The La Porte City Council voted unanimously yesterday in favor of approving a resolution to use enterprise zone investment credits within a Tax Increment Financing District in a deal with local company American Renolit, a manufacturer of high-quality plastic films for the graphics, label, furniture and window profile industries.
The resolution would allow for American Renolit to receive up to $275,000 in conditional tax credits from the Indiana Economic Development Corporation, in addition to additional incentives offered through the Greater La Porte Economic Development Corporation. The agreement specifies that these credits are performance-based, meaning that until Hoosiers are hired, the company will not be able to claim the credits.
In exchange, American Renolit announced plans to invest $25 million into its 220,000 square-foot La Porte, Indiana plant, adding an additional production line and creating an estimated 30 new jobs for local residents. The company states that the expansion will allow it to keep up with growth of the company’s existing customers and to develop adjacent markets and new applications. The expansion is set to begin later this year and is expected to be completed by the end of 2018. The plant currently employs 175 workers.
Bert Cook, Executive Director of the Greater La Porte Economic Development Corporation and Vice President of Urban Enterprise Association says that this is a definite win for the area, and demonstrates the importance of renewing the Urban Enterprise Zone until 2022.
“We have another project layered on top of this, and that is the extension of the life of our Enterprise Zone, which will ultimately be decided by the Indiana Economic Development Corporation,” said Cook. “Projects like this one would not be possible without that program. The existence of the Enterprise Zone is a huge advantage to the City of La Porte. Monday’s vote by the council is a vote not only to support American Renolit, but to support the greater interests of the city. This is a perfect example of how both levels of government - state and local - can work together to stimulate economic growth in our communities.”
Cook describes an urban enterprise zone as a geographic area that is designed to create investment of re-investment in struggling areas.
“If your area is struggling economically, the zones enable programs that encourage companies to invest in those areas,” said Cook.
The La Porte Urban Enterprise Zone was originally designated in 2002. It was reauthorized in 2012 and is currently seeking its third and final renewal, which will allow it to operate until 2022. The Zone covers roughly 3.2 square miles in the city, an area which represents about 6,300 residents or 28 percent of the total population of the city. Renewal is critical, since state incentives associated with the Zone continue to play a role in development and redevelopment of the Zone, as evidenced in the recent Renolit agreement.
State Representative Jim Pressel was present at the council meeting and sees a bright future for the area
“I’m excited to see this expansion and economic development happen here in La Porte and to see the results of our partnership with American Renolit as well as with the City of La Porte and the Urban Enterprise Association,” Pressel said. “What we did here today is partner with a German-owned company, really shored them up, giving them the opportunity to increase their capacity and bring 30 more good-paying jobs to the area. This is a picture-perfect example of the good things that urban enterprise zones can do. It’s a great example of what these groups are doing with the resources they have been given, using those resources to bring jobs to the City of La Porte. We’re working hard to get that Zone extended, so that we continue to have access to that funding to bring about more things like this in the future.”
“What we did here today, this would not have been possible without this program,” he added Monday night.
Renaat Demeulemeester, President of American Renolit Corporation spoke after the council’s unanimous decision in favor of the resolution.
“I’m proud, proud to be the president of American Renolit, proud of our employees who have worked hard to make the company what it is today. They have earned the confidence of our board members in our home office in Germany. Their hard work gave the board confidence to make this investment. If it were not also for the employees, this project would not have happened,” said Demeulemeester.
Nils Dietz, Chief Financial Officer for American Renolit Corporation reiterated the company’s commitment to the city and citizens of La Porte.
“We are committed to stay here in this community and we are very glad to strengthen our position here in La Porte. We are here for the long-term.”
“The tax savings that these companies receive from the investment reduction is re-directed back into the development Zone,” said Mike Riehle, President of Urban Enterprise Association. “That money has been critical to the city in terms of projects, which otherwise they would not be able to afford - downtown building renovations, facade improvements, painting… 80 percent of the money for that comes from our Zone, which will ultimately help our downtown look better. All this money is returned to the Zone, so everyone who lives in the Zone benefits.”
Over the last five years, the combination of LPUEA and Zone-related tax incentives has had a significant impact on the Zone, particularly in areas of investment and job creation, with total new investments estimated to be more than $150 million. These investments have created more than 380 new jobs for local residents and has made possible several projects, including $122,326 towards the cost to rehab nine downtown buildings, $120,000 for sidewalk improvements, $40,476 for park improvements and several other local community improvement projects. Renewal of the Zone will allow the agency to continue its efforts and to take steps to become self-sustaining after the Zone expires.
For more information, contact the GLEDC at http://www.gledc.com/
