The Merrillville Town Council was receptive Monday to a local manufacturer’s request for tax abatements as it looks to possibly spend between $10 million and $17 million on an expansion and new equipment.
Polycon Industries Inc., a maker of plastic containers located at 8919 Colorado St., is seeking both real and personal property tax abatements from the town, its spokesman, attorney Richard Deahl, told the Economic Development Commission and Town Council during back-to-back meetings.
“The company was presented the option to potentially get new business that would require a significant expansion to the plant and the purchase of new equipment,” Deahl said.
He said Polycon is in the midst of negotiations. He said if awarded, the new contracts would result in about a 30 percent increase in business.
William Hansen, chief financial officer for the company, said if the company wins the work it would like to begin the expansion as soon as possible. Hansen said the work would only be done if Polycon gets the new business.
Deahl said the 165,000-square-foot facility would be expanded between 100,000 to 200,000 square feet to the east at a cost of $4 million to $8 million. He said the larger expansion would bring much of the inventory now stored outside in trailers inside the building.
He said between $6 million and $9 million would be spent on new equipment to accommodate the new business.
He said the company now has 106 employees working over three shifts with an annual payroll of $3.1 million. The new business would necessitate the hiring of 25 to 35 new employees with the possibility of more in the future.
The Economic Development Commission recommended approval of the abatements and town officials said they will have a resolution allowing the abatements available for a vote at the next council meeting, on Jan. 26.
Councilman Shawn Pettit, D-6th, gave his seal of approval to the request.
“I’m 100 percent behind this project. They’ve been fantastic neighbors, are a clean industry and the building is bursting at the seams,” Pettit said at the EDC meeting.
“This is much needed,” he added.
Pettit had one request of the company; that it hold a job fair with a goal of hiring Merrillville residents for at least 10 percent of its new work force, provided they’re qualified.
He also said Polycon would need to sign a project labor agreement with the Northwestern Indiana Building and Construction Trades Council. The agreement requires that only Northwest Indiana residents be hired during construction, alteration and repair projects performed within a tax increment financing district and on properties granted tax abatements.
Karen Caffarini is a freelance reporter for the Post-Tribune.
