Following a recent public hearing with no remonstrators, the Munster Town Council approved a seven-year tax abatement for Carl Buddig & Co., the second lunch meat producer to move part of its operation from Illinois to the town.
In the first year, Buddig & Co. will have a 100 percent tax abatement. The amount of the abatement decreases each of the next six years, with the company paying increased amounts of taxes during those years.
One percent of the tax abatement’s value will be donated by Carl Buddig & Co. to the Munster Civic Foundation for public art.
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The warehouse/distribution site is within the Munster Economic Revitalization Zone. Businesses in this area can be granted tax abatements for improvements made to the spaces occupied, Johnson said.
“Currently the facility pays $85,087 in real estate taxes. We will look to capture Buddig’s personal property investment in the near future by making them a designated tax payer,” Johnson said, adding personal property tax dollars from a designated taxpayer go directly into the Munster Tax Increment Financing fund.
The Indiana Economic Development Corp. also offered Carl Buddig & Co. up to $300,000 in tax breaks if the company employs as many people as promised.
