By Howard Greninger
The Tribune-Star
TERRE HAUTE
January 23, 2007 10:12 pm
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The Vigo County Redevelopment Commission took the first step in providing its incentive package for the construction of an inhaled-insulin manufacturing facility for Pfizer Inc.
Pfizer is investing $174 million in its Exubera facility and the creation of about 450 new full-time jobs at hourly wages in excess of $16 per hour, excluding overtime and benefits. The company in March announced it will develop the facility in Terre Haute and already has developed a large portion of the project, including hiring workers for production lines.
The commission unanimously approved a declaratory resolution to create a tax increment finance district for an approximately 900-acre site at Pfizer. A TIF district allows taxes collected from the district to be used for improvements in the district, instead of being distributed countywide.
The TIF funds will be used to obtain a more than $9 million bond to fund road and water improvements for Pfizer. The 20-year bond will provide about $5.4 million for the county to use for that work.
The difference includes various bond fees and costs, plus about a 25 percent cushion used to create a fund that can pay for a year of bond payments should the TIF district not generate enough funds to repay the bonds, said Gary Malone of H.J. Umbaugh & Associates, an Indianapolis accounting firm. It also includes making payments to bond holders while Pfizer completes construction of its Exubera facility, Malone said.
In addition, the bond will have to be backed by the county, likely from the County Economic Development Income Tax. The project, through the creation of jobs, will likely add to the county’s income tax revenue, Malone said.
An impact study, which would include income tax revenue, will be included as part of the bond preparation, he said.
The resolution next goes to the Vigo County Area Plan Commission, then the Board of Commissioners for approval. The issue would then return to the Redevelopment Commission for a public hearing and final approval.
Steve Witt, president of the Terre Haute Economic Development Corp., said the exact amount of the bond will not be known until an engineering study from the Corradino Group is completed. Witt said work to benefit Pfizer likely will include improving the intersection of Harlan and Carlisle roads and the roads themselves; and the intersection of Dallas and Carlisle roads.
It also includes providing a water supply to Pfizer by extending a water line from Dallas Road south along Carlisle Road to Harlan Road, and a second line west of Carlisle Road along Dallas Road.
“The primary reason for that is Pfizer used to own its own water well field and treatment facility, but that is now owned by Danisco Sweeteners, so Pfizer will need some municipal water service,” Witt said.
“Part of the reason that Pfizer considered Terre Haute for [the Exubera facility], was the offer of certain incentives, both state and local. The local level was property tax abatement as well as tax increment finance assistance,” Witt said.
Witt said incentives from the state of Indiana include about $8.3 million in tax credits from two separate state incentive programs and $400,000 in job training assistance for Pfizer.
Richard Jenkins, a member of the Redevelopment Commission, said that while there is risk involved in backing a bond issue from the TIF district, the money to be spent will be used on road improvements, something that will benefit the southern part of the county.
Howard Greninger can be reached at (812) 231-4204 or howard.greninger@tribstar.com.
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