The Batesville’s Redevelopment Commission
began paying a 20-year bond last year that encourages recapitalization of the industrial park. As a part of this, money from the sale of the shell building sale is expected to assist in building a paved road to it and the two lots behind the building. As pictured, current access is limited to a gravel road. Photo provided
BATESVILLE – The Batesville City Council recently approved a 10-year tax abatement plan for IKIO LED Lighting.
The “shell building” in Batesville’s industrial park is still in the process of being purchased by IKIO LED Lighting for $1.75 million.
The Economic Development Commission previously recommended to the city council that they approve a 10-year sliding scale tax abatement plan, beginning at 100% and ending at 0%. The scale decreases 10% each of the 10 years. The abatement, sale price and quick permitting were all incentives for IKIO to choose to invest in Batesville and locate their business here.
The business has been in conversation with city officials about investing a total of $25 million into the property and business and consequently into the local community over a five year period. The company plans to hire 30 employees over their first two years.
The incentives outlined in the city’s offer letter have been accepted by the purchaser.
“If they invest early, they could save nearly $1 million in taxes,” said EDC President Kevin McGuire at the October EDC meeting.
According to the EDC Director Sarah Lamping, the Indiana Economic Development Corporation has offered IKIO LED Lighting, LLC up to $300,000 in Economic Development for Growing Economy tax credits. Businesses are able to accept state and local incentives. In this case, IKIO will be benefiting from the city’s tax abatement and the state’s tax credits.
GM Development and Runnebohm Construction, in partnership with the City of Batesville, completed construction of the Batesville shell building in December 2015. The 51,360 square foot building has the ability to expand to 225,000 square feet.
The 11.34 acre site has utilities available and was built to be ready for any manufacturing company to quickly move in and begin production.
IKIO currently has six manufacturing facilities with over 30 years of experience and 1,300 certified products, according to their website. The company’s founder and CEO, Ekamdeep Singh, was recently awarded a Bronze Globee CEO World award for his company leadership during the pandemic.
IKIO is headquartered in Indianapolis.
IKIO has a two-part plan to implement at the Batesville location. Phase One should be completed by the first quarter of 2022 and includes establishing warehouse space for their products. Phase Two contains a build-out to include manufacturing.
The sale’s closure was set for mid-November but has been extended to Dec. 22. Mayor Mike Bettice expects things to begin moving quickly after the sale is finalized.
“We are excited about this opportunity,” Mayor Bettice said. “We’re looking forward to closing the deal next week and helping them [IKIO] get started.”
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