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Lilly's $30.6M tax abatement request clears hurdle

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Eli  Lilly and Co.’s request for more than $30 million in tax breaks on $400 million in construction projects and improvements to existing operations downtown has cleared a hurdle with the city’s Metropolitan Development Commission.

The Commission granted preliminary approval Wednesday afternoon on Lilly's two 10-year tax abatement requests totaling $30.6 million. A public hearing and final consideration are now scheduled for May 1.

Over the last several months, the pharmaceuticals giant has rolled out plans for a manufacturing plant southwest of downtown Indianapolis where the firm will manufacture cartridges for insulin.  

Construction is already under way for the 164,000-square-foot plant on South Harding Street, adjoining Lilly’s existing manufacturing complex known as Lilly Technology Center.

Lilly’s investment in the project is estimated at $320 million. In addition, it is planning a new inspection facility that will add another 30,000 square feet to the project, plus renovations to existing buildings on the Lilly Technology Center campus and to the Lilly Corporate Center. In total, Lilly’s investment is expected to reach $400 million.

MDC staff opined in a report to the commission that the project would not be economically feasible without the tax abatement.

The staff report states that the new investments will allow Lilly to retain 175 local employees, who will earn an average of $30.94 an hour. A company spokesman has said that the project would involve a combination of existing employees and new workers.

Over the 10-year abatement period, Lilly still would pay $25.4 million in taxes. After that, it would pay about $5.2 million in taxes annually related to the projects.

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  1. If I were a developer I would be looking at the Fountain Square and Fletcher Place neighborhoods instead of Broad Ripple. I would avoid the dysfunctional BRVA with all of their headaches. It's like deciding between a Blackberry or an iPhone 5s smartphone. BR is greatly in need of updates. It has become stale and outdated. Whereas Fountain Square, Fletcher Place and Mass Ave have become the "new" Broad Ripples. Every time I see people on the strip in BR on the weekend I want to ask them, "How is it you are not familiar with Fountain Square or Mass Ave? You have choices and you choose BR?" Long vacant storefronts like the old Scholar's Inn Bake House and ZA, both on prominent corners, hurt the village's image. Many business on the strip could use updated facades. Cigarette butt covered sidewalks and graffiti covered walls don't help either. The whole strip just looks like it needs to be power washed. I know there is more to the BRV than the 700-1100 blocks of Broad Ripple Ave, but that is what people see when they think of BR. It will always be a nice place live, but is quickly becoming a not-so-nice place to visit.

  2. I sure hope so and would gladly join a law suit against them. They flat out rob people and their little punk scam artist telephone losers actually enjoy it. I would love to run into one of them some day!!

  3. Biggest scam ever!! Took 307 out of my bank ac count. Never received a single call! They prey on new small business and flat out rob them! Do not sign up with these thieves. I filed a complaint with the ftc. I suggest doing the same ic they robbed you too.

  4. Woohoo! We're #200!!! Absolutely disgusting. Bring on the congestion. Indianapolis NEEDS it.

  5. So Westfield invested about $30M in developing Grand Park and attendance to date is good enough that local hotel can't meet the demand. Carmel invested $180M in the Palladium - which generates zero hotel demand for its casino acts. Which Mayor made the better decision?

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