Flexaust Company Looks To Purchase Former Midwest Rake Property
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Jennifer Peryam-jperyam@timesuniononline.com
Flexaust Company is looking to purchase property formerly occupied by Midwest Rake in order to expand. Warsaw City Council Monday night approved the company advertising for a public hearing for the council’s March 18 meeting at 7 p.m. at city hall. City Planner Jeremy Skinner presented the request on behalf of the flexible hose and ducting manufacturer. Councilman Charlie Smith made the motion to advertise for the public hearing, seconded by councilwoman Diane Quance. Smith said business retention is as important as business attraction. “When you have retention and can add 40 jobs and a feasible tax base this makes a lot of sense to me,” Smith said. The council will consider at the March 18 meeting a proposed economic revitalization area and a tax abatement for real and personal property. Flexaust is looking at the possibility of acquiring the vacant property at 1605 W. Center St., formerly occupied by Midwest Rake, in order to expand its manufacturing facilities in Warsaw. In addition to the real property tax abatement, Flexaust is requesting a 10-year tax abatement on $3 million in personal property equipment to be installed and operated at both 1605 W. Center St. and 1510 Armstrong Road. The business anticipates the addition of 40 new jobs over the next 10 years, Skinner said. Flexaust first approached the city in 2006 for a tax abatement to expand its existing facility at 1510 Armstrong Road, and has continued to grow since. Flexaust has added more than 25 employees since 2006, exceeding its original goal of 20 employees, according to Skinner. It purchased 602 Leiter Road in 2010 and received a tax abatement for real and personal property improvements at both locations. Flexaust is estimating the real property purchase to cost around $85,000, with an additional $3 million in new manufacturing equipment. Rick Helm, attorney representing Flexaust Company, during Monday’s meeting said the tax abatement is not giving taxes back to anyone, but is delaying new taxes to entice businesses to grow. One of Flexaust’s competitors moved its facilities from North Carolina to Mexico. “We would prefer to come here and do what we are proposing to do,” Helm said.
