The Valparaiso common council approved Resolution No. 12, a seven-year real-property tax abatement for Nacho Business LLC that will enable construction of an 80,000-square-foot building to be leased to Sensit Technologies.

George Douglas, the city’s economic development director, told the council the building would include 20,000 square feet of office space and 60,000 square feet for manufacturing and warehousing and that Chester Inc. will serve as the project’s design–build contractor. Douglas said Nacho Business owns the 12-acre site in the Airport Business Park and that Sensit will be the sole tenant under a 10-year lease with a 10-year renewal option.

“This is a local partnership,” Douglas said, describing the Piquet family, Chester Inc. and Sensit as long‑standing local businesses and arguing the investment would diversify Valparaiso’s tax base and retain a growing employer in the city. Douglas said the abatement request is for seven years with a phased-in assessed-valuation schedule that begins at 100% in year one and phases to 14% in year seven; the presentation packet provided to councilors estimated an assessed-valuation increase and listed an initial building investment of 6,500,000.0.

Steve Follenkamp, identified as Sensit’s chief financial officer during the presentation, described the company’s products and operations and gave councilors a short history of Sensit’s local growth since 2003. “At that point, we were a company of 30 people, and today we’re a company of 112 people,” Follenkamp said. He said Sensit manufactures gas-detection and environmental monitoring equipment used by first responders and utilities and that the company spends money on research and development and retains skilled local employees.

Douglas and presenters told the council Sensit has committed to add 12 positions over a multi‑year period (the abatement agreement lists the hiring commitment) and to pay what the presenters described as an agreed fee and property taxes during the abatement life. Douglas said the property’s current tax bill is nominal — about $680 for the lot this year — and that full assessment after construction would increase the annual property tax bill to the range shown in the packet (the presentation cited an estimated annual tax amount of roughly $170,425 at full assessment).

Council members asked detailed questions about ownership, tenant commitments and the new local ordinance that governs incentive use. Several council members said they toured Sensit’s facilities and praised the company’s local hiring and product lines. One council member pressed for clarity on ownership and whether a private-equity parent would change commitments; presenters said the abatement would be granted to Nacho Business LLC, the owner of the parcel and building, and that Sensit would be a tenant under a triple-net lease.

The council voted by roll call to approve Resolution No. 12 and the tax abatement agreement. The vote as recorded in the public roll call was unanimous in favor (seven yes votes). The abatement and the tax-abatement agreement include permit and compliance contingencies; Douglas told the council permits and the compliance process under the city’s Ordinance No. 6 must be satisfied before building permits issue.

The council’s approval is the first formal step. Douglas told councilors the developers and Sensit expect to begin construction quickly and that the council retains authority to withdraw the abatement if the contractual commitments are not met.

Votes at a glance: Resolution No. 12 (tax abatement for Nacho Business LLC / Sensit) — approved by roll call (7-0).