Hammond council approves Swanel Beverage expansion, food & beverage tax
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The Hammond City Council on Monday approved a 10-year tax abatement for Swanel Beverage’s planned $7 million expansion. The company plans to construct a new building at the former Carpenter’s Hall site next to its existing facility and add at least five jobs.
The council also gave final approval for a 1% food and beverage tax to support two major projects.
Swanel Beverage
Swanel Beverage has been operating in Hammond for more than 75 years. The company makes fountain syrup and concentrated juices, as well as associated dispensing equipment for restaurants, municipalities, night clubs and other customers, according to its website.
The tax abatement, the council said, would save Swanel approximately $313,000 over the 10-year period.
“It’s a great project for the third district,” Mayor Tom McDermott told the council on Monday. “It’s a great company right here in Hammond. This is a project that could help us down the road with developing right around City Hall as well.”
Swanel Beverage currently employs 42 people with a $3.8 million annual payroll. Matt Byrd, president of MCR Partners, which represents Swanel, said the new jobs would come with wages ranging from $60,000 to $120,000.
Ed Roviaro, owner and president of Swanel Beverage, said the company is elated to move forward with the project, which had been in the works prior to the pandemic.
“Our beverage industry was decimated, but it came back, and we’re actually stronger than ever,” Roviaro told the council. “This project is like the mayor said is going to help this area. I will assure you, we will not let you down.”
One resident, George Stoya, expressed concern over whether the people hired for the new jobs would be residents of Hammond. Councilor Barry Tyler, who represents the city’s third district where the expansion will take place, noted that companies that receive tax abatements must hire Hammond residents for at least 51% of any new jobs created.
A timeline for construction on the new facility was not provided.
Food & Beverage Tax
Meanwhile, the council voted 6-0 to approve the city’s new 1% food and beverage tax. Per state statute, only councilors in attendance at the meeting were eligible to vote; three councilors were not present.
The city was given the ability to implement the tax by the Indiana General Assembly during the 2024 legislative session. McDermott previously said the tax could generate up to $2 million in new revenue annually.
With the council’s approval, revenue generated from the tax will support an expansion of the Hammond Sportsplex and the construction of a new Downtown South Shore Train Station.
The $18 million, 135,000-square-foot Hammond Sportsplex opened in 2018 at 6630 Indianapolis Boulevard. The planned expansion has a cost of $9 million and would add more than 25,000 square feet to the existing building.
Design work on the sportsplex has begun, and a spokesperson for the city told Inside INdiana Business earlier this month that construction could begin in the fourth quarter of 2024 or first quarter of 2025.
The Downtown Train Station is an effort to take advantage of the West Lake Corridor Extension of the South Shore Line, which is currently under construction. The $945 million project will bring the rail line from Hammond south about eight miles to Dyer.
McDermott said in a news release this month that the station will be a signature station along the new rail line, complementing the work the city has done to make its downtown walkable and accessible.
“Although this wasn’t part of the original West Lake expansion plans, we recognize how important this station is for Hammond and so we are building it on our own,” he said. “Connecting new residents in downtown Hammond to Chicago, Michigan City, and South Bend is a huge step forward.”
The train station project is expected to cost about $10 million and could begin as soon as the West Lake Corridor project is complete, which is currently slated for May 2025.