By Ann Marie Shambaugh
The Zionsville Town Council on Aug. 7 approved a reimbursement of $10,000 to Capstone Benefits Group to cover moving expenses if it relocates from Indianapolis to Zionsville’s Northwest Tech Park.
Capstone is a consulting firm that works with employers to improve benefits plans, compliance and strategic planning. It has 28 employees and plans to hire 25 more at an average wage of more than $25 per hour after it moves and has room to expand.
The company is considering a move into an 11,000-square-foot warehouse building that has been vacant for at least 15 years. Browning Investments owns the building and is planning to make “a significant investment” to upgrade it to office space, although the exact amount it plans to spend is not yet clear, according to Boone County Economic Development Corp. Business Development Manager Ben Worrell.
Some councilors expressed concerns about the deal. Councilor Susana Suarez said previous incentives approved by the town have gone to larger companies and included requirements that they stay in town for a certain period of time.
“This seems to be a little premature based on these variables that have not been addressed,” she said. “I’m very supportive of incentives; I just don’t feel this is in a place I feel comfortable.”
Worrell said although the incentive does not include a requirement for Capstone to remain in Zionsville, the improvements to be made to the office building would make it much more valuable and attractive in the future.
He also said Capstone is considering other relocation sites and that the incentive is “a key variable in moving forward.”
The Boone County EDC anticipates Capstone would generate more than $90,000 in Local Income Tax in a 10-year period if it moves to Zionsville, assuming that 10 percent of employees are county residents. It also expects the town to receive more than $30,000 in personal property tax levy in that time.
Councilor Kevin Spees questioned the accuracy of the numbers and was the lone vote against the incentive.
The Boone County Commissioners and Boone County Redevelopment Commission are expected to vote on a separate $10,000 incentive for Capstone this month.
