Owens-Brockway gets $12.2 million tax abatement for new equipment

Mar 10, 2010 — The Herald Bulletin

Brandi Watters

Mar. 10, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- ANDERSON, Ind. -- The Madison County Council approved a $12.2 million tax abatement for a Lapel manufacturer Tuesday.

Glass container manufacturer Owens-Brockway approached the council with the proposed abatement, hoping to purchase $12.2 million in new equipment for the Lapel plant located at 2481 S. Brookside Road.

Plant manager Randy Mason said the plant is requesting a 10-year abatement and that the Lapel plant has the highest property tax compared to the company's other plants across the Midwest.

The abatement would apply only to the $12.2 million in new equipment the company intends to purchase this year, and would not reduce the current taxes being paid to the county, County Council President Bill Savage said Tuesday.

The abatement will result in a tax loss to the county of about $851,065 but will keep 216 jobs in Madison County, Savage argued.

The tax abatement is phased in, and over the next 10 years, the county would collect $490,332 in taxes on the new equipment purchases, according to documents provided by Owens-Brockway.

Councilman Mike Phipps said he supported the abatement because the company employs over 200 people in a town of 1,800 and said the amount equates to General Motors' impact on Anderson.

The sole "no" vote on the measure came from Councilman John Bostic, who argued that tax abatements are "bankrupting this township."

Bostic also challenged the company on its minority-hiring practices.

"I get tons of telephone calls that you're not hiring minorities there," Bostic said.

The company responded that 8 percent of its staff of 216 are minority employees.

Council members voted to cap the abatement at $15 million.

Councilman Gary Gustin voted to approve the abatement but said he'd like the council to reduce the 10-year term of abatements in future requests.

Owens-Brockway abatement by the numbers

Tax abatement: $12.2 million

Abatement term: 10 years

Taxes lost by county: $851,065

Taxes collected: $490,332

Jobs retained: 216

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Contact Brandi Watters 640-4847, brandi.watters@heraldbulletin.com

Newstex ID: KRTB-0344-42742561