ANDERSON — The Anderson Redevelopment Commission has approved a five-year option for Italian company Italpollina to purchase additional property for future expansion.
The Anderson Redevelopment Commission (ARC) approved the five-year option to purchase agreement on Tuesday. Originally the option to purchase would have run for 15 years.
ARC members were not comfortable with the 15-year option and requested a shorter term be negotiated with the company.
The option to purchase is on an additional 10 acres to the west of the facility currently under construction.
Italpollina is planning to start production in 2017 of a soybean-based fertilizer in Anderson.
Italpollina and developers 2700 Scatterfield Road LLC obtained the option on property to the north of the planned manufacturing facility.
2700 Scatterfield Road LLC has already purchased six acres from the Redevelopment Commission adjacent to the Purdue Polytechnic Anderson.
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.
The city plans $1,050,000 in economic development bonds, which will be provided to 2700 Scatterfield Road LLC for the construction.
Italpollina is leasing the facility for 10 years with the intention of purchasing it at that time.
The company plans to hire 35 people with an annual payroll of $1.8 million, with production starting in 2017.
Italpollina will pay $160,000 in taxes for the next 10 years, which will go into the commission's tax increment financing account.