Republic, Blue Polymers seek tax breaks on Indy recycling complex
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The operators of a nearly $144 million plastics recycling facility under construction on the south side of Indianapolis are seeking several tax breaks from the city that could save them nearly $10 million.
The four tax abatements, which together would forgive about $9.9 million in taxes over 10 years, are tied to a two-building, 286,000-square-foot complex being built at 1002 W. Hanna Ave. by Phoenix-based Republic Services Inc. and Orlando firm Blue Polymers LLC.
The abatement requests are expected to be considered for approval Wednesday by the city of Indianapolis Metropolitan Development Commission.
Together called the Polymer Recycling Complex, the two side-by-side buildings are expected to work together to recycle plastics from curbside collection and then use that recycled plastic to create new materials.
Republic’s Polymer Center will sort plastics into bales to be transported for additional processing at Blue Polymer’s Polymer Complex. The latter project aims to recycle the baled plastics into resin pellets for sale and to supply material for beverage containers, detergent bottles and similar products.
Here’s a rundown of the four tax abatement requests:
— Republic’s Polymer Center is expected to cost $24.6 million to build, adding $17.8 million in assessed property value to the property tax base. Republic is requesting a property tax break that would save it nearly $2.5 million over 10 years. It still would pay about $2.5 million in property taxes over that time.
— Republic expects to invest about $46.4 million in equipment and other personal property for the facility, which would add about $18.6 million in assessed value to the tax base. Republic is requesting a personal property tax break that would save it a bit less than $2.4 million over 10 years. It still would pay about $2.2 million in personal property taxes over that time.
— Blue Polymers’ Polymer Complex is expected to cost $23.7 million to build, adding $18.5 million in assessed property value to the property tax base. Blue Polymers is requesting a property tax break that would save it nearly $2.6 million over 10 years. It still would pay about $2.6 million in property taxes over that time.
—Blue Polymers expects to invest about $49 million in equipment and other personal property for the facility, which would add about $19.6 million in assessed value to the tax base. Blue Polymers is requesting a personal property tax break that would save it a bit less than $2.5 million over 10 years. It still would pay about $2.3 million in personal property taxes over that time.
Republic says in its abatement requests that it expects the Polymer Center to create 48 jobs at an average wage of $28 per hour. Blue Polymers says that its facility will create 60 jobs at an average wage of $25 per hour.
City development staffers say in their analysis of the requests that the projects would not be economically feasible without the tax abatements. They recommend that the Metropolitan Development Commission approve the requests.
The Polymer Recycling Complex is expected to open by the fourth quarter of this year.
Republic, one of the nation’s largest solid-waste and recycling companies, announced last year that it is developing a national network of Polymer Centers paired with Blue Polymers production facilities to create high-quality, customized recycled resins for consumer packaging and other applications.
Blue Polymers is a joint venture of Republic and Belgian plastics company Ravago. Republic and Blue Polymers have hired Lauth Group Inc. to develop and construct the Polymer Recycling Complex
The complex could create headway in a region known for its low recycling rates. Only about 11% of Indianapolis residents subscribe to a private recycling service, making Marion County among the state’s lowest in the category.
In addition to the proposed city abatements, the Indiana Economic Development Corp. has also committed up to $2 million in incentive-based tax credits and up to $100,000 in workforce-training grants to Republic Services, based on the company’s investment and job creation plans.
Additionally, the state agency has committed up to $4 million in Hoosier Business Investment tax credits, which are designed to help companies invest in smart manufacturing and new technologies.
Republic told IBJ this week said it has been engaged on incentive talks with state and local government since mid-2022.
IBJ reporter John Russell contributed to this story.