The Albany City Council may vote on Wednesday on whether to approve extending a property tax abatement agreement with Stack HIP LLC, a company that looks to be headed to Albany with up to 18 new jobs.
In a memo submitted to the City Council, Albany Millersburg Economic Development Corp. President John Pascone asks the council to approve a resolution that would extend the property tax exemption for the company to five years.
The proposed site of the business is in an enterprise zone; businesses that move into an enterprise zone can take advantage of temporary exemptions from local property taxes.
Under the standard enterprise zone exemption rules, companies can receive a three-year exemption. Companies that agree to pay wages and benefits in excess of 150 percent of the county’s average annual wage can receive a two-year extension. Currently, Linn County’s average annual wage is $41,556. To qualify under the 150 percent exception, the wage would have to be $62,334.
Because Stack is not an existing business in the area, it does not need to expand its workforce by 10 percent to qualify for the exemption. According to Pascone, the company plans to create six to 18 new jobs.
Stack HIP, or Stack Metallurgical, specializes in metal works and offers heat treatment and hot isostatic pressing (HIP) among its services. According to the city's economic development manager, Seth Sherry, the hot isostatic press process is required for working with titanium.
“For the titanium casting process, every piece has to be hipped,” he said, noting the industry term for the process. Sherry also cited several local businesses that deal in titanium casting and employ the hot isostatic process.
“There are two locations on the West Coast that do this and one is in Camas, Washington; the other is in Long Beach, California. So, every part has to be put on a truck and north or south and I’ve been told the turnaround time can be three weeks,” Sherry said.
In January, Stack Metallurgical released a press release about its plans in Albany.
According to the release, the company plans to add “Mega-HIP” equipment to its services — equipment the company said would provide services not found elsewhere in the Northwest.
“We are truly delighted to bring large-scale HIP capacity to the Northwest U.S. market,” Doug Puerta, Stack CEO, said in the release. “HIP is a complimentary service to our existing portfolio of offerings. Stack has always worked closely with its clients to make smart investments to support their metal processing needs. By expanding into HIP, we’ll be in a position to offer a really outstanding value proposition of capability, capacity, quality, and service.”
The memo from Pascone states that the company will be making a $30 million investment in the city, including purchasing land, building a new building and installing a $20 million HIP furnace, a tool used in hot isostatic pressing.
Stack Metallurgical lists a location in Albany on its website, 4322 Marion St. SE, and notes services coming to the location in the fourth quarter of 2019.