A 10-year tax rebate proposed to aid in a $1.6 million expansion at Dearco Glass, Paint & Decorating is being forwarded to the Shawano Common Council for possible action in July.
The city’s industrial and commercial development committee approved of the plan June 19.
Instead of using city money up front to aid in the building of infrastructure for a new building to the east of the existing structure, Dearco will receive a rebate on its paid taxes from 2026-34. The credit will total $230,802.
Eddie Sheppard, city administrator, explained how the credit would work.
“The city would retain all the taxes for the existing facility,” Sheppard said. “Moving forward, on an annual basis, we could reimburse 80% of the increment for the new facility, while the city would retain 20% of that.”
The city currently collects $18,039 a year in taxes from Dearco. The new building will generate another $30,368 a year in taxes.
It is projected Dearco’s project will be half complete in 2025 with the remainder done in 2026.
Dearco will be rebated 80% of the increase in taxes through 2034, which equates to $12,148 in 2025 and $24,295 in the remaining years. If the project value doesn’t increase as much as is expected, the credit dollars will decrease, but the percentage will remain at 80%.
Utility work for the expansion will be more than normal due to the company’s proximity to Green Bay Street and Murray Creek.
Dearco’s current site at 1495 E. Green Bay St. has a value of $950,400.
In May, Randy Mallmann, Dearco general manager, presented plans showing a proposed 33,600-square-foot building expansion. The new structure would be separate from the existing building and would be used for production. Some production equipment may be moved from the existing building. Customer service and retail sales will be expanded in the existing building.
Dearco currently employs 65 people. Initially, the proposed expansion is expected to add six new jobs.
Sheppard said the financial proposal to aid Dearco is similar to ones used by the city for other manufacturing building projects.
“The safest way that the city can be involved in utilizing TID (tax increment district) dollars is this way,” Sheppard said. “It’s completely contingent upon producing by the developer. We are protected in that we are not paying out anything beyond what we are agreeing to, we know what our fixed costs are going to be.”
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