Metro Council to take up two ITEP requests

The Metro Council is scheduled to consider two Industrial Tax Exemption Program requests at its Wednesday meeting.

One request is from the Formosa Plastics Corporation for a $332 million expansion of its Baton Rouge PVC production plant. The expansion, according to its application, will add 15 new jobs to its existing 321-person workforce, as well as support 500 construction jobs. 

That expansion is expected to start in March 2020 and conclude by May 2022. If approved, Formosa will be eligible for a $38.3 million property tax exemption over 10 years. 

BRAC and LED began discussing potential expansion plans with Formosa in March, and the company considered Texas before committing to Baton Rouge. To secure the project, LED offered Formosa Plastics an incentive package that includes a performance-based grant of up to $500,000. 

Baton Rouge-based Fabricated Steel Products, on Flannery Road, is also asking the council to approve its exemption request. The company looks to add two buildings to its property that will house a system to cut, drill and fabricate steel parts. The $2.2 million expansion would bolster the company’s workforce with two new permanent positions and support 10 construction jobs. 

If approved, Fabricated Steel Products will be eligible for a $322,000 property tax exemption over the next decade. The expansion, according to the application, is expected to be completed by the end of the year. 

The Metro Council will meet at 4 p.m. Wednesday in the council chambers at City Hall, 222 St. Louis Street. Read the full agenda.