La PORTE — New construction is coming to La Porte, prompting the City Council to approve the use of enterprise zone investment deduction credits for HRR Enterprises.

The local, privately-owned, beef processing company has made a capital investment of $2 million for a new 35,000 square-foot facility that is expected to generate about six new jobs.

HRR Enterprises processes beef trimmings through a low-temperature rendering process to produce edible beef tallow. They specialize in producing lean, 100 percent beef protein items to sell to other processors so they may lower the cost of their ingredients and extend their beef rations. Cody Tarpley, a representative from HRR Enterprises, said, “basically anywhere that a lean ground beef item can be used is where our products end up.”

Of the six jobs that are set to be created from the construction of this new facility, two of them are expected to be managerial or office related. The remaining four will likely be in the production process. The average wage of each job is expect to be around $16/hour plus benefits.

The new facility is expected to be constructed in the Thomas Rose Industrial Park area, which is one of La Porte's Tax Increment Financing (TIF) districts.

Bert Cook, executive director of the La Porte Economic Advancement Partnership, explained the situation during the May 20 City Council meeting.

“This company is looking to make an investment in real property, 35 thousand square-foot of new construction, and it happens to occur in an allocation area, or TIF district," he said. "Because that is the case, and they would ideally use the investment reduction, they have to come before the council and ask for that permission.”

The La Porte City Planner Beth Shrader concluded that the use of the investment deduction credits would not adversely affect any TIF obligations in the allocated area.

After looking over the analysis, the City Council voted to approve the resolution, as presented.

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