CROMWELL — The town of Cromwell will grant a five-year tax abatement to Egg Innovations for a planned $3.4 million expansion, and it will move forward in establishing a tax increment financing district to help fund related infrastructure improvements.
At a special meeting Wednesday, Town Council members Lavina Alderfer and Robert Warren voted in favor of the tax abatement and TIF district, bringing to a close discussions with Egg Innovations about its project that had lasted several weeks.
“We’re happy that you’re going to do this,” Alderfer told Egg Innovations General Manager John Hornbostel by phone after the vote.
“You guys should feel very proud of yourselves,” Town Marshal Mike Hatfield told council members. “You’re doing a very good thing for the town, I think.” Hatfield sits on the board of the Noble County Economic Development Corp. and has been involved in assisting Egg Innovations with its project.
Warsaw-based Egg Innovations will expand its Cromwell feed-mill operations and expects to hire three additional workers, according to a Noble County EDC document. The company, which produces free-range eggs under the Egg Innovations and Blue Sky brands, had also considered expanding in Pierceton.
The abatement is for real and personal property, with the amount of property abated stepped down over five years.
In addition, Cromwell will begin the process of creating a TIF district that would include Egg Innovations’ property within town limits, the town’s industrial park, the town’s community center and the downtown area.
“We want to include as much as we can,” Warren said of the TIF district.
Revenue generated by the TIF district would be used to finance improvements to the Egg Innovations site and potentially other areas of town. Egg Innovations has identified extending Olive Street to its site in Cromwell as a high-priority project.
The town will need to form a redevelopment commission to oversee the TIF district. If the district is finalized this year, the soonest it could begin generating revenue is 2017.
As part of their vote, council members also agreed to consider future five-year tax abatements for additional investments made at the Egg Innovations feed-mill and grain-elevator complex, and to fast-track permitting for the expansion project.