City approves continuation of tax relief – The Daily Reporter
FORTVILLE — Authorities are allowing three Fortville businesses to continue tax breaks for building improvements and equipment additions they made.
One of the companies still does not have the additional jobs that its expansion was supposed to create. Its chief and a city official, however, note that the incentive is almost complete and point to other progress made by the company.
The tax abatements are for Genesis Plastics Welding, Thursday Pools and Taxman Brewing Co., and phase in taxes for certain real estate and equipment over a 10-year period.
When companies first applied for the abatements, they reported their investments in improvements and assessed value estimates, as well as workforce and wage growth. The Fortville City Council reviews this information annually before determining whether to continue granting the breaks.
Genesis Plastics Welding is in the final year of the reduction it received for the expansion it completed that increased its facility at 720 E. Broadway St. from 15,000 square feet to 42,000.
The company, which makes medical equipment, said it had 65 employees when it got the abatement. While the expansion was expected to create jobs, the company now has 54, according to documents filed with the city of Fortville.
President and CEO Thomas Ryder told city council members earlier this week that Genesis Plastics Welding has continued to recover since 2015, when it lost significant business volume. He added that the company had a good year in 2020 despite the COVID-19 pandemic, but was mired in 2021 by supply chain issues that plagued and continue to plague much of the economy.
The last year of the abatement will give the company a tax savings of about $4,200, Ryder said.
Since 2012, the company has made more than $4.4 million in investments in plant and equipment, he also said, adding that all profits are plowed back into the business.
Ryder pointed out that the company pays all taxes on its real estate outside of the expansion and on equipment.
The company is looking to invest between $750,000 and $1 million to expand its cleanroom manufacturing operations, he continued.
“My hope is to do that at the end of the year, when we get out of the supply chain rut that we found ourselves in,” he said.
Genesis Plastics Welding has increased production wages by more than 22% in the past 12 months, according to Ryder, and laid off just five employees in 2021 despite significant financial losses.
“We’re trying to hire better staff and pay better rates today to continue that outward trend,” Ryder said.
He said wages for the 54 positions that have been retained since the cut began in 2012 have increased by almost 95%.
“Everyone was brought up,” he said. “We recruit high-level technicians and engineers for the cleanroom and medical device sector.
All of this amounted to a compelling argument for City Council President Fritz Fentz to vote in favor of continuing the reduction.
“It’s past year, and they’ve been a good partner in the community,” Fentz said.
The board unanimously found the company to be in substantial compliance for its reduction, as they also did for Thursday Pools and Taxman Brewing Co.
Thursday Pools, 840 Commerce Parkway, receives four tax abatements – two from 2014 and 2018, respectively, for new molds and equipment to make its one-piece fiberglass pools, and others for construction additions from those same years. .
Taxman Brewing Co. got its abatement for the restaurant it opened at 29 S. Main St. in 2017.