CROWN POINT — The Lake County Council took the first step Wednesday to grant $30 million in tax breaks to a still-unidentified food distribution firm to locate in the county.
Six council members adopted a declaratory resolution designating a parcel of land at Interstate 65 and Ind. 2 interchange, east of Lowell, as an Economic Revitalization Area and propose property tax deductions to entice construction of a cold storage warehouse expected to generate an annual payroll of $2.1 million annually for 60 employees.
This sets up a Sept. 12 public hearing where the council could take a final vote to authorize tax abatements.
The abatements would forgive 100 percent of the taxes due on the equipment, buildings and other improvements in its first year of operation.
The deductions would decrease to 90 percent the second year, 80 percent the third and similar amounts in future tax cycles until the company pays its full tax bills at the end of 10 years.
The tax deductions could add up over a decade to as much as $30 million, the same amount the firm is expected to invest in roads, utilities, the warehouse and its storage equipment, Council President Ted Bilski, D-Hobart, said.
He added the land on which the buildings will sit will be fully taxed. "Right now it's unused land. Maybe we can create jobs for 50 or more Lake County residents. That is a win-win."
Councilman Eldon Strong, R-Crown Point, said he previously opposed tax incentives "that I think the location will develop on its own." He said he has changed to supporting them because he isn't willing to risk the warehouse going to another county where tax abatements are on the table.
Karen Lauerman, president/CEO of the Lake County Economic Alliance, requested the tax breaks on behalf of the firm, which she declined to identify Wednesday. She has been referring to it only as "Project Pumpkin."
She said anonymity protects Lake from other counties and communities that might lure the company away with their own incentives if they knew its name.
"The company would like to keep it confidential because if this should not come to fruition, people wanting to apply for the jobs will disappointed.
"I'm walking a fine line. I'm trying to be respectful of the public and not set ourselves up for failure or the company up for undue negative reactions," she said.
Lauerman said she expects the name will be made public Sept. 12 when company representatives appear before the council to urge passage of the tax breaks.