see how we can share in that or work with it,” he said.

The mayor said the city is waiting to receive information from a bond attorney through Carpenter.

“We are going to try to see if we can suggest that we do $3 million in bonds to put a spec building up out on South Cooper. We don’t have that information as far as the interest rate, but we will have that information by the next meeting. I just wanted to put you on alert,” Armstrong said.

In other business, the council voted to approve an ordinance on first reading establishing an ethical code of conduct for officers and employees of the city and city agencies; adopted a resolution authorizing the application of a grant through the Kentucky Transportation Cabinet’s Office of Highway Safety to fund a child safety seat program, travel and training for the Glasgow Police Department; adopted a resolution authorizing application of a grant through KYTC’s Office of Highway Safety to fund overtime, LifeSavers Conference and fuel for the GPD; approved an ordinance on second reading changing the number of council members serving on subcommittees from five to four; approved an ordinance on second reading making Pin Seeker Way a city street; and approved an ordinance on second reading rezoning property located at 101 Hilltopper Way and 647 Roseville Road containing 15.213 acres from low-density residential and highway service business district to light industrial.