Bob Kasarda, Times of Northwest Indiana
bob.kasarda@nwi.com
VALPARAISO | Citing the need for more jobs, a quality health care facility and a general boost to the local economy, the Porter County Council unanimously approved tax abatements Thursday evening for the new Porter hospital.
"I think this is just the tip of the iceberg of what could happen out there," council member Laura Blaney said.
The abatements on the building and equipment, which will amount to $12.4 million in tax breaks over a 10 year period, also were supported by the majority of more than 30 people who spoke during a public hearing.
Task Force Tips President Steward McMillan responded to opponents' biggest concern when he said tax abatements are not just about attracting new businesses, but also making sure existing companies succeed.
Ironworker official Jeff Chidester said the abatement is needed in order to relieve the 50 percent unemployment rate among his union workers.
Porter hospital CEO Jonathan Nalli said Thursday 600 construction jobs will be created over an 18- to 24-month period when the 225-bed hospital is built at the northwest corner of Ind. 49 and U.S. 6.
The number of full-time jobs will be boosted from 1,500 to 1,626 within two years of the hospital opening, he said.
Among those who spoke out against the abatement was Duneland Schools attorney Mike Harris, who said Community Health Systems of Tennessee already agreed to build the new hospital when it purchased the existing facility from the county two years ago.
The council attached a few last-minute requirements to the abatement, including one requiring the hospital to pay a fee on the $12.4 million in savings that will generate an estimated $800,000 over 10 years for economic redevelopment, council attorney Scott McClure said.
The hospital also is required to ensure construction workers receive the prevailing wage and to negotiate in good faith to continue ambulance service when the current contract expires in 2011.
Nalli said the hospital will be looking for an increase in the $500,000 annual subsidy now being paid by the county.
Council member Dan Whitten said he is generally not a fan of tax abatements, but is committed, along with other community leaders, to bring the best hospital possible to the county.
"This is an investment," he said, "it is not a free ride."
Council member Karen Conover said she was prepared to vote against at least part of the abatement request but was won over after hearing how Porter plans to go above and beyond the commitments of its purchase agreement.