City Of Albany Enters Financing Agreement For KAK Industry Expansion

The City of Albany has approved financing that will allow for acquisition and the installation of manufacturing equipment for the KAK Industry facility at the Albany Industrial Park. The city had agreed to issue bonds not to exceed $10.5 million for the equipment and installation. KAK Industry has promised to make payments that will cover the principal and interest of the bonds as those bonds become due.

The agreement requires KAK to make annual payments in lieu of taxes for a 10 year period in the amount of 50 percent of the personal property taxes which would otherwise be due if the equipment were not owned by the city. If the city is used as a vehicle for the financing through industrial development revenue bonds, the equipment is exempt from personal property taxation. After the 10-year period, the company will assume the ownership of the equipment.

The project is being undertaken with the expectation that KAK Industry will create and maintain 30 full-time jobs by the end of 2024 which carry an average annual wage of $51,000. Local taxing jurisdictions are expected to receive nearly $750,000 in PILOT payments over 10 years.

The bond closed for the project took place December 29th.