ANDERSON – The final pieces of the puzzle are falling into place to bring an Italian company that manufactures fertilizer from soy beans to Anderson.
The Anderson Economic Development Commission on Thursday voted to approve the project development with Italpollina, which intends to invest $9.2 million in Anderson and create 35 jobs.
Greg Winkler, executive director of the Anderson Economic Development Department, said the agreement involves three different parties, which is unusual.
The agreement is between the city of Anderson, Italpollina and 2700 Scatterfield Road LLC.
“This wouldn’t happen any other way,” Winkler said. “The incentive money from the city will be used to lower the lease payment.”
2700 Scatterfield Road LLC is purchasing six acres from the Anderson Redevelopment Commission adjacent to the Purdue Polytechnic Institute project.
The company is constructing the 70,000-square-foot facility at an estimated cost of $4.5 million and Italpollina is investing $4.7 million in equipment.
Italpollina is leasing the facility for 10 years with the intention of purchasing it at that time.
The city plans $1,050,000 in economic development bonds which will be provided to 2700 Scatterfield Road LLC for the construction of the facility.
The Anderson City Council was expected to approve an ordinance through two of the three required readings Thursday.
Winkler said Italpollina will be paying $115,000 per year in property taxes and $47,000 in personal property taxes.
He estimated the annual payment on the 10-year bond at $115,000 which means the city will receive a 40 percent return on the investment.
The bonds will be repaid by the Anderson Redevelopment Commission through tax increment financing, where the Italpollina tax revenues will be allocated.
Jim Dietrich of Italpollina said the company has already sold the entire production from a plant in Italy for the soybean-based fertilizer in the United States.
The company hopes to start production in 2017. There are tentative plans to eventually increase the size of the Anderson facility to 300,000 square feet.
The company plans to hire 35 people with an annual payroll of $1.8 million.
The city is not providing Italpollina any tax abatements for the project.