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Land Banking shows positive economic impact

Seal of Allen County

Allen County Board of Commissioners news release:

Allen County Land Banking Program Shows Positive Economic Impact
1,400 jobs, $1.5 million in local taxes paid from businesses

(November 2, 2020) — Land banking is proving to be a powerful tool in Allen County’s work to become a more prosperous region within the global economy. Just how powerful can now be seen statistically.

Results of a recently completed economic impact analysis show that land-banking efforts of the county’s Redevelopment Commission since 2011 have resulted in the retention of nearly 1,500 jobs and payrolls totaling $64 million. Details of the analysis were presented today at a news conference conducted by the Redevelopment Commission.

The analysis included projects in three areas in east and southwest Allen County from land acquisitions made from 2011 to 2013. The properties acquired and sold by the commission resulted in the attraction or retention of five businesses with a combined workforce of 1,470 employees and an annual payroll of $64 million in 2019.

Local governments in Indiana through their Redevelopment Commissions have the ability to buy and sell property for redevelopment and economic development projects. However, Allen County leaders recognized over a decade ago that it was not good enough just to have ownership control of the land. Land also needed to be shovel-ready for the next site selector, company or developer that had an economic development project ready to move forward.

With funding of over $5.4 million for the land-banking program, the county has purchased more than 500 acres of land at a cost of $4.8 million since 2007. Of that, 402 acres have been sold for $5.9 million — a profit of $1.1 million. Also to make the sites ready for development, the county has spent almost $200,000 in due diligence activities and $7.65 million in public infrastructure improvements.

On the local tax impact, even with tax abatements still active on many of the properties, the businesses still paid about $1 million in property taxes in 2019. The payroll at these facilities resulted in an estimated $500,000 in local income taxes in 2019. Since 2012, the benefits come to $2.5 million in local income taxes and $3.2 million in property taxes.

“A decade has passed since the beginning of our land banking program, and we remain committed to making Allen County ready for development,” said Richard Beck, Allen County Commissioner and president of the Redevelopment Commission. “The results of this economic impact analysis prove what we’ve known all along – that the program works and contributes to the retention and expansion of jobs in our community.”

Currently, the commission owns 110 acres for sale, of which 65 acres are located in the Redevelopment Commission-developed Stonebridge Business Park located across Lafayette Center Road from the General Motors Truck Assembly plant. More information on those sites can be found online at https://www.allencounty.us/economic-development/available-sites.

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