Premier Property/Krempp Corporation partnership hopes to bring Indiana Furniture factory project to life

Premier Property Management and Krempp Construction are requesting $1.5 million from the City of Jasper to help fund a nearly $15 million redevelopment project that would convert a historic downtown manufacturing building into apartments and commercial space.

Ruger Kerstiens, CEO of Premier Property Management, presented the proposal to the Jasper City Council, outlining plans to create 60 market-rate apartments and 50,000 square feet of commercial flex space in the vacant former Indiana Furniture building located at the corner of 13th and Mill Street.

The project is the second proposal to redevelop the 119-year-old building, following Indiana Furniture’s sale of it to Krempp Corporation in 2024. At that time, Krempp had partnered with Indianapolis developer/property manager Flaherty & Collins to develop the property into apartments. They sought workforce housing tax credits and historic rehabilitation/preservation tax credits as part of the proposal, but failed to secure them, stalling the project.

According to Kerstiens, the project fell through due to its size and complicated nature. Pointing to a shared vision for rehabilitating the building, Kerstiens said he and Ted Krempp, the project manager and CFO of Krempp Construction, had been working together for a long time to develop a viable plan.

“Ultimately, we shared the same vision and passion,” Kerstiens said. “We think it’s a super neat building. It’s a staple in our downtown.”

The proposed development would include 30 one-bedroom apartments renting for $900 per month and 30 two-bedroom units at $1,100 per month, creating an average rent of $1,000. The apartments would occupy approximately 72,000 square feet of the building.

The remaining 50,000 square feet would house commercial flex space designed for small startup businesses and existing small businesses needing warehouse storage combined with office space. Kerstiens said there is high demand for this type of commercial space in Jasper.

Plans also include creating a courtyard and green space where demolished structures once stood, providing amenity space for residents.

The building, which once served as a manufacturing hub, has been largely vacant since the business relocated. Krempp Construction has already completed some demolition and cleanup work, removing smaller structures that were not structurally sound while preserving the main building.

The project requires a public-private partnership to access Lilly Endowment blight funds from the Indiana Economic Development Corporation, which requires a one-to-one local match. The developers need the city’s financial commitment by the end of June to meet state funding deadlines.

Nick Lawrence, president of The Wheatley Group, an economic development consulting firm, explained that the Indiana Economic Development Corporation has expressed excitement about the project and its alignment with their blight fund mission. The state agency wants all Lilly funds obligated by the end of July 2026.

The developers propose using Tax Increment Financing (TIF) funds to provide the city’s $1.5 million contribution. City Attorney Renee Kabrick suggested using a conditional expenditure agreement that would allow the city to spread payments over multiple years rather than providing the full amount upfront.

Additionally, recent city infrastructure improvements in the area, including Mill Street waterline work and planned paving and sidewalk projects on Vine Street, could count toward the required local match for state funding.

In addition to the potential public partnership and funding commitment, the project could also benefit from a 10-year phased tax abatement previously proposed for the site. And those savings could be included in the match, increasing the potential amount of Lilly blight funding, though the full amount was not discussed.

Mayor Ryan Craig asked whether the city could structure payments over 15 years, contributing $100,000 annually. Lawrence indicated this approach would be acceptable as long as the commitment could be documented for the state application.

Councilman Paul Lorey noted that spreading the financial commitment over a longer period would make the project more feasible for the city. “Taking a smaller bite over longer years, I think we can actually maybe pull it off,” he said.

The developers investigated historic tax credits but determined they would make the project financially unfeasible due to preservation requirements and additional costs. They also explored other state tax credit programs, but those are currently on pause.

The current proposal covers only a portion of the building, which totals approximately 180,000 square feet. The northwest corner, which housed the former company’s central office, would remain for future development pending the success of the initial phase.

“We would hope to find a future use for that but at the moment that is not included within this current development proposal,” Kerstiens said.

He added that the next phase would require another substantial investment.

Kerstiens pointed out that the project aligns with the city’s comprehensive plan goals to expand development into the Mill Street and Vine Street area and rehabilitate vacant buildings that were once manufacturing centers. The developers emphasize the building’s walkable location to downtown amenities despite being tucked away from Highway 231.

Construction would begin in 2026 if funding is secured, with completion targeted for 2028. The developers stress the tight timeline for securing state funding commitments.

“I hate to present this under the gun,” Kerstiens said, referring to the Lilly application deadline. “We’re just fortunate lucky that there’s still funds available.”

The council took no formal action during the informational presentation but indicated support for exploring funding options. Councilwoman Nancy Eckerle suggested calling a special meeting if needed to meet the state funding deadline.

“I think it is a great idea, and applaud you guys for doing it,” Mayor Craig said.