Council adopts nine-year tax abatement for Hansen Companies to support new manufacturing facility

The St. Joseph City Council on Monday approved a nine-year property tax abatement for Hansen Companies to support construction of a new 82,500-square-foot manufacturing building with a 6,000-square-foot office.

City staff presented the request and said Hansen would retain 61 existing jobs at its current Pearl Drive location and create about a dozen additional positions over the coming years. The city described the requested incentive as a pay-as-you-go rebate of the city portion of property taxes, not to exceed $396,438, with taxes payable starting in 2026.

"Hansen is proposing to construct a 82,500 square foot building with a 6,000 square foot office space," said the city staff presenter (speaker 10) during the council presentation. The presenter also said the Economic Development Authority reviewed the project and "recommended unanimous approval" and that the request scored high under the city's subsidy policy because it met the job-retention/creation threshold.

Councilors asked whether the abatement would produce positive net city revenue during the abatement period; staff replied the full city portion would be abated for the term, meaning the city would not collect that portion of property tax revenue while the abatement is in effect.

Councilor (speaker 12) moved to adopt Resolution 2024-25 approving the tax abatement for Hansen LLC; the motion was seconded and carried on a voice vote.

The resolution and abatement agreement were described by staff as a package: if adopted, reimbursements would be paid to Hansen Companies one or two times per year under a pay-as-you-go arrangement and the company would be required to operate in St. Joseph throughout the abatement term.

Next steps: staff indicated related zoning items will return to the council at a later meeting and tax payments subject to the abatement would begin to show on the tax rolls in 2026.