Merrillville's Economic Development Committee voted on Tuesday to recommend two businesses be given tax abatements — a proposed long-term care facility for seniors and an expanding company that provides laundry and linen service for the health-care industry.
Long-Term Care Investments VI LLC is seeking a five-year real property abatement for the 108-bed long-term care facility it is building on 93rd Avenue east of Broadway, adjacent to Pinnacle Hospital.
Merrillville attorney Richard Anderson, representing the developer, said the facility would have 41 employees with an annual payroll of almost $2 million.
He said the project represents a $12 million investment in the community.
The company has built five similar facilities, including one in Chesterton, he said.
Company principals said they would break ground on the project as soon as the Town Council passes the abatement.
Councilman Shawn Pettit, D-6th and EDC chairman, said he told a representative for the company previously that he would support a tax abatement since the Merrillville Conservancy District is requiring the company to install a lift station on-site at a cost of about $122,000.
William Touchette, who is the attorney for both the Merrillville Plan Commission and the MCD, said at a previous meeting that the conservancy district has had problems with diapers and other items being flushed down the toilet by staff members at similar facilities, creating problems for the district.
"The third time's a charm at this parcel," Pettit said.
An initial developer looking at the 93rd Avenue site ended up building his long-term care facility in Crown Point. An initial attempt by Long-Term Care Investments was stalled by a moratorium on new long-term care facilities imposed by the state.
Pettit told Anderson that because the company will receive a tax abatement and the facility will be located in the Broadway tax increment financing district, the company must sign a labor agreement with Building Trades official Randy Palmateer agreeing to hire union contractors or pay a comparable wage.
The EDC also agreed to recommend the Town Council give a 10-year tax abatement on real and personal property to ImageFirst laundry services, which is expanding its facility located at 86th and Mississippi.
"They started in 2010 with zero employees and now have 78 employees with a payroll of more than $3 million," said Anderson, who also represented this company at the meeting.
"He's getting new customers and the business continues to grow," Anderson said of the owner.
He said the expansion will create 15 new jobs and will cost more than $1.5 million.
Pettit said the expansion will be to the south side of the current building.
"This is business retention," Pettit said.
He said the company has an existing abatement for its last expansion.