The Merrillville Town Council is considering a tax abatement for Panduit Sales to help it develop its distribution center. Panduit says it's investing almost $77 million into the 475,000-square-foot facility at 9945 Mississippi Street. It's asking the town to abate personal property taxes on almost $23 million worth of logistical distribution and IT equipment.
Lars Forsgren with Panduit told the Merrillville Redevelopment Commission last week that it's a major investment. "We chose this because of the location and the support from the town here," Forsgren said. "And then we also chose it because we could buy the land and make it so we can expand on the land. So we are looking forward to a long-term commitment."
Under the proposal, Panduit would pay no property taxes on the equipment for three years. Then, they'd be phased in over the next seven years. Panduit plans to hire 130 to 150 new employees at a total annual payroll of more than $7 million.
The town council approved the first step last week, by declaring the Panduit property an economic revitalization area. "This is a huge boom in the economic development arena that Merrillville has never seen, similar to the Amazon project," said council member Shawn Pettit.
But some residents were less convinced about the need for a tax incentive. Samuel Payan noted that Panduit appears to be doing well financially and questioned whether tax abatements significantly impact job creation.
"They're often seen as a form of wealth transfer from local citizens to corporations, so as we make decisions, again, we're constantly making them against interests of our own people," Payan told council members. "And we need money. We don't need money to leave our door."
The company says the abatement will free up funds to reinvest in the business, increasing its competitive advantage, which, in turn, could lead to more jobs.
Residents will have a chance to weigh in during a public hearing on March 11, before the tax abatement goes up for final approval.
