MARSHALL — This week, the Marshall City Council approved tax abatements for a pair of local businesses undergoing major expansions.

After two separate hearings, council members approved business tax abatements for Lockwood Motors and Bend Rite Fabrication.

Lockwood Motors is currently adding on to its facilities on East College Drive, and Bend Rite is expanding its facilities on West Main Street to accommodate new equipment, said Marshall Economic Development Authority Director Lauren Deutz.

The proposed tax abatements at the two businesses were for the capital improvements to the properties. Land value and current base values of the properties were not eligible for abatements.

“Bend Rite has recently purchased a laser, which will allow them to have the largest cutting capacity in the state of Minnesota,” Deutz said. “But with the purchase of the laser, they were in need of doing a building addition. So they’re currently constructing an 80- by 80-foot steel frame addition to the north end of the existing shop.”

Deutz said the cost of the Bend Rite expansion was roughly $600,000. The project would also create one job position with the laser operator, and potential for additional positions as Bend Rite’s work capacity increases.

The proposed tax abatement for Bend Rite was a total of $9,710 over a period of four years, Deutz said.

“Lockwood Motors is doing a major expansion of the dealership facility located on East College drive,” Deutz said. “The additions include a new service drive, quick service pit, and a new Chevrolet showroom. Construction is underway, and is anticipated to be completed in 2026.”

Deutz said the expansions at Lockwood Motors will also bring eight new service tech positions.

“It’s a 19,000 square-foot addition, at a roughly estimated $3.2 million valuation,” Deutz said of the project. The proposed tax abatement for Lockwood Motors would be a total of $41,850 over a period of four years.

Deutz said the city of Marshall had a couple of different criteria that it could follow in approving tax abatements, including that the project would retain and increase jobs. Deutz said the Lockwood Motors expansion would create new job positions. The project also redeveloped a property that had a building that was torn down.

“This is what our policy was created to do. And we thank the business owners for doing it,” said council member James Lozinski.

Council member Craig Schafer also had some positive comments about the two expansion projects. The Bend Rite expansion highlighted the kind of specialty services that were available in Marshall, he said.

“I think that as a business community, when we look at this, it puts Marshall in a really solid place,” said Schafer. “It’s really good to see that growth and that investment in the community.”