MARION -- U.S. Yachiyo Inc. plans a $12.7 million expansion that would create 23 additional jobs at its Marion Dual Rail Industrial Park plant.

The expansion depends on approval by the city and county of an agreement that would have U.S. Yachiyo receive a 10-year, 53 percent tax abatement on equipment, machinery and inventory involved in the expansion. The company also would pay 100 percent of its tax on real estate improvements included in the expansion to a Tax Increment Financing fund for 10 years.

The project would include $490,000 in new construction, $10.5 million in new machinery and robots, $1.46 million in new tooling and $230,000 in new inventory, said Sherri Spitzer, administration manager at U.S. Yachiyo's 1177 Kellogg Parkway plant.

U.S. Yachiyo would add 2,156 square feet to its existing 122,000-square-foot plant.

"It makes sense for us to do it here," Spitzer said. "We currently have this equipment and we understand its operation. And the community's been good to us."

The supplier for Honda of America Mfg., Inc. is expanding operations to produce additional fuel tanks for the automobile manufacturer, she said.

Ridgedale Local Schools Board of Education, which also would receive 50 percent of the local portion of income tax paid by employees hired as part of the expansion, approved the agreement Monday.

Marion City Council's Jobs and Economic Development Committee will discuss the abatement Monday, and City Council will consider it Feb. 11. The request will go before Marion County commissioners after that.

Ridgedale treasurer Bev Marshall said the city did not have to present the abatement request to the school board, but the school district appreciated being informed.

"I think this is a pretty good deal for everybody," said Ken Lengieza, director for the Marion City/County Regional Planning Commission, who presented the request to the school board.

Money from the Tax Increment Financing fund can be used toward public infrastructure improvements, such as road widening or sanitary sewer extension, at the Dual Rail Industrial Park, he said.

The company approached the planning commission about its abatement request Jan. 11.

If it does not receive the abatement, U.S. Yachiyo said it will expand one of its other plants in Alabama or Canada, said Dave Claborn, president of Community Area New Development Organization Inc.

"I think it's great that this is coming along," Claborn said. "We've anticipated or hoped for expansion at the plant since it was built. We're basically benefiting from Honda's success."

Reporter John Jarvis: 740-375-5154 or jjarvis@nncogannett.com

Originally published Thursday, January 31, 2002