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Software firm seeks tax breaks for HQ move, expansion

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A local software firm is seeking a property-tax break from the city to help it move its headquarters from leased space downtown to a pair of vacant buildings it owns south of Broad Ripple.

The Consultants Consortium Inc., which does business as TCC Software Solutions, said it plans to spend about $1.3 million to renovate the buildings on the 3.6-acre property at the northeast corner of Winthrop Avenue and East 52nd Street. The property is bordered by the Monon Trail on the east.

The buildings, which are in an Economic Revitalization Area, were formerly occupied by a window manufacturer and insulation contractor. The renovation would turn the industrial buildings into office space.

TCC said the move from 1099 North Meridian St. to the new facility will help it retain its 112 employees and hire 12 more workers by 2018. The retained and new employees will be paid an average wage of $32.66 per hour, the company said.

Department of Metropolitan Development staff are recommending the city approve the company's request for a property-tax abatement that would save the firm almost 59 percent on over a six-year period.

The city said the company would save an estimated $51,944 in property taxes over the six years while paying $36,597.

After the abatement, TCC would pay an estimated $14,757 annually in property taxes.

The renovation of the property would mean an increase in the tax base of about $455,000 of assessed value, the DMD said.

"This project represents an important step in the continuing redevelopment of Midtown, with the potential to catalyze further development in the area," DMD said in a report.

The proposal will be  presented at the Jan. 15 Metropolitan Development Commission meeting. It is the set for final approval and a public hearing at the Feb. 5 MDC meeting. After that, it is subject to City-County Council approval because the property is in a TIF district.

TCC, founded in 1996, produces mobile workforce and technology software, child care information systems and other tailored software applications.
 

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  • thanks for
    Researcher - OK that makes sense, thanks for clarifying. To make the numbers in the article work, it seems like TCC would be adding closer to $492K to the base ($14,757 / 3% = $491,900) by way of their investment in improvements. Also, if the current assessment is $957,400, shouldn't the estimated property tax be closer to $28K? (i.e. $957,400 * 3%.) I'm not sure if the promised job retention and and expansion justifies starving the TIF district for 6 years, although I admit I'm not clear on how losing that $52K over 6 years would actually affect the bonding capacity of the TIF. It seems minor, but every little bit of incremental property tax revenue is important in a TIF district. Either way, good to have the investment and the jobs, just need to make sure that we keep the TIF healthy as well.
  • clarity
    Not exactly. They will continue to pay the taxes on the full base assessment ($21k/year), as the law does not allow abatement of existing assessed value. The taxes on the incremental increase in assessed value over the base as a result of the improvements will be phased in over 6 years, 100% abated the first year, 85% the next and so on, until finally the full taxes will be paid annually on the increase starting in year 7. The overall savings over the six years will be approximately a $51k. Im not sure it's in the TIF but if it is that means the $36,000 paid during the abatement period and about $14k every year after that would contribute toward TIF funds while the base continues to go to the general fund.
    • Please
      So according to the numbers, it seems that TCC will have the portion of their property taxes derived from their current base assessment ($957,400) abated over 6 years (100% abated year 1, 85% abated year 2, etc...for a total savings of ~$100K) while immediately paying full property tax only on the assessed value of their new improvements (~$455,000 assessed value @ 3% = ~$13,650). Is this correct? If so, it seems like a nice way to still "feed" the TIF district while also offering a significant subsidy to help the business. If anyone can verify that this is the case, please do.
      • BR resident
        A big thank you to TCC for buying and fixing up a dilapidated eyesore. That's a huge employer for the area !
      • Cheers to Meridian Kessler
        TCC Software Solutions move from downtown Indianapolis to Meridian-Kessler (AKA the established vibrant community located south of Broad Ripple in the heart of Midtown) is another demonstration of the desire for businesses to locate in livable walkable neighborhoods. For nearly a century, Meridian-Kessler has provided Indianapolis citizens a place to live, work, shop, play, learn and grow. Indianapolis is fortunate to have a diverse, eclectic and sustainable community like Meridian-Kessler so close to downtown. We’re ahead of the national trend to create such places where people can avoid commutes and feel connected to neighbors and businesses.
      • Math
        So yes, people do your math first!
      • details
        Actually the property is currently assessed at $957,400 and the estimated 2014 tax bill is $20,993.14 which they will continue to pay. The values in the article only represent the tax implications on the estimated $455,000 incremental increase in value resulting from the improvements. So I would say that foregoing an additional $51k over six years while stilll collecting an additional $36k over that time and $15k every year after that isnt too bad of a deal to have a vacant commercial property adjacent to the Monon updated and used productively. Not to mention the restaurants on College probably wont mind another 124 employees in walking distance for lunch and a drink after work!
      • Hilarious
        approximately 88,000 in taxes over 6 years, comes to taxes of under 15,000 per year. If the tax rate for business is 3 percent then the whole property is worth $500,000. As they are ADDING $455,000 to the assessed value, the property must be worth only 45,000 ap present...People, do your math before ripping off the taxpayers.

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