MUNSTER | Offering incentives for businesses to move into the Lake Business Center continues to be part of the economic development plan for the town, officials said.
The Munster Redevelopment Commission recently adopted a resolution of intent to offer a $615,000 grant aimed at enticing Tec Air Inc. to the Lake Business Center from Willow Springs, Ill.
The money will be used to make permanent and unique electrical and cooling improvements at the center to accommodate this niche manufacturing company, said Clay Johnson, Munster assistant town manager.
Tax increment financing funds will be used for this inducement because the Lake Business Center is in Munster’s TIF district.
Tec Air produces air filtration systems for engines. Each system is custom-ordered, produced and shipped from the facility upon completion with no warehousing at the site, Johnson said.
Among the company’s clients are Ford, GM and John Deere, he said.
“The Redevelopment Commission will reimburse Tec Air for the permanent improvements to the building,” Johnson said. “Tec Air will submit related construction invoices, partial waivers of lien and proof of payment to the town manager’s office to process this reimbursement.”
Tec Air Inc. President Robert J. McMurty said in a letter to Johnson dated July 8 that the company would relocate its corporate headquarters, manufacturing facility and R&D center to Munster if the town granted the incentive.
McMurty recently finalized that deal to lease 128,000 square feet in the business park, according to Mitch Simborg, president of Simborg Development.
Tec Air plans to employ up to 200 workers at the Munster facility, Simborg said.
Simborg bought the old Simmons Mattress Plant and has been developing the 72-acre site fronting Calumet Avenue in a $60 million renovation since 2011. The center features 1 million square feet of manufacturing, warehouse and distribution space and a 95,000-square foot office building.
In 2011, the town of Munster sold more than $19 million in 20-year economic development bonds to help finance redevelopment and additions to the Lake Business Center.
The 20-year bonds' principal and interest is being repaid using only Munster tax increment financing revenue. No residential property taxes will be used to repay the bonds.