Brotherhood Mutual seeks $3.5 million tax break on its planned expansion
A Fort Wayne insurance company that announced a $25 million, 100-employee expansion last week is asking City Council for more than $3.53 million in related tax breaks this week.
The application for a tax abatement, to be considered Tuesday, also provides addition information about Brotherhood Mutual’s plans and the jobs to be created within three years.
The company, which insures Christian ministries, filed plans with the Allen County Department of Planing Services last week to add about 88,000 square feet to its headquarters at 6400 Brotherhood Way — a project it said would cost about $25.5 million. The addition will include meeting and office space, making room for as many as 300 additional future employees. Thew auditorium space will be used for weekly chapel services and employee training sessions. Construction is slated to begin next month and expected to be complete by September 2020.
The application filed for council’s consideration puts the cost of the project at $21.9 million, including $21.5 million in real estate improvements and $400,000 in new information technology equipment. It also states the 100 jobs would have a combined annual payroll of about $4.8 million for an average salary of $48,309. The company currently has 427 employees and an average salary of $64,424.
Abatements temporarily reduce taxes on new buildings and equipment. If approved by council, the company would save $27,586 on equipment taxes over 10 years and $3.5 million in real estate taxes. Brotherhood would pay a total of $4.3 million on the improvements over the same period.
Founded in 1917, the company had sales of $500.6 million last year after $452 million in 2017.