Phoenix Closures asks city for tax abatement

Thursday, May 20, 2021
Phoenix Closures

Phoenix Closures plans to invest $6.8 million into its Greencastle facility at 2000 S. Jackson St.

Adding the new equipment in a project expected to begin in June and be complete by Dec. 31, Phoenix is due to add eight additional fulltime employees, according to a statement of benefits supplied to the City Council in a request for tax abatement.

The new items include injection-molding equipment and/or research and development equipment and logistical distribution equipment and/or information technology equipment.

As the first step toward the abatement, the City Council passed Resolution 2021-5 at its May meeting, declaring the Phoenix site -- which rose from the ashes of the old Greencastle Manufacturing facility -- an economic revitalization area.

The resolution notes “that in order to be competitive, retaining and attracting industrial prospects and investment to the City of Greencastle, it is imperative ... the city offer to existing and prospective industries area tax abatement as described by law.”

As the second part in the personal-property tax abatement process, Greencastle/Putnam County Development Center Director Kristin Clary said the City Council will conduct a public hearing on the resolution at its next regular session, Thursday, June 10 meeting at 7 p.m. at City Hall.

Phoenix officials noted that despite the apparent labor shortage in the area, they have been able to expand their job search net.

Entry-level positions pay $18 an hour at Phoenix, accelerating to $25 or $26 per hour after a two-year training process.

Plant Manager Bill Benson said business has been good, even growing during the pandemic.

Phoenix produces caps and lids for a variety of products, including peanut butter, salad dressing and more.

“We were making four million caps every 24 hours,” Benson said, “now we’re making seven million every 24 hours.”

According to its tax abatement documentation, Phoenix Closures currently employs 119 people with a payroll of $6,626,000.

In other business, the City Council:

-- Approved first reading of Ordinance 2021-9, establishing a Local Fiscal Recovery Fund for the City of Greencastle relative to funds expected from the American Rescue Plan Act of 2021. Second reading will be considered at a special meeting of the Council, set for 5:30 p.m. Tuesday, May 25 at City Hall. The city expects to receive more than $2 million under the plan, but cannot spend the money until a plan is in place. The ordinance stipulates that the funds can be used up to and including Dec. 31, 2024. What expenses are eligible under the plan are still up in the air, Mayor Dory said.

-- Adopted on second reading Ordinance 2021-7, which calls for the partial vacation of an alley between properties at 727 and 713 Main St. currently owned by Corvid Industries, which operates Olde Union Barb-B-Q on site. It is anticipated that the alley closure will lead to an improved parking area between the sites of the former Old Topper’s/Silver Lady Saloon on the south and D.B. Cooper’s/Champions on the north. The northwest portion of the alley will remain open to avoid cutting off the ingress and egress.

-- Heard Clerk-Treasurer Lynda Dunbar report that 281 individuals participated in the April 24 heavy trash day event at the high school parkng lot. Residents disposed of 79 tires, 17 refrigerators and 48 old-style televisions (flat screens can be put in the regular trash). In all, 16 large dumpsters were filled, Dunbar said, noting that another heavy trash day effort will be organized in the fall.

-- Heard Dunbar announce that city residents will see on-line bill paying of utility bills in the near future, urging residents to “stay tuned” for a new City of Greencastle website.

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  • "..the Phoenix site -- which rose from the ashes.." Good one Eric!

    -- Posted by Ben Dover on Sun, May 23, 2021, at 8:58 AM
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