FORTVILLE — Town officials approved continuing three businesses’ tax abatements for real estate improvements and equipment additions they’ve made in the past.
Two of the companies don’t have as many employees as they predicted they would in light of their improvements, but business and town leaders said that’s because of challenges outside of their control.
The tax abatements are for Genesis Plastics Welding, Taxman Brewing Co. and Thursday Pools. All are slated to last 10 years from their start date, beginning with a full tax break in the first year before taxes gradually phase in over the years that follow.
When the businesses first sought the abatements, they reported their investments in the improvements and estimates on assessed value along with how staffing and wages would grow. The Fortville Town Council reviews that information annually before determining whether to continue granting the abatement.
Genesis Plastics Welding, a medical equipment manufacturer at 720 E. Broadway, got a real estate tax abatement for a 27,000-square foot expansion completed in 2012. The company estimated it would lead to more than 50 new employees, but only has 10 more than it had before the abatement started.
President and CEO Tom Ryder recalled to the town council earlier this week that the company lost 46% of its business in 2015 but rebounded well. During the brunt of the COVID-19 pandemic last year, business for the orthopedic devices the company makes took a nosedive, he continued, while an increase in its biopharmaceutical product sales helped make up for it.
“Which, in COVID times, I feel really good about that,” Ryder said.
He also said he believes the company is in the final year of its tax break, meaning only 10% of the taxes on the expansion will be abated.
Genesis Plastics Welding has invested $4.27 million in its facility and equipment since 2012, Ryder said, adding wages have increased more than 5% in the last 12 months. Of the 65 employees it’s retained since 2012, wages have increased more than 40%, he continued. The company has been able to keep its employee count at the same amount since 2020 and has been trying to hire more since 2019.
“Right now it is tough to either keep, hire or retain staff,” said Randy Sorrell, executive director of the Hancock Economic Development Council, which assists businesses with applying for tax abatements. “He’s trying to hire some employees; it’s not for lack of trying.”
Taxman Brewing Co. is also short on the number of employees it expected to have after opening its restaurant in 2017 at 29 S. Main St., for which it received a real estate tax abatement. The business estimated it’d have 30 workers, but currently has about half that many.
No one representing Taxman Brewing Co. attended the council meeting, but officials figured the COVID-19 pandemic had a lot to do with that result.
“Just based on what that industry has suffered in the last year, the amount of employees that they have there are a lot less than they normally would had business been the same,” council member Tonya Davis told the Daily Reporter. “And they’re going to experience a lot more of that while our Main Street is being reconstructed.”
Work started last month on a project along Main Street between Broadway and Church Street that’s expected to last until August. It will result in a repaved street, new sidewalks, bump-outs at intersections and other improvements.
Davis empathized with Genesis Plastics Welding as well.
“They’ve had a rocky road but they’ve hung in there and done good,” she said.
She added she has experienced similar challenges in securing employees for her own business, awning company Shade By Design.
Thursday Pools, a fiberglass pool maker at 840 Commerce Parkway, far exceeded the number of employees it estimated to add after making the improvements for which it received abatements. The company currently has 88, up from 12 in 2014. It received real estate tax abatements for two additions completed in 2017 and 2020, respectively, as well as personal property tax abatements for new molds and equipment for manufacturing one-piece fiberglass swimming pools, also added in 2017 and 2020, respectively.
Co-owner and chief financial officer Bill Khamis said the company has about 18 pools going out a day.
“We’re fortunate it’s been that good,” he said.
Khamis recalled sending all employees home for two to three weeks at the start of the COVID-19 pandemic and how the company benefited from the Paycheck Protection Program created not long after.
He said Thursday Pools did not seek tax abatements for its last two additions and thanked council members for their support of the company’s existing ones.
“We’re glad to be here and keep contributing and hope for the best,” he said.
[sc:pullout-title pullout-title=”At a glance” ][sc:pullout-text-begin]
Fortville tax abatements continued
- Genesis Plastics Welding: building addition
- Taxman Brewing Co.: restaurant development
- Thursday Pools: building additions, equipment additions
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