Panel endorses 10-year tax abatements for two C.P. businesses

2014-03-20T21:10:00Z 2014-03-20T21:35:25Z Panel endorses 10-year tax abatements for two C.P. businessesSusan Erler, (219) 662-5336

CROWN POINT | The owner of Nick's Building Supply won a favorable recommendation Thursday for a 10-year tax abatement on a proposed expansion of the business.

Dominic Pitzel plans an approximately 42,000-square-foot building on a 4.6-acre plot just north of Nick's Building Supply, 11100 Broadway, attorney Adam Decker said.

Decker represented Pitzel at a meeting of the city's Human Resources and Economic Development Committee.

Pitzel plans to install new equipment valued at $160,000 in the building for the manufacture of doors, Decker said. Some of the machinery is custom made in Europe for precision manufacture, Decker said.

The building, with estimated construction cost of $1.3 million, is planned  for the western section of the acreage, Decker said.

The expansion is expected to add five employees with salaries totaling $144,000, Decker said.  Nick's Building Supply, a manufacturer of custom wood doors, currently employs 20 with total salaries of $600,000, he said.

The committee agreed to recommend in favor of the 10-year abatement on real and personal property, pending the project's compliance with city ordinances and building and planning regulations and with licensing and permitting fees.

The favorable recommendation for the 10-year tax abatement goes to the City Council.

The committee also recommended in favor of a 10-year abatement on equipment only  for the firm WR Silutions, which is leasing space at 1195 Arrowhead Court.

The firm plans to install $340,000 worth of new equipment at the location for the manufacture of silicone pieces for medical devices, attorney Jim Brown, representing the firm, said.

The firm expects to add 23 new employees by the end of the year, Brown said.

The favorable recommendations go to the City Council for final consideration.

Tax abatement permits a business to pay a portion of its property taxes in increasing increments over a period of time, during which the business must meet expected levels of employment and payroll. It typically is used as an economic development incentive.

Pitzel would like to start construction soon, Decker said.

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