$12M OFS expansion supported by tax increment finance revenue

The Huntingburg Redevelopment Commission approved pledging 90% of tax increment financing revenues from a newly created allocation area toward economic development bonds supporting a $12 million expansion by OFS Brands Holdings at its Plant 18 facility.

The commission approved Resolution 2026-10, which sets the stage for a roughly $3.9 million bond issue to help fund construction of two new facilities totaling 120,000 square feet on the north side of Plant 18.

Bill Kaiser, representing OFS as counsel, told commissioners the expansion builds on approximately $25 million already invested in machinery at Plant 18, which currently cuts and processes parts for furniture products assembled at other OFS facilities.

“It’s going to allow OFS to continue to grow and expand its production and manufacturing here in Huntingburg,” Kaiser said.

The new facilities will be used to store raw product, stage materials into existing machinery and perform partial assembly.

“This machinery can run 24/7,” Kaiser said. “OFS is not quite at 24/7, but the expectation at some point is this expansion will allow that facility to continue to grow.”

A key point the commissioners noted is that the city bears no financial liability under the arrangement. OFS itself will purchase the bonds, meaning the company essentially pays property taxes into the TIF allocation fund and receives a portion back to cover its own debt service.

“There won’t be any debt incurred by the City of Huntingburg with respect to these bonds,” Kaiser said. “These are bonds that OFS will end up purchasing and pay for.”

Angie Steeno of Crowe, the project’s financial advisor, says the bond issue is structured over 25 years and accounts for both real property investment coming in two phases and approximately $2 million in personal property investment.

“Property taxes will get paid by OFS. They’ll get set aside in the allocation fund, and then they will be paid a portion of those back towards the debt service since they’re buying it themselves,” Steeno said.

Steeno also noted that the new allocation area operates independently from a prior TIF area within the Industrial Park Economic Development Area, which expired in January 2026, allowing revenues from each to be tracked separately.

The resolution now moves to the Economic Development Commission, which is scheduled to meet on July 13, 2026 and will then be reviewed by the Huntingburg Common Council.

In a separate action, the commission also approved a $173,000 amendment to the 2026 TIF annual spending plan, directing funds from the 400 West City Allocation area toward street maintenance as part of the Fourth Street reconstruction project.