By Phil Wieland, Times of Northwest Indiana
phil.wieland@nwi.com
VALPARAISO | It appears the world will be assured an adequate supply of potato chip slicers, cheese shredders, french fry cutters and other food -cutting equipment for the next several years.
Urschel Laboratories, which manufactures all those devices for every major food processor in the United States and in more than 100 countries around the world, was granted a 10-year tax abatement by the City Council on Monday for the more than $11 million in improvements the company plans to make over the next several years.
The biggest share of the investment will be in equipment. Over the next five years, Urschel plans to spend about $7.8 million on new equipment for its plant at 2503 Calumet Ave. Of that amount, more than $6 million will be for new tool and die equipment. About $900,000 will be spent on equipment for its research and development department and another $500,000 will be used to upgrade the information technology system.
Beginning in 2014, the company plans to begin expanding its warehouse capacity, which will require an additional expense of about $3.25 million. In addition to keeping the 291 people currently employed, the improvements will enable the company to eventually hire up to 42 new employees. The abatement was approved unanimously without comment by the council, 5-0. Councilmen Al Eisenmenger and Jan Dick were absent.
The only comment made on the request for a five-year abatement for Boyer Properties Inc. was by Councilman Joey Larr, who repeated his objection that a tax abatement should create jobs. Developer Bruce Boyer plans to redevelop the site of the Valparaiso Motel, creating up to three new businesses, including a financial institution.
City Economic Development Director Matt Murphy said it will cost about $200,000 for site improvements needed before development can occur on the motel property. The existing buildings have to be demolished and the entire 3-acre site has to be filled in to raise it about 2 feet because it is in a flood plain. Boyer also needs to construct a sewer line to connect to one at Horseprairie Avenue.
Murphy said the property currently has about $19,000 in unpaid property taxes, which will be paid at the time of the sale of the property to Boyer. The property will produce about $65,000 a year in property taxes after it is developed. The abatement, which will phase in the total property tax by 20 percent increments each year, will save Boyer about $190,000. After the abatement fee of $30,000 to the city's Redevelopment Commission, the net savings is $160,000.
With Larr's negative vote, Boyer's abatement was approved by the minimum four votes needed. Boyer plans to spend about $3 million to develop the site.
Urschel Laboratories was granted a 10-year tax abatement by the City Council on Monday for the more than $11 million in improvements the company plans to make over the next several years. A five-year abatement was approved for Boyer Properties Inc., which plans to redevelop the site of the Valparaiso Motel, creating up to three new businesses, including a financial institution.