Common Council approves tax abatement for Hug Engineering, Inc.

Hug Engineering, Inc. is coming to Shelbyville.

The Columbus (Indiana) based manufacturer of exhaust aftertreatment systems for diesel, gas, and methanol engines has purchased the former ENBI Indiana, Inc. facility in Shelbyville, 1703 McCall Drive, with the goal of starting production in July.

Representatives of Hug Engineering appeared before the Shelbyville Common Council Monday night at City Hall seeking a tax abatement that will help with building modifications and overall improvements to the property.

The tax abatement will be for 10 years starting with 100% abatement in the first year and declining 10% each subsequent year.

Even with the tax abatement, it is estimated Hug will still pay more than $550,000 in taxes during its first 10 years of operation.

Hug’s announcement brings a 51,000 square foot vacant manufacturing facility that sits on 11.43 acres back to life.

Hug will make approximately $1.8 million in building and property improvements including:

• New LED lights for the interior and exterior
• Replace all HVAC units with high efficiency systems
• Repaint and reseal windows
• Replace and upgrade all exterior walls with new appearance
• Replace entire roof
• Add parking lot fencing with automatic gate
• Add concrete pads to parking lot and resurface

The new facility will employ approximately 37 employees with total salaries estimated to be $2.7 million.

The council approved the tax abatement request 6-0.

Councilman Denny Harrold was not in attendance at the meeting.

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