HAMMOND | The city is preparing to issue $11.5 million in bonds to help finance construction of Potash Corp.'s new regional distribution center at Gibson Yard.
The Canadian-based company, which is the world's largest fertilizer producer, is preparing to build a storage facility, designed to hold 130,000 tons of fertilizer, an office complex and locomotive shed on Hump Road off Summer Street.
The Hammond City Council will consider the bond issue at Monday's meeting, City Attorney Kris Kantar said. The $11.5 million in bonds will provide the company the $10 million in incentives the city had promised to secure the new distribution center. The remaining $1.5 million is interest and fees required to issue the bonds.
The bonds will be paid off by tax increment financing.
The Hammond Economic Development Commission approved a resolution on Sept. 10 to issue the bonds and forwarded its recommendation to the City Council.
The project will generate about 225 construction jobs and three permanent full-time jobs and two part-time jobs when finished, according to the resolution.
The five permanent jobs referenced in the resolution will staff the large warehouse facility Potash will build, said Phil Taillon, executive director of the Department of Planning and Development.
Taillon said the project also will generate permanent jobs at a smaller warehouse on site, and the Indiana Harbor Belt Railroad will hire employees to manage the tracks for the facility.
City Councilman Dan Spitale, D-at large, said he supports the development.
“It's going to bring other projects with them,” Spitale said, “and that's already in the works.”
Potash announced in 2011 its plans to locate to Gibson Yard after Hammond beat out Memphis, St. Louis and Detroit for the development.