Anderson in running for new tool to attract investors

Indiana Governor Eric Holcomb on Thursday submitted Indiana’s 156 nominations for the Opportunity Zones program to the U.S. Secretary of the Treasury.

Holcomb sent on to the federal government four of the five Opportunity Zones requested by the administration of Anderson Mayor Thomas Broderick Jr. 

The four submitted zones include: large areas of the west side of the city from Madison Avenue to Park Road; downtown Anderson; and from the White River east to Rangeline Road, including the Mounds Mall area. Also included are the former General Motors properties on the west side of Scatterfield Road.

The governor didn’t submit the zone from 32nd Street south to 53rd Street.

It’s the second new economic development tool the city can utilize to attract investment.

Earlier this year, the Indiana Utility Regulatory Commission approved a proposal to lower electric rates for new investments.

If an existing company or new company invests $1 million or increases its electrical usage demand by 1,000 kilowatt hours per month, it would be eligible for a discounted rate.

The discounted electric rate will be 20 percent the first year; 15 percent in the second year; 10 percent for the third and fourth year; and five percent in the fifth year.

The Opportunity Zones are designated through census tracts, and to be eligible they must be low to moderate income areas, not exceeding 25 percent of the median income.

“There were 17 census tracts in Anderson that could qualify,” Broderick said. “We submitted the areas that made the most sense.”

Now that the governor has submitted the list, final approval has to come from the U.S. Treasury Department. The designation remains in place for 10 years.

“We developed a priority list,” Broderick said of the submissions.

Greg Winkler, executive director of the Anderson Economic Development Department, said the city believes Opportunity Zone designations could mean as much as $228 million in economic development projects that could be leveraged in the future. 

“People are already in the process of establishing the necessary fund to be eligible for the tax credits,” he said. “We have been in communication with two groups that are interested in the program. They are awaiting the outcome.

“This is a potential benefit for the city,” Winkler added. “Investors will look at Anderson.”

Broderick said Anderson getting four of the five census tracts designated was a success.

“This is another tool in the tool box,” Broderick said. “This absolutely puts us in a better position to attract investment. We wanted to make sure we were on the same playing field as everyone else.”

Winkler said city officials started putting the application together in January and there were good reasons why the specific areas were selected.

The federal Opportunity Zone program provides federal capital gains tax incentives to attract private sector investment to low-income urban and rural communities.

“This new program provides one more tool to attract investment and help more of our Hoosier communities succeed,” Holcomb said in a press statement.