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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. Cramer agrees...says don't buy it and sell it if you own it! Their "pay to play" cost is this issue. As long as they charge customers, they never will attain the critical mass needed to be a successful on company...Jim Cramer quote.

    2. My responses to some of the comments would include the following: 1. Our offer which included the forgiveness of debt (this is an immediate forgiveness and is not "spread over many years")represents debt that due to a reduction of interest rates in the economy arguably represents consideration together with the cash component of our offer that exceeds the $2.1 million apparently offered by another party. 2. The previous $2.1 million cash offer that was turned down by the CRC would have netted the CRC substantially less than $2.1 million. As a result even in hindsight the CRC was wise in turning down that offer. 3. With regard to "concerned Carmelite's" discussion of the previous financing Pedcor gave up $16.5 million in City debt in addition to the conveyance of the garage (appraised at $13 million)in exchange for the $22.5 million cash and debt obligations. The local media never discussed the $16.5 million in debt that we gave up which would show that we gave $29.5 million in value for the $23.5 million. 4.Pedcor would have been much happier if Brian was still operating his Deli and only made this offer as we believe that we can redevelop the building into something that will be better for the City and City Center where both Pedcor the citizens of Carmel have a large investment. Bruce Cordingley, President, Pedcor

    3. I've been looking for news on Corner Bakery, too, but there doesn't seem to be any info out there. I prefer them over Panera and Paradise so can't wait to see where they'll be!

    4. WGN actually is two channels: 1. WGN Chicago, seen only in Chicago (and parts of Canada) - this station is one of the flagship CW affiliates. 2. WGN America - a nationwide cable channel that doesn't carry any CW programming, and doesn't have local affiliates. (In addition, as WGN is owned by Tribune, just like WTTV, WTTK, and WXIN, I can't imagine they would do anything to help WISH.) In Indianapolis, CW programming is already seen on WTTV 4 and WTTK 29, and when CBS takes over those stations' main channels, the CW will move to a sub channel, such as 4.2 or 4.3 and 29.2 or 29.3. TBS is only a cable channel these days and does not affiliate with local stations. WISH could move the MyNetwork affiliation from WNDY 23 to WISH 8, but I am beginning to think they may prefer to put together their own lineup of syndicated programming instead. While much of it would be "reruns" from broadcast or cable, that's pretty much what the MyNetwork does these days anyway. So since WISH has the choice, they may want to customize their lineup by choosing programs that they feel will garner better ratings in this market.

    5. The Pedcor debt is from the CRC paying ~$23M for the Pedcor's parking garage at City Center that is apprased at $13M. Why did we pay over the top money for a private businesses parking? What did we get out of it? Pedcor got free parking for their apartment and business tenants. Pedcor now gets another building for free that taxpayers have ~$3M tied up in. This is NOT a win win for taxpayers. It is just a win for Pedcor who contributes heavily to the Friends of Jim Brainard. The campaign reports are on the Hamilton County website. http://www2.hamiltoncounty.in.gov/publicdocs/Campaign%20Finance%20Images/defaultfiles.asp?ARG1=Campaign Finance Images&ARG2=/Brainard, Jim

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