This story will be updated
Local officials approved tax abatements for Janicki Industries during their May 12 meetings.
Cascade County Commissioners approved two abatements, one for property tax and one for equipment, during their morning meeting.
City Commissioners approved a property tax abatement during a special meeting Tuesday evening.
Janicki requested the tax abatements for their prospective new expansion in AgriTech Park, on the east side of Great Falls, with about 185.5 acres within the city limits.
The Washington-based company is considering Great Falls and Twin Falls, Idaho as finalists as it selects the site for an estimated $830 million expansion.
City, county commissioners set hearings on Janicki tax abatement request for May 12
The company has said tax incentives and infrastructure support will be key factors in the final decision.
A Janicki spokesperson told The Electric in late April that the company is no longer considering Butte or East Helena for potential sites.
Janicki applied to the city and county for a new and expanding industry tax abatement, available under state law.
The proposed property is within the East Industrial Park tax increment financing district, which is set to expire in 2028, unless extended by commissioners or by bonding in the tax increment financing district, which they’ll be asked to approve next week for a different project.
City considering tax abatement for Janicki project
Under state law, the abatement allows a property to be taxed at 50 percent of its taxable value for the first five years after “commencement of construction,” and each year thereafter, the percentage must be increased by equal percentages until the full taxable value is attained in the tenth year.
In subsequent years, the property must be fully taxed.
Janicki is requesting a phased approval so that each phase will have its own separate tax abatement period, according to the city staff report.
The county also applied for an equipment tax abatement, which is only considered at the county level.
Under state law, county commissioners cannot deny the abatement, but can choose whether to set it at 100, 90 or 80 percent.
County Commissioners voted unanimously to approve the 80 percent level.
Great Falls a finalist for Janicki Industries expansion
The project is proposed in phases, with major site work and infrastructure improvements required, according to the city staff report, including:
- road improvements and expansion
- adjustments to utility access points to meet enhanced infrastructure demands
- extensive soil replacement and foundation reinforcement to ensure long‑term structural stability
- construction of multiple new facilities, including training centers, business relations offices, employee campus housing, engineering and design spaces, and expanded manufacturing buildings to support operational needs
Janicki is working with state and local officials to “assess available tools and incentives, recognizing that startup and site‑development costs are critical to the company’s final location decision,” according to the staff report.
The company’s release regarding the two final sites under consideration for the expansion stated that it was “pursuing infrastructure support to offset site development costs.”
State law requires that both the city and county consider the tax abatement on a project-by-project basis.
If one local governing body approves the tax abatement and the other does not, the abatement only applies to mills levied by the approving governing body.
The abatement does affect school funding, but excludes base mills levied by the county for schools and the state education equalization mills.
GFPS officials spoke in favor of the abatements at both the county and city meetings on May 12.
City approves tax abatement for hotel, hospital projects [2022]
In their application, Janicki estimates that, once complete, the full annual tax assessment on the property would be $6,549,250.
With the abatement, the property would generate $3,274,625 in annual taxes, compared to $0 without the abatement.
The city’s current tax abatements are:
In their application materials, Janicki wrote that “availability of the tax benefit for these approved phases is a critical factor in Janaki’s evaluation of Great Falls as the project location.”
“We see great opportunity in Great Falls, however, the scale of upfront investment required to build a campus of this size means that competitive tax and infrastructure support will be a deciding factor in where we ultimately build,” Nick Lavacca, Janicki community relations manager, wrote in the application materials.
City staff wrote in their staff report that the proposed Janicki facility would “generate significant taxable value and sustain economic activity well beyond the abatement period. Transforming underdeveloped land into an advanced manufacturing campus provides a lasting contribution to the city’s tax base and establishes a durable economic anchor that continues to drive reinvestment in adjacent commercial and industrial areas.”
City approves permit for transloading facility in AgriTech Park [2024]
Building within the AgriTech Park “ensures that past investments in utilities, transportation access, and rail infrastructure achieve their intended economic return. This strengthens the district’s foundation and encourages additional private capital to follow.”
If Great Falls is selected, the Janicki project “would lead to a significant increase in taxable value and economic activity, long after the abatement period. As the property transitions from underdeveloped land to a fully built-out advanced manufacturing campus, it will contribute substantially to the city’s tax base. More importantly, it establishes a durable economic anchor that drives continued reinvestment in surrounding commercial and industrial areas,” staff wrote.
