Two Indianapolis companies that received tax-abatement agreements from the city in 2007 have had the incentives canceled for failing to meet investment and employment goals.
The city’s Metropolitan Development Commission on Wednesday voted to rescind the abatements given to Haverstick Consulting Inc. and Redcats USA.
Haverstick, a defense-consulting firm whose financial backers include former Conseco executives Stephen Hilbert and Rollin Dick, was acquired by Kratos Defense & Security Solutions Inc. of San Diego in 2007 for $90 million.
Haverstick agreed that over six years it would invest $1.1 million in operations and hire 40 employees at an average hourly wage of $34.50, in addition to retaining 68 employees at an average hourly wage of $37.65.
As of the end of 2010, Haverstick had made $680,000 in investments and had total employment of 36, prompting the city to start the process to cancel the incentives.
The company received $2,558 in tax savings of an estimated potential of $64,516, the city said.
Haverstick referred questions to its San Diego headquarters, which did not return calls from IBJ.
Meanwhile, New York-based Redcats USA agreed to spend $21 million over eight years to upgrade its clothing-catalog operation on Southeastern Avenue. The company also said it would add 42 jobs to the nearly 900 workers employed at the site and a warehouse in Plainfield.
The new jobs were expected to pay an average hourly wage of $31.40 and the 894 retained jobs were supposed to pay an average hourly wage of $26.90.
As of the end of last year, Redcats had made $6.2 million in investments and had total employment of 692, according to city officials.
The company received $52,439 in tax savings of an estimated potential of $1.8 million, the city said.
Calls to Redcats Southeastern Avenue facility were not returned.
The city said both companies agreed to terminate their abatements.
The Indiana Economic Development Corp. offered both companies training grants. Redcats received $142,560 and is no longer eligible to receive more state funding, an IEDC spokeswoman said. Haverstick received $8,800 and also is no longer eligible for additional state funds.