A specialized aluminum company moving from Huntertown to Fort Wayne was granted a tax break on the new site, but an existing abatement must be revisited by the Huntertown council next month.
Allen County Council members approved a two-year vacant building deduction for Parco Inc., which is moving from 16335 Lima Road in Huntertown to 9100 Front St., near West Wallen and Lima roads in Fort Wayne.
Tax abatement is a way local government can entice new businesses or retain existing jobs, and it exempts all or a portion of a company’s increased assessed value on new investment from property taxes.
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The 55,000 square-foot building was previously occupied by Paragon Industrial Supply LLC, but that company ceased operations more than two years ago. The building must be vacated more than one year to qualify for the incentive, said Nicole Liter, an Allen County economic development specialist.
The incentive is based on assessed valuation, Liter said.
Parco will receive a 100 percent deduction on the $456,000 tax value the first year, saving $8,058 in property taxes. The second year the discount drops to 50 percent, saving $4,029 in taxes – or $12,087 total. A year ago, the Huntertown council approved a three-year abatement for $184,250 worth of new equipment for Parco.
Typically one municipality would waive jurisdiction to the other, Liter said. She plans to meet with the Huntertown council in February to discuss the issue.
