A company that city officials said is the first in Columbus to utilize a unique economic development tool has met its hiring goals.
In late 2017, Axiscades, Inc. announced they would establish its North American headquarters in Columbus. The Bangalore, India-based product engineering and high-technology solutions company leases space at 810 Brown St.
But instead of a tax abatement from the city, the company requested up to $50,000 in reimbursements from economic development income tax funds. The reimbursements are for expenses related to start-up, relocation, rents and property improvements.
No other company in Bartholomew County has requested this type of performance-based cash incentive, Columbus mayor Jim Lienhoop said. The mayor also said this type of incentive reflects the low-investment nature of an IT (information technology) business, where the greatest expenditures are in personnel.
“We want high-paying jobs, but at the end of the day, there’s not that much to tax (at Axiscades) because they don’t have machinery nor equipment you might find in a manufacturing operation,” Lienhoop said. “We thought about how we could continue to attract, assist, and encourage them to come to Columbus, and this was the solution we came up with.”
In order to receive the first reimbursement, Axiscades was required to hire seven full-time employees no later than March 31, 2021.
However, the company has already surpassed that total by hiring 10 full-time employees earning wages averaging $34.49 an hour, said Robin Hilber, community development programs coordinator for the city.
On Tuesday, the city accepted claims and proof of expenditures from the company, so that the reimbursements can be made. While further expense claims may be submitted, the company has agreed not to request a local tax abatement until at least 2027, Hilber said.
Qualified reimbursements do not have to be paid back unless the company ceases operations in Bartholomew County, Hilber said. If that happens, the city can require Axiscades to pay back all money within 90 days, according to the original agreement.
While there were no tax abatements offered to lure the company to the Hoosier state, there were substantial incentives provided by the Indiana Economic Development Corp. Up to $4.8 million in tax credits and training grants were initially offered by the state.
But like officials in Columbus, the IEDC also required the company to hire a certain number of Hoosiers before they can receive funds through those incentives.
When Axiscades first announced they were coming to Columbus, they revealed plans to invest up to $10 million in their Indiana operations by the end of 2022. Although Hilber says the firm intends to continue expanding its payroll in Columbus, Axiscades is also hiring employees in other parts of the state.
The company’s business plan includes establishing satellite offices for customer-focused engineering teams. An office in Lafayette is intended to focus on customers in the heavy engineering, aerospace, medical, health care and energy industries, according to news accounts.
In late 2017, the company stated it planned to hire up to 500 high-wage jobs statewide by the end of 2023.
To learn more about Axiscades Inc.,visit axiscades.com.
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