IBJNews

Startup bakery seeking tax breaks on $78M project

Back to TopCommentsE-mailPrintBookmark and Share

A new firm specializing in baked goods has a $78.3 million project in the oven that could give rise to 241 jobs in the Indianapolis area by 2018.

Dallas-based Specialty Bakery LLC plans to build a 227,000-square-foot production and distribution facility on 27 acres within the Purdue Research Park near Indianapolis International Airport. The startup would make make frozen bread, dough and cookies, according to information filed with the Indianapolis Department of Metropolitan Development.

Specialty Bakery’s products would be sold to quick-service restaurants, in-store bakeries and food-service distributors. The company says it has secured a 15-year contract with a global quick-service restaurant, making it necessary to kick off development of its first facility.

The company plans to spend about $24.3 million to develop the plant, plus another $54 million for manufacturing, IT, and research and development equipment.

To help offset the costs, the company has requested tax breaks on the project.  A proposed 10-year tax abatement on the equipment would save the firm about $3.4 million, and a 10-year abatement on the real estate improvements would save about $2.5 million.

During the 10-year abatements, the firm still would pay an estimated $2.3 million in personal property taxes and $2.6 million in real property taxes.

City development staffers estimate that the facility would add $17 million in assessed value to property tax rolls, and that the purchase of the equipment would result in an increase to the tax base of about $21.6 million in assessed value in the first year of operation.

The 241 jobs created by the project would pay an average wage of $18 per hour.

The Indianapolis Metropolitan Development Commission will consider the tax break requests at its meeting scheduled for 1 p.m. Wednesday.

City development staffers have recommended that the commission approve the abatement requests. “In staff’s opinion, a project such as this would not be economically feasible without the tax abatement incentive,” according to a staff report to the commission.
 

ADVERTISEMENT

  • Bakery design planning
    Major equipment supplier for specialty baking equipment looking for contact information regarding the person or company designing this new facility. Any feedback is appreciated.
  • Kudos!
    Major applause for Brian Wahl's sarcasm! Ha!
  • Why New Construction?
    Is there not a way for Specialty Bakery to make use of any one of the numerous vacant "big-box" manufacturing facilities which currently exist in Marion county? I'm all for attracting new employers with tax incentives, but tie them to re-development of existing vacant properties.
  • Awesome
    Congrats to Indy and the State of Indiana on attracting this company by wisely using incentives to bring new jobs. Indiana is obviously one of the top business-friendly states. Keep it up Pence!
  • $18.00
    Fact check please ,$18.00 an hour? Really?

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
  1. So much for Eric Holder's conversation about race. If white people have got something to say, they get sued over it. Bottom line: white people have un-freer speech than others as a consequence of the misnamed "Civil rights laws."

  2. I agree, having seen three shows, that I was less than wowed. Disappointing!!

  3. Start drilling, start fracking, and start using our own energy. Other states have enriched their citizens and nearly elminated unemployment by using these resources that are on private land. If you are against the 'low prices' of discount stores, the best way to allow shoppers more choice is to empower them with better earnings. NOT through manipulated gov mandated min wage hikes, but better jobs and higher competitive pay. This would be direct result of using our own energy resources, yet Obama knows that Americans who arent dependent of gov welfare are much less likely to vote Dem, so he looks for ways to ensure America's decline and keep its citizens dependent of gov.

  4. Say It Loud, I'm Black and Ashamed: It's too bad that with certain "black" entertainment events, it seems violence and thuggery follows and the collateral damage that it leaves behinds continues to be a strain on the city in terms of people getting hurt, killed or becoming victims of crimes and/or stretching city resources. I remember shopping in the Meadows area years ago until violence and crime ended make most of the business pack you and leave as did with Lafayette Square and Washington Square. Over the past 10 to 12 years, I remember going to the Indiana Black Expo Soul Picnic in Washington Park. Violence, gang fights and homicides ended that. My great grandmother still bears the scares on her leg from when she was trampled by a group of thugs running from gun fire from a rival gang. With hundreds of police offices downtown still multiple shootings, people getting shot downtown during Black Expo. A number of people getting shots or murdered at black clubs around the city like Club Six on the west side, The Industry downtown, Jamal Tinsley's shot out in front of the Conrad, multiple fights and shootings at the skating rinks, shootings at Circle Center Mall and shooting and robberies and car jackings at Lafayette Mall. Shootings and gang violence and the State Fair. I can go on and on and on. Now Broad Ripple. (Shaking head side to side) Say It Loud, I'm Black and I'm Ashamed.

  5. Ballard Administration. Too funny. This is the least fiscally responsive administration I have ever seen. One thing this article failed to mention, is that the Hoosier State line delivers rail cars to the Amtrak Beech Grove maintenance facility for refurbishment. That's an economic development issue. And the jobs there are high-paying. That alone is worth the City's investment.

ADVERTISEMENT