Heartland seeks tax abatements

Clark County

Discussion

February 23, 2010

Request tabled during Monday meeting

By DAVID A. MANN The News and Tribune Tue Feb 23, 2010, 11:13 PM EST

Heartland Payment Systems, a nationwide transactions processing company with a Jeffersonville service center, will seek tax abatements on $82 million in real property and $4 million in personal property.

Tax abatements allow companies to phase in property taxes over a pre-determined period of time, in this case 10 years. A representative from the company came to the Jeffersonville City Council on Monday night requesting approval. However, the abatements were tabled as related paperwork was still being completed and legal language was still being formalized.

The abatements will save the company more than $4.2 million in real and personal property taxes, according to Scott Hudson, divisional controller there. The property tax abatements are being applied for retroactively, applied to three phases of building improvements that have taken place at Heartland’s offices at North Port Business Centre, since late 2007.

Applying for the abatements prior to the construction simply “slipped through the cracks so we decided to go back,” Hudson said.

This is the first time we’ve done this,” said Matt Hall, vice president of economic development at One Southern Indiana, which worked with the agency in applying for the abatements.

The company moved from its former location at the Youngstown Shopping Center to its current location in December 2007. A second phase of construction added more office space and warehouse space in May 2009, Hudson said. The third phase, which is still being completed, adds a cafeteria, daycare and employee gym at the location. Space has grown from about 45,000 square feet at Youngstown to about 210,000 square feet at North Port.

The personal property tax abatements would apply to furniture, fixtures and computer equipment.

Hudson notes that the abatements would apply to jobs that have already been created at the business. Its employment numbers have jumped from about 300 while at Youngstown to 627 now, he said. The company’s combined salaries add up to about $25.3 million, according to a press release from One Southern Indiana.

The job growth that’s already taken place will likely be the number submitted when the abatement is applied for, Hudson indicated.

Hall said he anticipates additional growth for Heartland. However, Hudson said he could not estimate exactly how many jobs would be created in the future.

“Do we have plans right now to add jobs in Jeffersonville? No, we do not,” Hudson said. “Down the road we will look to grow our opportunities.”

“Heartland is a solid corporate citizen dedicated to this community and its employees,” said Michael Dalby, One Southern Indiana’s president and CEO “We are thrilled the company values its Southern Indiana operations and has plans for potential new investments in the area.”

Mayor Tom Galligan called Heartland Payment Systems an exceptional corporate citizen, as well.

“Jeffersonville is excited to be the place Heartland has chosen to continue their growth.”

Heartland Payment Systems delivers credit, debit, and prepaid card processing, payroll, check management and payments solutions, to more than 250,000 business locations nationwide.