Logansport leaders are considering a $120,000 incentive for a local construction company.
Cass-Logansport Economic Development Organization President Bill Cuppy pitched the proposal at a city council finance committee meeting Wednesday night. He said Steinberger Construction Inc.'s new ownership group of longtime employees is considering taking on the company's real estate on Water Street.
If they do, they wouldn't qualify for incentives like tax abatements, because the property's already on the tax rolls, Cuppy explained. They would be eligible for abatements, however, if they built a new building in town or in another community.
To overcome the abatement obstacle, Cuppy suggested city council approve $120,000 for the company from Logansport's county economic development income tax, or CEDIT, fund on the condition that the property is transferred to the owners.
Logansport has about $2.9 million in CEDIT funds and is projected to end the year with about $3 million, Cuppy said. He added there's $225,000 earmarked in Logansport's CEDIT budget for incentive funding that has yet to be drawn from this year.
Cuppy emphasized Steinberger Construction did not approach him about the incentive but rather he came up with it as a way to retain a longstanding business that currently employs 55 and has a payroll of about $3 million. He went on to commend the company's community involvement and reminded council members that it often carries out local projects for free like playgrounds across town and Muehlhausen Park's pavilion.
City Councilwoman Teresa Popejoy agreed.
"Personally I think it's a great use of CEDIT dollars," she said. "That's what they're there for."
The council will vote on an ordinance appropriating the incentive in a special session at 6:30 p.m. Monday, June 18 in the Council Chambers on the third floor of the City Building, 601 E. Broadway.
Reach Mitchell Kirk at email@example.com or 574-732-5130