VALPARAISO: Companies use city's tax-free status to lower costs
VALPARAISO | Votes on granting revenue bonds for projects don't usually attract a crowd of fans, but $11 million for the Pines Village Retirement Communities obviously was the exception.
More than 25 senior residents of the Pines Village facilities were on hand to hear, and perhaps provide encouragement, when the City Council voted on the request at its May 12 meeting. It was one of two large economic development revenue bond requests before the council totaling $21 million. The other was for Task Force Tips.
City Economic Development Director Matt Murphy said the Pines Village bonds would help retain jobs in addition to improving the overall quality of life for the residents of the facility on North Calumet Avenue.
The money will be used to renovate the independent living apartments, build new residential units, a dining area, a kitchen, an entryway, a loading dock, a connecting link from the core building to the assisted living units and garages and related improvements at the Pines Village campus.
Also, it will pay for constructing a road, sidewalks, sign, landscaping and other improvements at the Meridian Woods campus on Campbell Street.
The revenue bonds allow the Pines Village owners to borrow the money using the city's tax-free status on bonding to get a lower interest rate. The city has no obligation to pay off the bonds, which will run for 30 years.
Task Force Tips plans to build an 82,000-square-foot addition to its plant in the Montdale Industrial Park and add an anodizing line and other manufacturing equipment. The anodizing line, which provides a protective coating to the fire equipment the company makes, will enable Task Force Tips to eliminate the cost of sending products to Chicago for the treatment and possibly do treatment for other companies.
The expansion is expected to result in about 45 new jobs over the next three to four years. Both revenue bonds received unanimous council approval.
Posted in Local on Wednesday, May 21, 2008 12:00 am Updated: 12:51 am.
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