Valparaiso is looking to help a developer attract more industry to the city.
The owner of Indiana Beverage plans to build a second spec building on its property off of State Road 49. The 115,000-square-foot "flex building" would be able to house anywhere from one to nine tenants, ranging from offices to manufacturing.
Vanessa Lynch with the Valpo Chamber says there's a strong demand from site selectors for these types of facilities. "We have not had the buildings like this to be able to submit, in several years," Lynch told the city council Monday.
Now, Lynch said she's pitching the site to four manufacturing businesses.
Council members unanimously agreed to grant a tax abatement, phasing in property taxes on the new building over seven years. The developer's attorney, Todd Leeth, said those reductions will be passed along to tenants.
"That's a significant lure for us to fill that building," Leeth told council members.
Valparaiso Development Director George Douglas said the city has gotten a good return on investment, with its past incentives for Indiana Beverage and its first spec building. He told council members that the 36-acre site was assessed for $5,400 in 2000. Now, it's assessed at almost $18 million dollars and is set to generate more than $400,000 in tax revenue this year.
"This is economic development 101," Douglas said. "You've got a family, you've got a developer taking the risk. You've got local contractors doing the job. This is a quality project that we should be very proud of in a corridor where we want this to happen."
While Council President Robert Cotton has been critical of other abatement requests, he felt this one met his criteria. "A couple of the most important things are who's going to get the jobs and, as well, that smaller businesses are able to be touched by the impact," Cotton said.
Council member Jack Pupillo called the project a "layup" for Valparaiso. "That's exactly what businesses are looking for," Pupillo said. "They want a site that's ready so that they can move in or expand operations."
While the city is abating property taxes, the redevelopment commission will collect a smaller "impact fee." The developers hope to complete the new spec building by the end of 2025.
