JASPER — The Jasper Common Council moved two tax abatements forward at its meeting Wednesday.
The council gave final approval for a six-year tax abatement to Kimball Hospitality — a division of Kimball International — for an automation project, and the council gave first approval to German American Bancorp for a nine-year tax abatement for a new administration center at the company’s property on 12th Avenue and Kimball Boulevard. German American will come before the council again at 7:30 a.m. on Tuesday, Aug. 1 for final approval.
Kimball Hospitality first came before the economic development commission in June to ask for a tax abatement for the $4.4-million project, titled Kimball Hospitality 16th Street Realignment Project. The project will install state-of-the-art manufacturing equipment in the plant, allowing the company to automate some of the labor performed by employees, such as moving product from station to station. The project estimates a loss of 10 jobs in the plant — from 220 to 210 — assuming capacity remains the same. However, John Kaufman, vice president of global operations, said the updated equipment will allow the plant to produce more product, leading to the potential for more jobs, should demand increase.
The economic development commission recommended a six-year tax abatement where Kimball would receiver 100 percent tax abatement in years one through three, 75 percent in year four, 50 percent in year five and 25 percent in year six. The council agreed with the commission’s recommendation in June with members saying they recognize the need companies have for updated technology.
“That’s going to be the future. We know that,” Councilman Kevin Manley said in July.
Representatives of Kimball Hospitality returned to the council Wednesday for a public hearing on the abatement and final approval from the council. No one spoke at the public hearing, and the abatement received unanimous approval.
Representatives of German American Bancorp also left Wednesday’s council meeting with their tax abatement one step closer to approval. The council heard a presentation on the company’s plan for a $6-million operations and administration center on the city’s southwest side near the Kimball Electronics headquarters. German American is a growing company — it acquired River Valley Bancorp in February 2016 — and expects more growth in the future. German American has already outgrown its three Jasper locations, so it needs a larger space to house jobs. During the presentation to the council, Eric Schue from Bingham, Greenebaum Doll, the law firm representing German American, pointed out that German American has the space in other cities to house the jobs, but the company wants to keep as many employees in Jasper as possible.
“(German American) is a Jasper company,” Schue said.
The 40,000-square-foot building will house 150 employees, and German American plans to move 90 full-time and six part-time employees as soon as it’s completed. Construction is scheduled to start in August and be completed in mid-2018.
The economic development commission recommended a nine-year tax abatement for the project, and the council agreed with the recommendation. The council approved setting up the property on 12th Avenue and Kimball Boulevard as an economic revitalization area, which completes the next step in the abatement process. The final step will come at 7:30 a.m. on Tuesday, Aug. 1, when the council holds a public hearing on the abatement and gives final approval.
Two other projects were announced for Jasper in the last month. Local restaurateur Servus! announced construction of a new corporation headquarters on South Newton Street. SERVUS! plans to build a mixed use building on the site with the company’s headquarters, high-end housing and retail space that is planned to include a McAlister’s Deli. The company received a tax abatement for its project. The other project will be a senior housing development by Indianapolis-based developer Legacy Living. The 110-unit development will sit on the Hochgesang property east of Buschkoetter’s Nursery and Lawn Care Center and north of State Road 56.