VALPARAISO — A local company that works with national tech giants is approved for a property tax abatement from the city of Valparaiso.
The City Council supported the five-year abatement on what is expected to be a $1.5 million expansion of the ShoreMet facility on 3601 Enterprise Ave.
ShoreMet President Danny Mislenkov wants to expand his company's facility to entice a contract for his business, which recycles copper and makes chemicals for a variety of things including electronic products, manufacturing, animal vitamins, as well as natural gas processing. The business has operated out of Valparaiso since 1997.
“Demands are growing so we're looking to service (this demand),” he said. “We have a customer looking for us to expand our capabilities for them, and thus we were looking to expand our business with more real estate.”
Mislenkov said the expansion would also provide four new jobs increasing its team to 29 employees. The 30,000-square-foot addition would go on 2.5 acres of land already owned by the company and would include additional offices, loading docks and a warehouse.
The abatement would last for five years and start at 100% on the added value from the development going down in increments of 20% each year. It would start in 2021 after work finishes in 2020.
“If a tax abatement is approved, it does not negatively impact the city's budget. It's not like we're losing money because of the abatement,” Economic Director Patrick Lyp said. “After that five-year period, 100% of those taxes will be paid to the city.”
Some of the companies ShoreMet works with are Apple and DuPont, according to Mislenkov. Lyp said this encourages big businesses to get acquainted with Valparaiso.
“In addition to the investment to our community, one of the things I often try to do is get businesses to come to our community and see our community … actually get folks to walk down our Lincolnway or eat at one of our restaurants,” Lyp said. “One of the collateral benefits of (Mislenkov's) proposal is a lot of these businesses come out here and do audits.”