Truesdale's board of aldermen last week gave preliminary approval for tax abatement and a bond issue that will pave the way to the project beginning later this summer or early in the fall. Final approval is expected next month. Coca-Cola officials said the $50 million in bonds would be used to purchase equipment and build a new 33,000-square-foot facility, to be constructed behind the company's existing plant on Veterans Memorial Parkway. The building addition will be used to launch a new "hot fill" product line which includes Power Ade and Glaceau Vitamin Water. Under terms of the agreement approved last week, the city of Truesdale will issue the $50 million in bonds which will be retired through payments by the company. The tax abatement will be structured over a 10-year period. Coca-Cola will pay no taxes on the new facility the first year, then the amount will increase in 10 percent increments over the life of the abatement. By 2018, Coca-Cola will be paying a full 100 percent share of its taxes, according to Truesdale city officials. "We think the expansion project will be very good for Truesdale and very good for Warren County," Truesdale Mayor Ray Gibson said. "It's a win-win situation for everyone." Gibson said he felt the expansion project would provide "an important economic step forward for everyone in the county." Truesdale city officials estimated the amount of tax revenue collected over a 10-year period would amount to slightly more than $2.5 million. That is less than half of the more than $5.5 million the city and Warren County would have collected without the abatement. But Truesdale officials stressed the fact Coca-Cola was considering at least two other locations among its 22-plant network for the expansion project. "They didn't have to come here," said Truesdale City Clerk Mary Lou Rainwater. "But they told us we were their first choice. They wanted to come here and we wanted them to build here." "It's about half a loaf," said Gibson of the difference in revenue potential for the city and county. "But we thought half a loaf was much better than nothing at all if they had elected to build this plant somewhere else." According to a chart prepared by the city, Truesdale stands to gain an additional $294,000 in tax revenue during the 10-year abatement period. The school district would be the biggest benefactor of the additional tax revenue, netting nearly $1.6 million in the first 10 years. The Warrenton Fire Protection District would gain about $163,000 over 10 years, while the Warren County Ambulance District would gain about $137,000 in added tax revenue. Approving the tax abatement, city officials said, was only the first phase of the project. Next the city will hold a public meeting for the Industrial Development Plan on June 25 at its board of aldermen meeting at Truesdale City Hall. If the ordinance approving the plan and the issuing of bonds passes that hurdle, which is considered likely, it will go before the county commissioners on June 30 for approval there. City officials said they would then expect to pass the ordinance at their July 9 aldermanic meeting. "We're optimistic we'll be able to proceed with this plan throughout each step," said Gibson. Warrenton Mayor Greg Costello viewed the announcement as "great, exciting news. It's a very important step for the city." Assuming all the hurdles are cleared, Coca-Cola officials said they expected to begin construction work shortly after approval comes from the Truesdale Board of Aldermen in mid-July. "I would anticipate we would start the expansion project as soon as we can after we get the approval from the city," said Coca-Cola spokesperson Becky Kidd, plant manager for the Truesdale facility. "We anticipate the building being done, the equipment being installed and the line to become operational in March of 2009," Kidd added. "We're getting ready to go on this." Kidd said she was delighted that the parent Coca-Cola company had chosen Truesdale for its expansion project. "We're extremely excited to have this opportunity here in Truesdale," she said. "Our company believes the demand for these types of specialized beverages will continue to increase and the plant at Truesdale will be ready to meet and serve those needs." Kidd said the additional facility would likely increase the work force at the Truesdale plant, which currently numbers about 150. But she said she didn't know exactly how many new jobs might eventually be created. Gibson said he was pleased that the new facility, as well as the distribution warehouse, would be in Truesdale. "The employees could possibly live here," said Gibson, "and they will certainly spend some of their money here. The economic benefit of that is very important to the future development within Warren County."