Vestil lands $8M tax credit for latest expansion
By Mike Marturello | The Herald Republican - KPC Media
Vestil Manufacturing received an $8 million federal tax credit through a Fort Wayne entity that recently expanded to serve northeast Indiana.
Fort Wayne Mayor Tom Henry on Thursday announced the City of Fort Wayne New Markets Revitalization Fund anticipates investing in six projects located throughout northeast Indiana.
Of the six, only Vestil was outside of Allen County. This was the first time the allocations could be made beyond Allen County.
“I’m pleased the Fort Wayne New Markets Revitalization Fund is able to help fill financing gaps in such important projects,” said Mayor Henry. “By working together, we are helping create jobs and provide opportunities for residents to succeed throughout northeast Indiana.”
Vestil plans to create up to 100 well-paying new jobs by 2021. It will construct a new 225,000 square foot fulfillment center in Angola Industrial Growth Park. Vestil is one of Steuben County’s largest employers and an industry leader in the manufacturing and distribution of industrial material handling equipment.
To qualify for the allocation, a project must be in a census tract designated as low income. As a practical matter, projects also need to be in the $6 million to $8 million range, at a minimum, because of the complexities involved in structuring the deal, Sharon Feasel, director of Fort Wayne’s community development entity, told Greater Fort Wayne Business Weekly in February.
In February, the FWNMRF received $55 million in New Markets Tax Credits allocation authority. FWNMRF received previous allocations of $15 million in 2008 and $33 million in 2014.
The other five projects, and their estimated allocation amounts, include:
- Byron Health Center, $12.5 million. Byron Health Center is a non-profit facility that provides long-term health care, memory care, skilled nursing care and physical and occupational therapy for vulnerable populations who have multiple diagnoses. The center will be re-locating from Lima Road to the corner of Beacon Street and Lake Avenue.
- Electric Works, $12 million. Electric Works is the adaptive re-use of the former GE campus in near southwest Fort Wayne.
- Fort Wayne Rescue Mission, $10 million. The Rescue Mission is a local non-profit organization providing restorative care to men, women and children experiencing a homeless crisis. The Mission is building a new facility at 400 E. Washington Blvd.
- Fort Wayne Boys & Girls Clubs, $8 million. The Fort Wayne Boys & Girls Clubs is a local non-profit that provides after-school and summer programs to low-income, school-aged children. A new 2.3 acre campus and building are currently under construction.
- The Landing, $4.5 million. The Landing is the historic restoration of seven buildings and the construction of one new on West Columbia Street. The project includes 70 apartments and 56,000 square feet of commercial and retail space.
The Fort Wayne New Markets Revitalization Fund is a subsidiary company formed by the City of Fort Wayne. It is a certified community development entity eligible to apply for New Markets Tax Credits from the U.S. Treasury. The New Markets Tax Credit Program was enacted by Congress in 2000. It allows private investors to receive a tax credit against their federal income tax in exchange for investment in low-income communities.