HOBART | The owner of a Michigan-based refrigeration company warmly thanked the City Council on Wednesday after receiving approval for an $11 million expansion.
"The city of Hobart stepped up and brought us a package that included incentives, and I appreciate it. We're a good company," Hanson Logistics owner Greg Hanson said.
The City Council on Wednesday approved a tax abatement request extension for Hanson Logistics, which is at 2201 Northwind Parkway in the Northwind Crossings Business Park.
There are currently two Hanson Logistics plants in Hobart, including a 135,000-square-foot building constructed in 2007 and a 60,000-square-foot building constructed in 2010.
The newly approved building will be 90,000 square feet, Hanson said.
"We're going to get at it. ... Northwind has been a great spot," Hanson said.
Hanson said officials plan to begin construction on the new building as early as next week.
Cost of the project is $9 million for the building construction and an additional $2 million for equipment.
Andrew Janson, president of Hanson Logistics, said his company looked at two other possible locations for the expansion.
A hurdle to moving forward in Hobart had been that the city developed stormwater retention areas when the first two buildings were constructed. This time Hanson Logistics will be responsible for that development, he said.
The city and company were able to work around the issue because Hobart officials offered to extend an existing five-year tax abatement on the property by an additional year.
The third building, which Hanson officials said they'd like to have open for business by September, would house an additional 10 to 12 employees.
In other business, the City Council approved a three-year agreement with New Chicago to provide ambulance services.
Under the agreement, New Chicago officials will pay Hobart $26,523 this year, $27,319 in 2014 and $28,139 in 2015.