Fishers dangles possible tax break to lure unnamed prospect

July 8, 2014
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An unidentified company may take over a vacant distribution facility in Fishers, spurring town leaders to begin the process of making the property eligible for a tax abatement.

(Update: Consumer-products giant Jarden Home plans Fishers HQ)

Town Council on Monday approved a resolution necessary to establish 9999 E. 121st Street as an economic revitalization area. Nothing will be final until after a public hearing and confirmatory vote, Assistant Director of Economic Development Tim Gropp said.

Starting the process now allows the town to move quickly if the company chooses the 637,000-square-foot Fishers building, which has been vacant since Sony DADC Americas closed its 248-worker facility in 2012.

Economic development officials have fielded inquiries about the building since then, Gropp said, but the size and age of the building have been obstacles. Landing a new tenant likely will require a financial incentive, he told the council.

Council—and the public—will get details of the proposed project before any tax breaks are approved, he said. State law requires the town to provide 10 days’ notice before a public hearing.

Cassidy Turley brought the current prospect to the table, Gropp said. Senior Managing Director Katie Culp, who attended the Monday meeting, said she could not identify the client.

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  • FingerlickenFadness
    Do I smell even more business and real estate taxes being siphoned off to promote "economic development"? I'm lovin' it!

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  1. Apologies for the wall of text. I promise I had this nicely formatted in paragraphs in Notepad before pasting here.

  2. I believe that is incorrect Sir, the people's tax-dollars are NOT paying for the companies investment. Without the tax-break the company would be paying an ADDITIONAL $11.1 million in taxes ON TOP of their $22.5 Million investment (Building + IT), for a total of $33.6M or a 50% tax rate. Also, the article does not specify what the total taxes were BEFORE the break. Usually such a corporate tax-break is a 'discount' not a 100% wavier of tax obligations. For sake of example lets say the original taxes added up to $30M over 10 years. $12.5M, New Building $10.0M, IT infrastructure $30.0M, Total Taxes (Example Number) == $52.5M ININ's Cost - $1.8M /10 years, Tax Break (Building) - $0.75M /10 years, Tax Break (IT Infrastructure) - $8.6M /2 years, Tax Breaks (against Hiring Commitment: 430 new jobs /2 years) == 11.5M Possible tax breaks. ININ TOTAL COST: $41M Even if you assume a 100% break, change the '30.0M' to '11.5M' and you can see the Company will be paying a minimum of $22.5, out-of-pocket for their capital-investment - NOT the tax-payers. Also note, much of this money is being spent locally in Indiana and it is creating 430 jobs in your city. I admit I'm a little unclear which tax-breaks are allocated to exactly which expenses. Clearly this is all oversimplified but I think we have both made our points! :) Sorry for the long post.

  3. Clearly, there is a lack of a basic understanding of economics. It is not up to the company to decide what to pay its workers. If companies were able to decide how much to pay their workers then why wouldn't they pay everyone minimum wage? Why choose to pay $10 or $14 when they could pay $7? The answer is that companies DO NOT decide how much to pay workers. It is the market that dictates what a worker is worth and how much they should get paid. If Lowe's chooses to pay a call center worker $7 an hour it will not be able to hire anyone for the job, because all those people will work for someone else paying the market rate of $10-$14 an hour. This forces Lowes to pay its workers that much. Not because it wants to pay them that much out of the goodness of their heart, but because it has to pay them that much in order to stay competitive and attract good workers.

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  5. It is sad to see these races not have a full attendance. The Indy Car races are so much more exciting than Nascar. It seems to me the commenters here are still a little upset with Tony George from a move he made 20 years ago. It was his decision to make, not yours. He lost his position over it. But I believe the problem in all pro sports is the escalating price of admission. In todays economy, people have to pay much more for food and gas. The average fan cannot attend many events anymore. It's gotten priced out of most peoples budgets.

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