WEST LAFAYETTE, IN — The West Lafayette city council reviewed three companies Monday night that had fallen short of goals tied to their tax abatements — Rolls-Royce, Saab Aeronautics and Inari Agriculture — ultimately finding Inari out of compliance and clearing the other two.
To retain their abatements, companies pledge to meet certain investment and employment targets. Under the terms of the agreements, companies do not have to hit every metric to remain in compliance; they must only show substantial progress toward those commitments.
Greater Lafayette Commerce argued successfully that both Rolls-Royce and Saab Aeronautics, despite falling short of some goals, had contributed enough to be considered in compliance.
Inari was a steeper battle. The company has met only 12% of its $3.5 million projected investment and, as of the meeting, had filled just 16 of the 140 jobs it pledged to create by the end of 2026. Brooklyn Burton, vice president of economic development at Greater Lafayette Commerce, argued Inari should still be found in compliance because its investment was increasing and its wages far exceeded state and county averages.
Councillor David Sanders disagreed. “As a scientist, I would reject that paper if I was told that an increase from 14 to 16 was a significant increase,” he said.
In January, the Cambridge, MA-based Inari began a restructuring plan that laid off 64 employees at its West Lafayette facility. Inari opened its 42,000-square-foot Purdue Research Park facility, called the Seed Foundry, in 2024. The $20 million project was the company’s largest expansion since its 2016 inception. Inari officials secured a five-year tax abatement from the city in 2023, a year after they began construction on the facility and five years after they announced the move.
Inari’s abatement is structured to wind down by 20% a year over five years, providing 100% relief in the first year, 80% in the second, and 60% in the third and current year. In an apparent bid to preserve this year’s rate, Inari told the council in a letter, sent in lieu of a representative, that it would not file for the 40% abatement it would otherwise be entitled to for the 2026-2027 period.
Sanders was unmoved, noting Inari had waited until the last minute to notify the council. “It’s done at the last second. They’ve known for months,” he said.
He voted with the rest of the council to find Inari had not met its obligations. “Yeah, I don’t see any reason to wait,” he said. “They’re not in compliance. They’re already telling us that next year they don’t anticipate being in compliance.”
Sanders also cast the lone vote to find Rolls-Royce and Saab Aeronautics out of compliance as well, adding that the underlying justification for the abatements was flawed from the start.
“I continue to believe that the designation of the area as an economic revitalization area was not correct, and so this tax payment was not necessary in order to attract this business,” he said.
A hearing at the council’s regular Aug. 3 meeting will determine next steps regarding Inari’s non-compliance.
This article originally appeared on Lafayette Journal & Courier: WL council finds Inari lacking on tax abatement deal; Rolls-Royce, Saab cleared
Reporting by Meagan Hipsky, Lafayette Journal & Courier / Lafayette Journal & Courier
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By Meagan Hipsky, Lafayette Journal & Courier | USA TODAY Network
