Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tax Abatement topic
No spam. Unsubscribe anytime.
Council approves tax-abatement framework for Veekin North America headquarters
Summary
The council approved a real-property tax-abatement resolution for Veekin North America's planned 80,000-square-foot North American headquarters in Westfield, including an abatement schedule staff described as front-loaded to offset developer costs.
The Westfield Common Council voted 6-0 to adopt a real-property tax-abatement resolution recommended for Veekin North America’s planned North American headquarters and distribution facility, an industrial project city staff said will generate new assessed value and jobs on a 16-acre parcel.
Claire Jelenas, economic development strategist for the City of Westfield, presented the recommendation and described the proposed development as an 80,000-square-foot headquarters and warehouse on a 16-acre parcel. Jelenas said the company estimates capital investment of “a little over $11,000,000” and projected assessed value when complete of about $6,100,000. She summarized the staff-recommended abatement as a front-loaded, step-down schedule designed to offset upfront costs including annexation, rezone, utility extensions and construction.
Robin North, executive vice president for Veekin North America, introduced the company and said Veekin is a supplier of sanitation and material-handling tools for the food-processing and hygiene-critical industries; he said the parent company is based in Denmark and that the parent is largely owned by a family foundation. North said Veekin’s North American operations currently employ about 55 people and that the new Westfield facility would consolidate operations and house warehouse and office space. He described planned facility sizing as “a 70,000-square-foot warehouse plus a 10,000-square-foot office” with approximately 20 to 25 office employees and another 20 to 25 warehouse employees during a single daytime shift.
Councilor Noah Herron moved to adopt resolution 25-1-34; Councilor Chad Huff seconded. The motion carried on a roll-call vote of six yes and zero no. City staff noted the resolution requires the company to complete construction within three years of incentive approval or renegotiate terms.
Jelenas said the abatement phases only the improvements (the new building), while land-value taxes continue to be captured by existing taxing units. She cautioned the numbers shown were based on current assessed values and tax rates, which may change. No further conditions or changes to the abatement schedule were approved at the meeting; any future changes would require additional council action.
