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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. to mention the rest of Molly's experience- she served as Communications Director for the Indianapolis Department of Public Works and also did communications for the state. She's incredibly qualified for this role and has a real love for Indianapolis and Indiana. Best of luck to her!

    2. Shall we not demand the same scrutiny for law schools, med schools, heaven forbid, business schools, etc.? How many law school grads are servers? How many business start ups fail and how many business grads get low paying jobs because there are so few high paying positions available? Why does our legislature continue to demean public schools and give taxpayer dollars to charters and private schools, ($171 million last year), rather than investing in our community schools? We are on a course of disaster regarding our public school attitudes unless we change our thinking in a short time.

    3. I agree with the other reader's comment about the chunky tomato soup. I found myself wanting a breadstick to dip into it. It tasted more like a marinara sauce; I couldn't eat it as a soup. In general, I liked the place... but doubt that I'll frequent it once the novelty wears off.

    4. The Indiana toll road used to have some of the cleanest bathrooms you could find on the road. After the lease they went downhill quickly. While not the grossest you'll see, they hover a bit below average. Am not sure if this is indicative of the entire deal or merely a portion of it. But the goals of anyone taking over the lease will always be at odds. The fewer repairs they make, the more money they earn since they have a virtual monopoly on travel from Cleveland to Chicago. So they only comply to satisfy the rules. It's hard to hand public works over to private enterprise. The incentives are misaligned. In true competition, you'd have multiple roads, each build by different companies motivated to make theirs more attractive. Working to attract customers is very different than working to maximize profit on people who have no choice but to choose your road. Of course, we all know two roads would be even more ridiculous.

    5. The State is in a perfect position. The consortium overpaid for leasing the toll road. Good for the State. The money they paid is being used across the State to upgrade roads and bridges and employ people at at time most of the country is scrambling to fund basic repairs. Good for the State. Indiana taxpayers are no longer subsidizing the toll roads to the tune of millions a year as we had for the last 20 years because the legislature did not have the guts to raise tolls. Good for the State. If the consortium fails, they either find another operator, acceptable to the State, to buy them out or the road gets turned back over to the State and we keep the Billions. Good for the State. Pat Bauer is no longer the Majority or Minority Leader of the House. Good for the State. Anyway you look at this, the State received billions of dollars for an assett the taxpayers were subsidizing, the State does not have to pay to maintain the road for 70 years. I am having trouble seeing the downside.

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