The plant site chosen by the company has gone unused since the early 1950s due to heavy metals contamination from prior railroad use. As part of the project development, Indeck will spend more than $1.3 million to isolate and contain the contaminated soils.
"This project will help Indeck to meet its growth goals for the next several years, as well as provide for much needed asset diversification into a new electrical grid," says Richard Robinson, Indeck's manager of business development. "At the same time, the city of Niles will become the home of a highly efficient, clean, state-of-the-art electrical generating station that will provide tax revenue growth and high-paying jobs for the city."
According to Robinson, the generation plant will utilize gas turbine technology.
To encourage Indeck's investment, a $1.3-million brownfield tax credit was approved by the state. Michigan will also provide the company with a 3-mill state education tax abatement valued at $9.1 million. The city of Niles has offered the company a 12-year abatement worth $6 million.
Recent amendments to the Brownfield Redevelopment Financing Act allow a brownfield authority to capture property taxes for an expanded set of activities, including infrastructure improvements, demolition of structures and site preparation. The Niles Brownfield Redevelopment Authority has authorized $300,000 in tax increment financing for the Indeck project.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
