Maben company seeks tax breaks

January 8, 2013 10:09:12 AM

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STARKVILLE -- A Maben furniture manufacturer is hoping the promise of 62 jobs will induce the county to provide some tax breaks. 

 

Bob Klimek of Main Street Forest Products said he hopes to be back in front of the Oktibbeha County Board of Supervisors at its Jan. 21 meeting with the legal documents required to request a tax abatement. 

 

"Our (legal) counsel still has to talk to the county attorney and they have to make sure everything is in there correctly," Klimek said.  

 

Klimek came to the board in August requesting a five-year tax abatement for MSFP, with the board having the option to renew after the abatement period ends. The request came after it was announced that MSFP would partner with Main Street Casual Living to produce upholstered furniture. At the time, Klimek said the merger could produce around 62 jobs for the two Maben-based companies.  

 

The board took Klimek's request under advisement, however, because Board Attorney Jack Brown was not at the meeting. 

 

On Monday, Klimek made the same request.  

 

When Klimek originally came before the board, MSFP had three employees. Since then, Klimek said those jobs have been retained and 11 new jobs were added, and that MSCL alone could add 45 jobs very soon.  

 

The companies finished their first shipment of chairs last week. 

 

"In the training phases we are limiting production to about 150 pieces per week," Klimek said. "By the end of the first quarter, we would like to be to about 1,000 to 1,200 pieces a week." 

 

After briefing the board on MSFP status, and hearing suggestions that the abatement period be reduced to three years, Klimek was told by Brown that a formal application would have to be filed.  

 

"Tax abatements are very complicated legally," Brown said. "A resolution must be drawn up and approved by the board, state tax commission and typically you need a lawyer to do that." 

 

Klimek took Brown's advice and agreed to have his attorney contact Brown later Monday afternoon. However, Klimek did not agree with the abatement period being reduced to three years.  

 

"We are still going to ask for the minimum of five years," Klimek said. "There were some misunderstandings this morning that I will have to clear up."