City Council to Mull Over Incentives for D-Patrick's New Location

Published 06/24 2014 06:04PM

Updated 06/24 2014 06:19PM

At Monday night's Evansville City Council meeting, it was a matter of where but now it's a matter of when and how much.

"The deal last night was more about changing and asking for the zoning," said City Council President John Friend.

The owners of D-Patrick could receive around $8.3 million when the city purchases the downtown lot to make way for the IU Medical School expansion project. That land acquisition is expected to be finalized soon, officials said.

D-Patrick has been eyeing a blighted area just south of the Lloyd Expressway near Highway 41 to build it's new location. The new location is poised to become prime commercial real estate once the Lloyd Expressway - Highway 41 interchange project is complete.

On Monday night, the City Council declared the area as a economic development area which would allow D-Patrick to possibly receive a phase-in of property taxes if, in fact, it decides to move there.

The potential future site of D-Patrick has an assessed value of $1.25 million and by the time D-Patrick moves in, the value could be around $7 million, according to Friend. Friend said D-Patrick wants to have the difference in property taxes phased in over 10 years.

While he would agree to a tax phase in, Councilman Friend said he wants to make sure D-Patrick doesn't pay less in property taxes than what it is paying at it's current location downtown.

"I'd lean more for them paying [the current value] and the extra that they have, they phase that in over ten years," Friend said.

Also on the table is the possibility of using money from the Indiana Hardest Hit fund to help remove some of the blighted properties in the area, Friend said. This incentive is necessary in order to bring in investment to blighted areas, city officials said.

"Should that go [D-Patrick's] way, [I believe] that property tax phase-in should be ratcheted down for the value of what they receive of the federal grant money," Friend said

Councilman Friend said he supports the D-Patrick development, adding it would help revitalize an area that has become blighted in recent years.

Copyright 2015 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


.