Vote clearing way for IEDC’s SK hynix incentives put on hold, as WL awaits deal

Mayor says things are on track, even as commission delays vote until city finalizes things with IEDC over share of tax revenues from SK hynix’s $3.87B chip facility. Plus, more water bills emerge

(Photo: SK hynix)

A maneuver key to the state’s incentive package offered to South Korean chip maker SK hynix to build a $3.87 billion facility in West Lafayette was delayed again this week, when the head of the West Lafayette Redevelopment Commission said the city still hadn’t worked out a satisfactory deal with the Indiana Economic Development Corp.

On Wednesday, the redevelopment commission tabled a final vote on a measure that would pull a 90-acre parcel along Yeager Road, in the Purdue Research Park, from the city’s KCB Tax Increment Financing District. The move would clear the way for the IEDC’s offer of hundreds of millions of dollars in Innovation Development District tax rebates to SK hynix.

That move also would mean funneling tax revenues from that acreage – including from property, sales and income taxes – away from local control and into the hands of the IEDC, except for an amount settled on with the city.

As of this week, that agreement hadn’t been reached after months of negotiations, Larry Oates, president of the West Lafayette Redevelopment Commission, said during a Wednesday meeting. He suggested the delay in the final vote to protect the city and Tippecanoe School Corp. until a deal is finalized that would make sure costs related to roads, wastewater treatment and other infrastructure tied to the SK hynix facility are covered.

This week’s delay followed a tabled vote in December.

“This is the final approval, and we’re holding our cards tight to our chest,” Oates said. “I don't want it to be thought out in the public that this is something that we're not interested in. We are very interested, in fact, highly interested in this entire project. We want to see this happen, but we want to see it happen the right way, so that we have the proper growth and support for our governmental entities within this district once it's done.”