Alexandria Extrusion MidAmerica LLC is planning an $8.5 million expansion at the aging Indianapolis plant it bought in 2012, helping it create 30 jobs and retain 60 workers.
The Department of Metropolitan Development disclosed the plans this week in a tax-abatement request that will be heard by the Metropolitan Development Commission on Wednesday.
Alexandria Extrusion is a subsidiary of Minnesota-based Alexandria Industries, which acquired the local aluminum extrusion plant at 4925 Aluminum Drive, near Massachusetts Avenue and East 30th Street, three years ago. The 68,500-square-foot plant has operated since 1955 under different owners, including National Aluminum Corp.
The plant designs and produces aluminum objects used by the signage, solar, recreational and medical industries.
Alexandria Extrusion said it plans to spend $1.5 million on real estate improvements and $7 million on new manufacturing equipment.
The company said the project would help it retain 60 employees making an average wage of $21.50 per hour while adding another 30 workers at an average wage of $23.60 an hour by 2018.
DMD staff is recommending the company receive a seven-year abatement that would save it an estimated $330,000, or 62 percent, on its personal property taxes over the abatement term. The business would still pay an expected $201,500 in personal property taxes on the new equipment during the seven years.
After the abatement period, Alexandria Extrusion would pay an estimated $61,300 annually in personal property taxes related to the new equipment.
Additionally, the company also is requesting a seven-year abatement of its real property taxes that would save it an estimated $122,000, or 57 percent, over the abatement period. It would still pay about $92,000 in real estate improvements during the period in addition to the $38,000 it is already paying annually on the property.
After the abatement period, Alexandria Extrusion is expected to pay a total of $69,000 annually in real property taxes.
The MDC could give preliminary approval to the tax breaks on Wednesday and final approval on Nov. 18.