Monday, July 28, 2014

Journal & Courier Reports Lafayette Approves Abatement for GE Aviation

From the Lafayette Journal & Courier:

The Lafayette Redevelopment Commission on Thursday approved a 10-year tax abatement plan for GE Aviation and its leasing company, Pure Development.

"It's moving quickly, and we hope we can move it quicker," Eric Mattison, a GE Aviation representative, said to the commission.

The tax abatement plan would allow GE Aviation, the world's largest jet engine manufacturer, to pay no taxes on the assessed value of the property, which is currently valued at $53 million, on the first year and by the 10th year pay 90 percent of taxes, according to city documents.

GE Aviation will sign a 15-year lease with Pure Development, an Indianapolis-based real estate development firm, for what will be a 300,000-square-foot building at Park 350, a business park near U.S. 52 on Lafayette's south side, where ground was broken this week.

The abatement plan would free Pure, as owner of the building, from paying taxes on $38 million of assessed value in the first year; by the 10th year, it would pay 95 percent of the taxes.

The initial assessed value is likely to change, as the Tippecanoe County assessor has the final say on the total value of property, said Dennis Carson, director of the city's economic development department.