HUNTINGBURG — With the approval of a tax abatement for Indiana Municipal Power Agency at Tuesday evening’s meeting of the Huntingburg Common Council, the proposed solar park coming to West Phoenix Drive on the city’s north side is 100 percent official.
The five-year abatement will allow IMPA, a nonprofit wholesale electric power provider serving 59 cities and towns in Indiana, to build its 11-acre solar park tax free. As a nonprofit, IMPA does not technically pay property taxes; however IMPA would typically be expected to give payment in lieu of taxes on the equipment at the site. That’s where the abatement comes into play. To remain eligible for the abatement, IMPA must show benefits brought to the city from the development of the solar park over the course of the abatement. The abatement will forgive 100 percent of taxes in the first two years, 75 percent in the third year, 50 percent in the fourth year and 25 percent in the fifth year.
The abatement was reviewed by the city’s economic development commission as it related to the city’s tax abatement plan — approved in 2013 and almost identical to the abatement plans in the City of Jasper and Town of Ferdinand — and was recommended to the council based on IMPA’s qualifications.
The public hearing lasted about five minutes and comprised of discussion only by the council. No public comment was submitted.
Councilman Kerry Blessinger mentioned that he received a comment from a citizen asking why the city would give an abatement to an organization that is not producing jobs within the city.
“Job creation is a factor involved in the abatement process, but it is not the only criteria involved,” Mayor Denny Spinner said. “If an application comes in that does have job creation in it, it would probably receive a higher score and therefore be eligible for up to 10 years of abatement under our abatement plan.”
City Attorney Phil Schneider mentioned IMPA’s proposed investment in new manufacturing equipment at the Phoenix Drive site is expected to be $2,896,000 that could be subject to abatement — a significant amount of money to be invested in sustainable energy within Huntingburg’s corporate limits — as well as $800,000 invested in the site that is not eligible for abatement. This means there will be non-abateable assets of roughly $4,600 per year that the city will be able to tax even during the abatement period, according to Schneider.
“There is going to be an increased assessed valuation that (the city) will realize taxes on in 2017 and moving forward,” Schneider said.
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