Local machining firm seeks tax break for $8.5M expansion

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Aerodyn Engineering Inc. plans to spend $8.5 million to expand its headquarters and add 20 employees by the end of 2019, according to a tax abatement request filed with the Department of Metropolitan Development.

The Indianapolis-based machining and technology firm said it will spend $1.5 million to add 15,000 square feet to its existing 45,000-square-foot building at 1919 South Girls School Road, making room for an expanded instrumentation lab and additional machining space with an overhead crane system.

Aerodyn, founded in 2002, said it would invest another $7 million to equip the new space with tooling and production equipment.

The expansion would help it retain 68 workers making an average hourly wage of $28 and add 20 workers making about $20 per hour, Aerodyn said.

The company is seeking seven-year tax abatements from the city on both the real estate and equipment investments.

The DMD estimates the company would save $125,685, or 57 percent, on its real property taxes over the seven years while paying an estimated $94,815 on the improvements. That’s on top of $30,630 currently being paid in annual taxes on the property.

After the abatement, the company will pay an estimated $31,500 in real property taxes in addition to the $30,630 currently being paid.

The personal property tax abatement is expected to save the company almost $339,066, or 62.1 percent. The company would still pay $206,934 million in personal property taxes on the new equipment during that period plus an estimated $63,000 annually after the abatement ends.

The city’s Metropolitan Development Commission is set to hear Aerodyn’s request for tax incentives Wednesday. Final approval could come July 15.
 

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