Winery gains abatement

Jul 27, 2010 — The Tribune (Seymour, Indiana)

January Freeman

Jul. 27, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- Seymour Common Council granted a 10-year tax abatement to a local winery in what one councilman called a show of support in helping small businesses grow.

But the 6-1 vote drew lengthy discussion Monday night from both sides of whether the request qualifies for an abatement of taxes.

Chateau de Pique Winery owner Greg Pardieck told council members he plans to invest $164,000 in new equipment over the next three years to expand his wine production business at 6361 N. County Road 760E, more commonly known as Lower Rockford Road.

The list of equipment includes 16 oak barrels, six large stainless steel tanks, five totes, lab testers, a filtration system and other pieces as well as $25,000 in vineyard posts and a full grain brewery.

The investment will require him to add two new full-time employees to the winery's current staff of six.

Councilman Lloyd Hudson cast the dissenting vote, saying wine production didn't fit in the city's policy of granting tax abatements to manufacturers.

"It's a stretch to think of wine production as manufacturing," he said.

Councilman John Reinhart agreed but voted yes.

"I want to be comfortable that it's manufacturing and not a retail business we're talking about," he said.

City attorney Rodney Farrow said the winery is "kind of a combination of both."

He recommended council table the request so he could study the statute further to determine whether the business would fit the criteria for a personal property tax abatement.

However, because the council approved a similar tax abatement for the winery in 2006, Councilman Mike Jordan said there was no need for the delay.

"We have already set a precedent on this," he said.

He commended Pardieck for the investment in the community.

"What we have is a small businessman who wants to make his business bigger," Jordan said. "It's not a lot of money to factories but to a small businessman it is.

"I think it's just as important to retain the businesses that we already have as it is to go and recruit new ones," Jordan added. "And as a council we need to encourage local businesses to expand and develop. I'm glad Greg has faith in our community and is doing more to make his business better."

Councilman Jim Lucas also lent his support to Pardieck's cause.

"I applaud the fact that someone is spending money in this economy," he said. "And it's good for tourism. Helping bring people in the community can't hurt."

Pardieck said he needs to order the equipment, some as early as this week, to begin harvesting grapes.

"We need this equipment for the harvest coming up," he said. "We have a fine harvest of grapes this year and if we wait too long, they will spoil."

He said the winery continues to bring many visitors to Seymour and Jackson County.

One of the more expensive purchases will be the vineyard posts, which Pardieck said will allow him to add a new grape, the Traminette variety, to his crop to produce a white wine.

Newstex ID: KRTB-0247-47375281