By: Joe Strupp
The joint operating agreement company that runs business operations for The Journal Gazette and News-Sentinel of Fort Wayne, Ind. will save some $2.8 million in property taxes during the next 10 years under a tax break granted by the City officials, the former newspaper reported Wednesday.
Fort Wayne Newspapers, which is jointly owned by The Journal Gazette Co. and Knight-Ridder, owners of the News-Sentinel, obtained the tax break as part of its plans for a $36 million replacement of its printing presses, the paper reported.
Fort Wayne City Council approved the tax incentive at a meeting Tuesday night.
Under the tax abatement approved Tuesday, no property tax will be levied on the new construction or equipment the first year, with taxes phased in annually until the abatement ends in 10 years and the taxes are paid in full. The company continues to pay full property taxes on its existing buildings and equipment, the paper said.
Fort Wayne Newspapers plans to break ground by the end of 2005 on the project that will include a six-story building west of its current home, and replacement of presses that are as much as 50 years old.
Under the JOA, the two newspapers share business operations through an agreement that runs until 2050.