IBJNews

City votes to end tax break for tech staffing firm

Back to TopCommentsE-mailPrintBookmark and Share

The Metropolitan Development Commission voted Wednesday to cancel a tax abatement for the Market Street headquarters of the Indianapolis-based tech staffing firm BCForward, since it didn’t hit job-creation targets laid out in a 2009 economic development agreement.

BCForward executives had agreed with the Department of Metropolitan Development’s recommendation to terminate the remainder of the 10-year abatement. The MDC’s vote was unanimous.

“Overall, all segments of BCForward are growing, and the company is enthusiastic about continuing that growth in Indianapolis,” company finance and accounting director Christy Paddock said in a prepared statement. “The company is grateful for the city’s cooperation and for the dedication of its people.”

The city’s metropolitan development staff has been reviewing tax-abatement compliance for five firms, and BCForward was the first to come before the commission. Others may ultimately be found in compliance, or the city may renegotiate terms of the agreements.

BCForward, formerly known as Bucher & Christian Consulting Inc., expected to add 200 jobs by the end of 2012, but the number by August was 166, said Ryan Hunt, senior project manager at DMD. That included employees of a non-technology staffing subsidiary, StaffForward. The company also retained 276 jobs, as promised.

Hunt said BCForward's hiring has been significant. “We’re not trying to penalize them,” he said. “We just have to maintain the integrity of the program by holding people to their commitments.”

Many of BCForward's new hires have left the company's payroll for permanent positions with clients, an unexpected trend that would have made it difficult to hit job-creation targets in the future, Hunt said.

The city will not try to claw back real estate and personal-property taxes in this case, as BCForward saved only $4,100 under the first three years of the abatement, Hunt said. When officials announced the agreement in 2009, they estimated the company would save about $40,000 in taxes over the 10-year abatement.

Losing the abatement won’t drive BCForward out of the city – the firm recently signed a five-year lease extension on its headquarters at 10 W. Market St., Paddock said.

Justin Christian and Tony Bucher founded the company in 1998. It is one of the largest minority-owned businesses in the city.


 

ADVERTISEMENT

  • Lilly...
    Lilly does a lot more for this community than just jobs.
  • what about Lilly
    Perhaps Lilly should be held to these standards since they promised 5000 new jobs and instead have cut 5000 jobs. I wonder if they lost their 10 year tax deferrals or any other benefits or are they too big to have this happen to them.

    Post a comment to this story

    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

    facebook - twitter on Facebook & Twitter

    Follow on TwitterFollow IBJ on Facebook:
    Follow on TwitterFollow IBJ's Tweets on these topics:
     
    Subscribe to IBJ
    ADVERTISEMENT