Tax abatement moves Woodworks development forward - Dubois County Free Press, Inc.

An AI-created rendering of what the development could look like. Kerstiens presented this image during the meeting to help the commission see the company’s vision for the development. Architectural renderings have not been completed.

Jasper–The Jasper Economic Development Commission approved a 10-year phased property tax abatement for Woodworks LLC’s redevelopment of the former Indiana Furniture/Indiana Desk building on Mill Street, scoring the project 96 out of 100 points at Wednesday’s meeting.

The board’s vote was unanimous.

Woodworks LLC is a partnership between Premier Property Management and Krempp Construction, which has owned the 119-year-old building since acquiring it from Indiana Furniture. An earlier partnership between Krempp Construction and Indianapolis developer Flaherty & Collins fell through in 2024 after failing to secure historic and workforce housing tax credits.

The project would convert the building into 60 to 64 market-rate apartments — split roughly evenly between one- and two-bedroom units — with average rent targeted around $1,000 a month. About 50,000 square feet of the building’s north wing would become commercial “flex space” aimed at small and startup businesses. Amenities are planned to include a resident lounge, small workspaces, an exercise area and storage lockers.

Real property investment alone exceeds $16 million, a figure the board used to award the project 40 scoring points under its real-property investment category.

The project depends on a $3 million commitment from Lilly Endowment Inc. blight remediation funds, administered through the Indiana Economic Development Corporation, contingent on a dollar-for-dollar local match. Kerstiens said the state agency has supported the project.

The local match is built from three pieces:

$1,032,500 in tax increment financing (TIF) reimbursement for eligible infrastructure costs, including concrete, landscaping, sitework, utility upgrades, and rock and asphalt work.
$386,910 in credit for recent city infrastructure investment — stormwater, street and water work already completed or budgeted in the project area.
The value of the tax abatement itself, which was not finalized before Thursday’s scoring.

City Attorney Renee Kabrick pressed Kerstiens on what happens if the abatement’s dollar value falls short of covering the remaining match — roughly $1.6 million based on the two confirmed pieces above. Kerstiens said that shortfall would become “a conversation” with the Lilly Endowment program, though he mentioned they may have some wiggle room or ways to accommodate any shortfall.

The board awarded points across several categories: 40 for real property investment over, 21 for new employment wage level (calculated at 300% of the state minimum wage), and 10 for infrastructure already in place. It added 15 bonus points for innovation, use of an existing vacant property, and use of local contractors and suppliers.

Kerstiens said the team aims to finalize incentive structure and financing commitments through 2026, begin construction in 2027, and complete the project by the end of 2028 — a deadline driven by state fund allocation rules on the Lilly Endowment money.