Lafayette council approves $1M TIF forgivable loan for Sustania Biologicals project
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Summary
The Lafayette City Council approved an ordinance to provide a forgivable $1 million TIF loan to Sustania Biologicals LLC as part of a package to attract a proposed 40,000 sq. ft. manufacturing facility estimated at about $400 million; the council also approved a companion resolution adding the site to the Southeast TIF area.
The Lafayette City Council voted unanimously to approve Ordinance 2026-10, authorizing city financing to support the Sustania Biologicals LLC project and implementing a $1,000,000 tax-increment financing (TIF) commitment structured as a forgivable loan.
Council member said the company plans to build a roughly 40,000-square-foot manufacturing facility on the south side of town and described the project as part of a larger investment. “Sustania will produce Biomeg from corn derived dextrose for, PET plastics and related manufacturing applications,” the council member said, adding the investment is “estimated to be around a 400,000,000 investment.”
Why it matters: Council and staff said the incentive is intended to secure the project’s location in Lafayette and spur local economic activity. As presented to council, the city’s $1,000,000 TIF commitment complements a county contribution of $500,000. The financing is structured as a forgivable loan that would be repaid only if the company does not complete agreed project milestones; the loan would be forgiven after the plant opens and obligations are satisfied.
Details of the approval and next steps: The ordinance was moved and seconded on the council floor and passed by roll-call vote, 8–0. Council also passed Resolution 2026-07 to add the Sustania project site and surrounding parcels into the Southeast TIF allocation area so the incentive package aligns with the redevelopment plan; staff said the resolution will return to the redevelopment commission for a confirming step. The council member explained the ordinance “is a way for us to, basically honor our $1,000,000 commitment” and described the financing as “structured as a forgivable loan.”
What council said about structure and oversight: According to the presentation, the financing is a taxable economic development revenue note tied to performance conditions; if Sustania satisfies project conditions and opens, the loan would be forgiven. Council did not provide a detailed repayment schedule during the meeting; the ordinance text and any related loan documents were not read into the record at length at the meeting.
Procedural note: The action was taken on an ordinance that council moved to hear and approve; city staff answered questions on the record and no public comments were offered on this item before the vote. The companion resolution (2026-07) also passed 8–0 and will proceed to the redevelopment commission for a final confirmation.
