Photo provided An artist’s rendition of a proposed food and beverage facility proposed to be located in Edinburgh near I-65.
Photo provided An artist’s rendition of a proposed food and beverage facility proposed to be located in Edinburgh near I-65.
Although tax abatements were approved nearly two months ago, there are still hurdles for Bartholomew County government to conquer before King’s Hawaiian gives their final commitment to invest $180 million in a new German Township facility.
The tax incentives approved in early September are for the development of 88 acres that the California-based bakery intends to purchase off County Road 200W, just east of Indiana Premium Outlets near Edinburgh.
However, the remaining challenges have to do with installing or improving off-site infrastructure such as road improvements, water and sewage.
“(Off-site development) is not something that King’s Hawaiian should be responsible for,” Bartholomew County Commissioners Chairman Tony London said.
The investment is expected to create 147 new jobs with an average wage of $29.94 per hour after the facility is built and becomes operational. King’s Hawaiian executive Joe Leonardo said his company intentionally acquired enough land so they might expand the footprint of the plant or bring another brand to the area.
With several non-related developments underway or expected nearby, the off-site infrastructure improvements must be substantially sized to handle the high demand, London said.
Greater Columbus Economic Development Corp. president Jason Hester said it makes economic sense to create substantial infrastructure capable of handling multiple companies and developments.
“If there is a road improvement or water or sewer (for another project), it’s better to dig once rather than to dig twice,” Hester said.
One of the major concerns is ensuring that the facility can get sufficient water pressure, county officials said. London said that county officials will meet at least twice with Eastern Bartholomew Water Corp. officials to discuss how to best address that challenge.
Since proposed offsite infrastructure is expected to be larger and more expensive than county government and Eastern Bartholomew Water have handled in the past, all parties are moving with caution, London said.
“We’re all just trying to make sure we don’t make any mistakes as we move into uncharted territory,” he said.
Hester emphasized that King’s Hawaiian isn’t asking for any unusual,
”The company simply needs to confirm the site can support their needs,” Hester said. “We just want to make sure we understand clearly what all of the offsite improvements might be, and identify how we go about addressing those needs.”
County officials have been putting in a lot of time and effort to address the offsite infrastructure issues, County Commissioner Larry Kleinhenz said. He and London feel it’s worth it.
“I’m really having a hard time finding a downside to anything we’re doing there,” London said. “The cool thing is, no matter what we do up there, (infrastructure improvement) is going to benefit everybody in the area.”
For example, it would benefit the acreage north of Bear Lane and Hubler Drive that was recently rezoned for light industrial use, Kleinhenz said.
“That property will become so much more valuable once King’s Hawaiian goes into the land just north of the rezoned property,” according to Kleinhenz.
Once the county and Eastern Bartholomew Water Corp. work out a solution regarding water pressure, the next step will be to decide the best way of financing the work.
Since the site is within a ‘Tax Increment Financing’ (TIF) area, one possible solution mentioned by London involves taking out a bond and repaying it with future TIF revenue.
TIF is a finance mechanism for development and redevelopment that captures increases in taxable assessed value within a defined area. The TIF uses property tax revenue derived from these increases to finance public improvements within a specified area.
However, using money derived from a TIF district would require a public hearing and approval of elected county officials. London says all financial options are being considered.
“We’re still trying to figure out how to (finance and build the infrastructure), but everybody is still committed to doing it,” London said.
Efforts are also being made to ensure the residents of Taylorsville are taken care of during development, Hester said.
