The City of Westfield has approved a measure to provide a 10-year tiered tax abatement to a nuclear medicine company planning to open in the city.
On Jan. 29, the Westfield City Council approved a resolution regarding tax abatement deductions for Isotopia, which will operate at 17075 Oak Ridge Rd.
The Israel-based company is focused on developing, producing and supplying cutting-edge diagnostic and therapeutic radioactive isotopes, according to a presentation made before the council last month. Nuclear medicine focuses on oncology and cancer treatment, among other diagnostic and therapeutic needs.
After rapid growth overseas, the company decided to establish its North American headquarters in Indiana.
Isotopia is expected to create about 50 new jobs, with payroll and benefits anticipated at $4.8 million annually, according to the company.
Isotopia representatives told the council that the search for a North American headquarters began about 18 months ago. The deciding factors for choosing Westfield included available real estate, talent, logistics infrastructure, business climate and economic development incentives from both the city and the state of Indiana, the representatives added.
Per the resolution, the totality of the project is sufficient justification for a 10-year personal property tax abatement, which will include 100 percent abatement for Years 1 through 5. Starting at Year 6, the abatement will be stepped down, annually, to 85 percent, 69 percent, 50 percent, 33 percent, and finally 17 percent in the last year of the agreement.
The project cost to open the site is estimated at $7 million. Isotopia’s total capital investment is estimated to be $17.4 million.
The abatement will represent about $511,878.