Lafayette-West Lafayette Offer Incentive Package to Toyota

Local officials say the package includes recruiting assistance, training funds and support for a potential tax abatement.

Source: Inside INdiana Business

Press Release

Lafayette, Ind. – March 13, 2006 – The possibility of adding 1,300 new manufacturing jobs to the county’s workforce rolls and landing a $200 million investment in equipment at the Subaru of Indiana Inc. (SIA) plant prompted local officials to assemble and offer an incentive package valued at nearly $7.6 million.

“The potential economic payback is enormous, affecting every sector of our economy from jobs to housing to retail, service and our quality of life,” said Cinda Kelley, acting executive director of the Lafayette-West Lafayette Economic Development Corp., which assembled the package and worked closely with the automotive companies. “These are jobs we want. This is an investment we want. And we put our heads together to make the best local offer possible.”

City of Lafayette support

The package includes recruiting assistance, training funds, support for a potential tax abatement and reduced electric fees, with offerings from the City of Lafayette, Tippecanoe County government, Indiana Workforce Development and Cinergy/PSI Energy Inc.

Pending application and Lafayette City Council approval, the City of Lafayette is supporting extension of the existing Economic Revitalization Area, where the SIA plant is located, for another 10 years and a 10-year phase-in of new taxes. The projected value of these incentives is $5,751,325. The City has also committed up to $250,000 in training funds.

“This is the kind of news every community wishes it could announce—more jobs, good jobs, the possibility of far-reaching ripples of economic impact,” said Lafayette mayor Tony Roswarski. “We have worked hard to market that ‘Lafayette Means Business,’ and we welcome a relationship with a new corporate partner.”

County funds training

Tippecanoe County is pledging $364,000 from its County Economic Development Income Tax funds, with the money allocated to recruitment, relocation and training.

“The Tippecanoe County Commissioners are thrilled with the news that Toyota will be partnering with SIA to bring additional jobs and manufacturing to our county,” said K.D. Benson, 2005 president of the Tippecanoe County Commissioners. “The proposed increase of up to 1,000 jobs will bring new families to help energize our housing market, boost tax revenue and enrich our community. We welcome them to Tippecanoe County and will do what we can to help them locate here.”

Cinergy/PSI, others provide help

Cinergy/PSI has agreed to reduce SIA’s electric bill on the additional new load by approximately 50 percent for 12 months. That incentive is valued at about $1 million.

“It simply makes sense to encourage these two successful auto makers to choose this community for additional production,” said Bob Hutchings, Cinergy/PSI manager of economic development. “The initial community investment has seen great return. These new incentives show that this community is committed to bringing quality jobs and companies to town.”

The expanded production will likely lead to other new industries, Hutchings said. “The SIA/Toyota expansion will be a foundation for the economic development corporation to build a strategy to bring new investment to Tippecanoe County. Original equipment manufacturers, along with other related companies, will be interested in being close to this new business opportunity."

The local Indiana Workforce Development office and other local entities will provide about $475,300 in assistance for recruiting, assessing and hiring employees.

Immeasurable economic impact

"This is just what our local and state economy needs. What a shot in the arm,” said Gary Henriott, LWL-EDC chairman of the board. “SIA's positive impact on our community is almost immeasurable, and for them to reinvest in manufacturing capacity and job creation is absolutely great news.”

He also suggested that for every job created at SIA, another four or five jobs would be created elsewhere in our community or state.

The recent news comes a little more than 20 years after Lafayette first learned it would be the site for the SIA plant. That announcement came on December 2, 1986, followed by a May 1987, groundbreaking. Production began at the plant in September 1989.

Housing market stands to gain

The news bodes especially well for the local housing market, local Realtors say.

“Any increase in employment will have a wonderful affect in so many parts of our economy, including housing,” said Charles Shook, broker at Coldwell Banker/The Shook Agency. “These are real raise-your-family, pay-your-bills types of jobs. These are career jobs. And this will ultimately lead to more residents in our county, which will have a favorable affect on housing—in stability, value and improved marketing times.”

“Not only do the numbers of the actual new jobs mean a great deal, it’s what that kind of news spurs,” said Lou Johnson, broker/owner at F.C. Tucker/Lafayette Realtors. “It’s the optimism that comes from this and what it offers the community that can mean so much to how people feel about investing in real estate. This is another big plus for our local community, the surrounding counties, and the stability and growth here.”

EDC boosting economy since 1983

Established in 1983, the Lafayette-West Lafayette Economic Development Corp. is a membership-directed organization dedicated solely to enhancing the economic vitality of Lafayette-West Lafayette. Its mission is to build quality of life through public/private partnerships, provide customer-focused services to retain and expand high-impact business, attract quality companies and improve the area’s economic competitiveness. It also hosts four business networking groups and sponsors the Greater Lafayette Venture Club.

Source: Lafayette-West Lafayette Economic Development Corp.