Carmel pharmaceutical firm eyeing move to Noblesville

September 11, 2013
Back to TopCommentsE-mailPrintBookmark and Share

A Carmel institutional pharmacy could move its growing drug repackaging operation to Noblesville’s Corporate Campus if city leaders sign off on an incentive deal.

Pharmakon LTC Pharmacy and sister firm Pharmakon Pharmaceuticals have asked for tax breaks worth about $225,000 in exchange for a nearly $1.5 million investment that would bring 65 jobs this year and another 70 by the end of 2018.

The companies, which supply long-term-care facilities and government hospitals with pharmaceuticals packed for convenience, together have more than 200 employees sharing a 50,000-square-foot facility, founder Paul Elmer told the Noblesville Common Council on Tuesday.

“We are seeing rapid growth in this highly specialized industry,” he said, adding that a new contract with a large hospital chain is driving the planned expansion of the pharmaceutical unit.

Pharmakon is proposing to improve and equip a vacant 37,000-square-foot industrial building at 14450 Getz Road. Elmer said he would like a location that could accommodate both companies once the Carmel lease expires.

The five-acre Noblesville property provides adequate room to grow, he said.

Pharmakon “fits the profile” of industries the city is targeting for its Corporate Campus, Economic Development Director Judi Johnson said, and the company is planning to occupy a building that has been vacant for more than a year.

The company expects a total payroll of more than $8 million within five years. The new positions will pay about $45,000 per year, Pharmakon said in its abatement application. Annual salaries for existing jobs were listed at $80,000.

That’s significantly higher than the $50,000 that Pharmakon LTC promised in 2008 when it won state and local incentives to move from Indianapolis to 801 Congressional Boulevard in Carmel. At the time, the company had 60 employees and promised to add another 50.
 
Indiana Economic Development Corp. provided $205,000 in tax credits and training grants in 2009, according to state records.

Last year, the city of Carmel pulled a 10-year personal property tax abatement (worth a whopping $16,700) after Pharmakon LTC failed to file a required compliance report.

Pharmakon had been late filing the form once before, City Councilor Luci Snyder said, and the promised salaries had not yet come to fruition—although the number of new jobs exceeded expectations.

Elmer told IBJ the company concluded that the small tax break “wasn’t worth the trouble” of completing the required paperwork.

Indianapolis consulting firm Ginovus is helping Pharmakon with the Noblesville deal, which received a preliminary OK on Tuesday. Final approval won’t come until after a public hearing.

ADVERTISEMENT
  • That is some expensive paperwork cost!
    Either something is fishy or their cost to fill out paperwork is astronomical. This seems to be a case of a business trying to maximize profitability via public assistance. The entitlement mentality has permeated our society. They no doubt will ask Carmel to raise the ante to keep those jobs here.

Post a comment to this blog

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
  1. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  2. If you only knew....

  3. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

  4. The facts contained in your post make your position so much more credible than those based on sheer emotion. Thanks for enlightening us.

  5. Please consider a couple of economic realities: First, retail is more consolidated now than it was when malls like this were built. There used to be many department stores. Now, in essence, there is one--Macy's. Right off, you've eliminated the need for multiple anchor stores in malls. And in-line retailers have consolidated or folded or have stopped building new stores because so much of their business is now online. The Limited, for example, Next, malls are closing all over the country, even some of the former gems are now derelict.Times change. And finally, as the income level of any particular area declines, so do the retail offerings. Sad, but true.

ADVERTISEMENT