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Commission OKs Ameriplex, Rexnord tax abatements

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The Metropolitan Development Commission this afternoon approved two requests for property tax abatement, including one for a mammoth development known as World Connect at AmeriPlex.

South Bend-based Holladay Properties is planning to invest $120 million in the development at the business park near the Indianapolis International Airport.

World Connect would encompass 200 acres and contain about 3 million square feet of logistics, advanced manufacturing and office space. The developers estimate the project will create 1,700 jobs with an average annual salary of $45,000.

The nine buildings would be constructed to achieve Leadership in Energy and Environmental Design [LEED] certification and would include large distribution centers as well as medium bulk and flex space. 

The city entered into a contract with the developers and will receive a 1-percent equity share in the buildings.

The commission approved a 10-year tax abatement that would save Holladay $13.2 million in property taxes over the next decade.

In addition, the commission granted a five-year tax abatement to the Indianapolis plant of Rexnord Industries LLC that should save the company $79,653 in property taxes.

In exchange, Rexnord is promising to create 43 jobs and retain hundreds more. Milwaukee-based Rexnord’s plant, at 7601 Rockville Road in Indianapolis, manufactures industrial-roller and ball-bearing products for industrial uses.

The company is requesting the abatement to offset a $1.8 million investment in new equipment that will help it consolidate two manufacturing lines outside the state into the local facility.

The jobs created by the new production line are expected to pay an average hourly wage of $20.93, Rexnord said. In addition, the company said the new equipment will help to retain 270 jobs paying an average of $25.45 an hour. 

The abatements granted by the commission still need the consent of the City-County Council.
 

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  1. Aaron is my fav!

  2. Let's see... $25M construction cost, they get $7.5M back from federal taxpayers, they're exempt from business property tax and use tax so that's about $2.5M PER YEAR they don't have to pay, permitting fees are cut in half for such projects, IPL will give them $4K under an incentive program, and under IPL's VFIT they'll be selling the power to IPL at 20 cents / kwh, nearly triple what a gas plant gets, about $6M / year for the 150-acre combined farms, and all of which is passed on to IPL customers. No jobs will be created either other than an handful of installers for a few weeks. Now here's the fun part...the panels (from CHINA) only cost about $5M on Alibaba, so where's the rest of the $25M going? Are they marking up the price to drive up the federal rebate? Indy Airport Solar Partners II LLC is owned by local firms Johnson-Melloh Solutions and Telemon Corp. They'll gross $6M / year in triple-rate power revenue, get another $12M next year from taxpayers for this new farm, on top of the $12M they got from taxpayers this year for the first farm, and have only laid out about $10-12M in materials plus installation labor for both farms combined, and $500K / year in annual land lease for both farms (est.). Over 15 years, that's over $70M net profit on a $12M investment, all from our wallets. What a boondoggle. It's time to wise up and give Thorium Energy your serious consideration. See http://energyfromthorium.com to learn more.

  3. Markus, I don't think a $2 Billion dollar surplus qualifies as saying we are out of money. Privatization does work. The government should only do what private industry can't or won't. What is proven is that any time the government tries to do something it costs more, comes in late and usually is lower quality.

  4. Some of the licenses that were added during Daniels' administration, such as requiring waiter/waitresses to be licensed to serve alcohol, are simply a way to generate revenue. At $35/server every 3 years, the state is generating millions of dollars on the backs of people who really need/want to work.

  5. I always giggle when I read comments from people complaining that a market is "too saturated" with one thing or another. What does that even mean? If someone is able to open and sustain a new business, whether you think there is room enough for them or not, more power to them. Personally, I love visiting as many of the new local breweries as possible. You do realize that most of these establishments include a dining component and therefore are pretty similar to restaurants, right? When was the last time I heard someone say "You know, I think we have too many locally owned restaurants"? Um, never...

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