Published: October 18, 2007 10:43 pm         

Pfizer's $4.3M of incentive money still in Vigo hands

County Council approved $4.52M TIF bond near Pfizer plant earlier this year

TERRE HAUTE — Several million dollars in incentives for Pfizer are up in the air after the company announced it is halting the production of Exubera in its Terre Haute plant.

Earlier this year, the Vigo County Council approved a $4.52 million tax increment finance, or TIF, bond to pay for infrastructure repairs and upgrades, including new intersections along Carlisle Road. But on Thursday, Pfizer officials announced the discontinuation of production of Exubera, the inhaled-insulin diabetes drug,

County leaders likely will meet with Pfizer officials to discuss the company’s future in the area before determining plans, said Steve Witt, president of the Terre Haute Economic Development Corp.

“We haven’t spent any of the money with the exception of the bond issuance expense, and a small sum on engineering thus far because we had to perform a traffic study as part of the project,” Witt said Thursday morning.

Officials still have $4.3 million of the bond, he said. Witt added they also want to meet with bond and financial advisers to discuss future options with the funds.

The county’s Economic Development Income Tax funds served as backup to secure the 15-year bond through 2021. Some EDIT revenue also was used to create an account to help pay off the initial payments, since Pfizer also received tax abatements for the project.

The total debt on the bond issue would be $7.4 million over 15 years, which includes $2.9 million in interest.

Pfizer spokesman Rick Chambers said that officials have not made any decisions regarding the future of the site other than the announcement regarding Exubera.

“We will begin the process of looking at all our options and making a decision as soon as possible,” he said.

Witt said that Terre Haute did not commit any tax incentives or funds to Pfizer.

Some previously committed state money already has been lost by Pfizer for the expansion. State officials in early 2006 had committed up to $8.5 million in tax credits and up to $450,000 in training grants for Pfizer’s expansion of its Terre Haute plant, said Mitch Frazier, spokesman for the Indiana Economic Development Corp.

Yet the company has yet to apply for any of the funding, Frazier said. He added that the incentives are performance-based, and Pfizer has lost the funds committed based upon its estimated job creation figures for 2006 since the corporation did not apply before the end of the year.

The company also has not yet applied for the 2007 credits, Frazier said.

Pfizer has not applied “because those grants and incentives are relatively new,” Chambers said Thursday, “and we had not reached the point to where we were ready to take advantage of them.”

Frazier said that it’s difficult to hear of a product not selling as well as the manufacturer anticipated, such as the case with Pfizer and Exubera.

“But given Pfizer’s past performance … certainly we’re looking for good things to come for Pfizer and the life sciences community throughout Indiana,” Frazier said.

Brad Rateike, spokesman for Gov. Mitch Daniels, referred the Tribune-Star to Frazier.

Chambers said that he informed several local officials, including Terre Haute Mayor Kevin Burke, Vigo County Commissioners, and other state and national leaders, about the decision to halt production.

City Councilman Cliff Lambert, D-at large, who also is executive director of Terre Haute’s Department of Redevelopment, said he would support a council resolution supporting Pfizer and recognizing the company’s “very positive economic benefits that have been generated in our community” with jobs at a good level of compensation.

“So it’s early to conjecture what the ultimate outcome will be,” Lambert said of the situation, “but I can only say that I feel that it will be a great many organizations and individuals in lockstep behind what support can be given to the Pfizer organization at this point.”

County Council President Darrick Scott, D-2nd, said Thursday morning that county authorities likely would meet with Witt and Pfizer officials to determine the course of action.

“ … We’ll keep up the team effort,” Scott said, “and we’ll look into what we need to do.”

Austin Arceo can be reached at (812) 231-4214 or austin.arceo@tribstar.com.

     

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