MUNSTER | In mid-December, the town will sell more than $2.45 million in economic development revenue bonds to provide a $2 million incentive to Land O’Frost for relocating its corporate headquarters from Lansing.
The incentive was offered by the town of Munster for land acquisition and construction of Land O’Frost’s corporate headquarters, said Clay Johnson, assistant town manager.
Of the total raised by the bond sale, $450,000 will be used to pay the costs of issuing the bonds as well as debt service, Johnson said.
The authorization to issue the EDC bonds and provide $2 million for the lunch meat manufacturer came after a series of meetings by three municipal agencies Monday.
First the Munster Redevelopment Commission met to adopt a resolution pledging revenues from the tax increment financing district to support the EDC bonds and providing 200 percent coverage or guarantee for those bonds.
The Redevelopment Commission resolution also declared that the bond revenues will be used for the purposes of economic development within the town’s Economic Development Area that includes the west side of Calumet north of Main Street.
Immediately following that special meeting, the Munster Economic Development Commission held a public hearing to adopt the project report about the number of jobs the Land O’Frost move will create. According to the project report, the move will shift 50 jobs to the town. The public hearing drew no remonstrators, and the EDC voted to accept the project report.
Those actions allowed the Town Council to authorize issuing the bonds to benefit the relocation of Land O’Frost. The ordinance was adopted on first reading, contingent upon a final legal review by Town Attorney Eugene Feingold.
The bond sale will be negotiated by Ice Miller on Dec. 12.
Land O'Frost officials broke ground Oct. 2 at 630 Hagburg Drive on a new $6.4 million corporate headquarters.
The 27,000-square-foot building in the Munster tax increment financing district will feature a pilot plant and a high-tech test kitchen, allowing the company to develop new products and recipes faster and more efficiently, said David Van Eekeren, the company's president and CEO. The building also will feature a sustainable design in hope of becoming LEED certified.
The new headquarters is expected to open in fall 2014.