Tax incentives approved for expansion of Riverchase dental implant manufacturer
HOOVER – The Hoover City Council at its meeting on Monday, Dec. 17, approved tax abatements for a Riverchase company planning a $2 million expansion.
The incentives will total about $121,000, but the expansion is expected to benefit Hoover through additional revenue.
Hoover expects a return of about $240,000 over the next 10 years through increased value of the property, new property tax revenue related to new equipment, building permit fees and new employees generating additional sales tax revenue.
Hoover City Schools could see a revenue increase of about $85,000 because of the expansion, city Economic Developer Greg Knighton said.
BioHorizons was founded through research conducted at UAB in 1994, according to the company’s website, and has become a leader in the dental implant industry.
With an international headquarters in Riverchase Corporate Park, BioHorizons is a wholesaler of medical, dental and hospital equipment and supplies, and meets the definition of an “industrial or research enterprise” set forth in Alabama law.
“The City Council has determined that the company should be granted an abatement of taxes as set forth herein in order to encourage as additional incentive to the company to undertake the project in the city,” read the Council’s resolution.
The expansion would bring about 60 new jobs to the city with an average annual salary of about $50,000.
BioHorizons President and CEO Steve Boggan, a resident of Greystone, said the company’s products are sold in more than 70 countries around the world.
“We’re very excited to remain here in the city,” Boggan said.
The abatement will include an estimated $18,165 in noneducational property taxes and $103,125 in construction-related transaction taxes.
The company’s expansion should start in December and be completed by the end of 2019.
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