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Sun King brewery lands tax breaks for expansion

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Sun King Brewing Co. is preparing for another round of growth and has landed city and state incentives to help offset the investment.

According to to a tax-incentives deal approved Wednesday afternoon by the Indianapolis Metropolitan Development Commission, the downtown Indianapolis brewery on North College Avenue said it is prepared to spend $2.1 million on additional brewing, logistics and information-technology equipment, which will allow it to add 20 employees by 2016.

The new jobs would pay an average of $17.10 an hour, slightly more than the $16.91 average wage paid to the 35 existing employees who would be retained through the abatement, according to city documents.

Sun King’s investment initially should increase the assessed value of its property by $840,000, the city said. The brewery is expected to save $97,020 in personal property taxes during the abatement period and pay $10,080. The brewery would pay an estimated $19,769 in personal property taxes annually after the abatement expires.

In a separate deal reached with the state and announced Wednesday, Sun King said it planned to spend $3.9 million to add 1,850 square feet to its existing 2,700- square-foot facility. The brewery will house 240 barrel fermentation tanks to allow for an increase in beer production.

Sun King told the state that the expansion would help it increase employment by 32 workers by 2016.

The Indiana Economic Development Corp. offered Sun King up to $240,000 in conditional tax credits and up to $60,000 in training grants based on the job-creation plans.

Sun King was launched in mid-2009 and produced 5,000 barrels of beer in its first year of operation. It doubled that amount in 2011 and brewed 18,000 barrels last year.

Sun King is the second-largest brewer in Indiana, behind only Three Floyds Brewing Co. in Munster, which produces about 23,000 barrels annually and also is growing quickly.
 

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  • No Way
    And the poor folks in the Avondale area get NOTHING. Wow - way to go MDC.
  • Give it to them!
    Great company, great beer, Sun King will generate 20 jobs +, and likely more in the service industry. Yes to the abatement please.
  • Abatements are conditional
    Patti, the city isn't giving Sun King $97K. An abatement is a reduction, not a gift. In addition, abatements are conditional. If the company doesn't meet the conditions, it will be required to pay the taxes.
  • Help Sun King grow
    Yes to the abatement, because this growth will result in much more than just 20 jobs. Sun King has a national reputation that reflects well on Indianapolis. Out-of-towners come to Indianapolis to visit Sun King (and our city's other fine microbreweries), and they spend additional money on food and lodging while they're here. Sun King is a terrific community partner to many Central Indiana organizations. And they're doing all this from a set of buildings that would otherwise have stood empty.
  • Tax Abatement
    So, let me get this straight....We give them $97K and MAYBE 20 people will get jobs in two years. And what penalty will be assessed if the jobs don't materialize? NO to the abatement.

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    1. I am not by any means judging whether this is a good or bad project. It's pretty simple, the developers are not showing a hardship or need for this economic incentive. It is a vacant field, the easiest for development, and the developer already has the money to invest $26 million for construction. If they can afford that, they can afford to pay property taxes just like the rest of the residents do. As well, an average of $15/hour is an absolute joke in terms of economic development. Get in high paying jobs and maybe there's a different story. But that's the problem with this ask, it is speculative and users are just not known.

    2. Shouldn't this be a museum

    3. I don't have a problem with higher taxes, since it is obvious that our city is not adequately funded. And Ballard doesn't want to admit it, but he has increased taxes indirectly by 1) selling assets and spending the money, 2) letting now private entities increase user fees which were previously capped, 3) by spending reserves, and 4) by heavy dependence on TIFs. At the end, these are all indirect tax increases since someone will eventually have to pay for them. It's mathematics. You put property tax caps ("tax cut"), but you don't cut expenditures (justifiably so), so you increase taxes indirectly.

    4. Marijuana is the safest natural drug grown. Addiction is never physical. Marijuana health benefits are far more reaching then synthesized drugs. Abbott, Lilly, and the thousands of others create poisons and label them as medication. There is no current manufactured drug on the market that does not pose immediate and long term threat to the human anatomy. Certainly the potency of marijuana has increased by hybrids and growing techniques. However, Alcohol has been proven to destroy more families, relationships, cause more deaths and injuries in addition to the damage done to the body. Many confrontations such as domestic violence and other crimes can be attributed to alcohol. The criminal activities and injustices that surround marijuana exists because it is illegal in much of the world. If legalized throughout the world you would see a dramatic decrease in such activities and a savings to many countries for legal prosecutions, incarceration etc in regards to marijuana. It indeed can create wealth for the government by collecting taxes, creating jobs, etc.... I personally do not partake. I do hope it is legalized throughout the world.

    5. Build the resevoir. If built this will provide jobs and a reason to visit Anderson. The city needs to do something to differentiate itself from other cities in the area. Kudos to people with vision that are backing this project.

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