Two manufacturers in German Township have announced plans to add jobs as they expand their operations.
On Monday, Peer Foods Group announced they are finalizing plans to construct a 53,762 square foot distribution facility warehouse at 3013 W. Presidential Way, Edinburgh. The $13.6 million facility will result in the creation of 11 new jobs that pay an average of $17.13 an hour, chief financial officer Tom Sutton said.
Meanwhile, the Georg Utz Inc. plans to invest $3.4 million in new manufacturing equipment at its facility off County Road 250W near Edinburgh. As a result, 14 new jobs with an average salary of $16.75 an hour will be generated by the end of 2020, company finance manager Penny Grubbs said.
Peer Foods, a Chicago-based firm that acquired Mariah Foods in Columbus, produces a variety of meat products, while the Switzerland-based Georg Utz, Inc. makes custom and standard plastic containers for several different purposes.
Both Sutton and Grubbs revealed their company’s plans while outlining their requests for tax abatements Monday to the Bartholomew County Council. But since it was only a work session to receive information, council votes aren’t expected until their next regular meeting at 6 p.m. on Oct. 8.
A 10-year tax abatement is being sought for Peer Foods for its planned warehouse, as well as a five-year abatement for the investment of $2.4 million in new logistical and information technology equipment, Sutton said. The company is also asking that the property be designated as an economic revitalization area.
The company is working with retired businessman Bob Haddad, Sr. to finance the warehouse in a triple net lease arrangement. That means Peer Foods would pay all the expenses of Haddad’s property including real estate taxes, building insurance, and maintenance, Sutton said. Because Peer Foods is covering these costs, which would otherwise be the responsibility of Haddad, the rent is generally lower than what a property owner charges in a standard lease agreement.
If the council agrees to the five-year tax abatement request from Georg Utz, Inc., it will also help retain 87 existing jobs, Grubbs said. Since 2008, the council has agreed to provide the company tax abatements six earlier times, and the company has hired more employees than it had promised after each abatement, Grubbs said.
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The Bartholomew County Council is expected to vote next week on the tax abatement requests from both the Peer Foods Group and Georg Utz, Inc.
The council will hold their regular monthly meeting at 6 p.m. on Tuesday, Oct. 8. Their fourth floor chambers are in the Bartholomew County Governmental Office building at Third and Franklin streets.
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