A local logistics company has won approval for incentives to move its operations to Crestview Hills.
Crestview Hills City Council held a special meeting last week and unanimously (4-0) approved the incentive package for Mitchell-based Ft. Whitehorse Freight, which plans to move to 2670 Chancellor Drive in Thomas More Office Park.
“We are thrilled to be moving there,” said Mike Bilokonsky, president of Whitehorse Freight. “We can’t wait to move in and are really excited about all the office space we’re going to have.”
Cities can offer incentives through credits or rebates to companies like Whitehorse Freight if they move and start an economic development project.
“We are hopeful and excited for Whitehorse Freight to come to town,” said Crestview Hills Town Administrator Alex Mattingly.
Whitehorse Freight has outgrown its current offices and is looking to hire more employees, according to the Cincinnati Business Courier. Whitehorse Freight started in 2015 and has grown to employ around 65 people today.
Bilokonsky told LINK nky that tax incentives approved by Crestview Hills will help the company to hire.
“We can sue people from Kentucky for trying to come and work for us,” Bilokonsky said. “With an incentive like that, it’s even more interesting to keep hiring, hiring, hiring.”
Northern Kentucky Tri-Ed helped facilitate conversations and negotiations between the city, county, and state about putting in place a set of incentives that could best help Whitehorse Freight.
The first incentive is a Kentucky Business Investment, or KBI.
KBIs are intended to offset the costs of starting or renting a business over a 10-year period. Incentives are performance-based and benchmarks are set throughout the 10-year period. The benchmarks relate to job creation, average wages and capital investment.
In order to achieve these benchmarks, the company commits to paying a certain average salary and then estimates what its capital investment cost would be to get the facility ready for operation.
The second incentive is a gross receipts tax credit linked to an economic development project.
A gross receipts tax is applied to a company’s gross sales for business-to-business transactions and end-customer purchases, with no deduction for company bus fares, according to taxfoundation.org.
Crestview Hills imposes a 0.075% tax on gross receipts collected by each business or entity operating in the town.
Bilokonsky said ARC Development’s Greg Harris was instrumental in helping Whitehorse Freight receive the Crestview Hills tax incentives.
“Greg Harris was very helpful to us and was the main lead in helping us discuss incentives with Crestview Hills,” Bilokonsky said.