The Columbus, Ind., City Council agreed to a pair of requests from Cummins Inc. during its meeting Tuesday (July 2) night.
The Columbus-based engine manufacturer asked for an area next to its Walesboro facility to be designated as an Economic Revitalization Area (ERA). That parcel of land is connected to an area already designated as an ERA when the Cummins Mid-Range engine plant was built there in 1991.
Cummins plans on constructing a 428,000 square-foot warehouse on the property. The company says that 25 jobs will be created and another 80 jobs retained. Cummins also plans to spend over $15 million in capital investment over the next two years.
Cummins officials say they plan on beginning construction of the warehouse in early October, with completion scheduled for next summer. Employees currently based on operations in Seymour, Johnson County and other areas will be transferred to the new facility. The new hires are scheduled to take place upon completion of the warehouse.
The Columbus City Council also approved a request from Cummins for a tax abatement. The company purchased an office building a few years ago and says it has spent $7.1 million as an initial investment in the property with no tax abatement.
The building is currently home to 376 Cummins office workers. Company officials say conditions are very cramped and as such, plan on expanding. Doing so, they say, would give current employees more space and allow employees at other facilities to join the campus, streamlining operations. The measure would increase headcount there to 525.
The council unanimously approved Cummins request for a tax abatement on $5.6 in additional investment.
Both Cummins requests were approved on first reading. A second reading is needed before approval is official. Those second readings are expected to take place at the next council meeting on Tuesday, July 16.