With members remarking how the business has progressed, the Brazil City Council approved new tax abatements for Indiana Powder Coatings on Tower Road Wednesday (June 14) evening.
The board approved a real property abatement for a new 38,000-square-foot steel warehouse for storage of raw and finished materials for an estimated $1.6 million. A personal property abatement was approved for logistic equipment estimated at $400,000.
The Brazil Redevelopment Commission recommended the abatements after its meeting on May 17.
In presenting the abatements to the council, City Attorney Traci Orman noted that the business currently has 25 employees and plans to add six permanent full-time positions.
“It’s been a rough go mainly with just getting in equipment,” Human Resources Manager Jim Holtel commented about the business on the heels of COVID-19. “We’re probably a year behind where we thought we would be.”
Holtel detailed that small-scale production began in January, in that it is at about 25-30 percent of its wanted capacity. Even with it all being slow, there is an optimistic outlook on the business’ potential.
“It’s a very impressive facility,” Mayor Brian Wyndham said about improvements made to the existing structure. “What you guys have done with that old building is phenomenal.”
Councilman Shane Litz queried both abatements lining up at seven-year durations. Orman responded that having the real property at 10 years accounts for its longevity. Taking direction from Wyndham, the council agreed on 10 years for the real property and seven for the equipment.
With this being its first consideration, the council adopted resolutions 2023-2 and 2023-3 for the real property and personal property, respectively. The final approval of the abatements is expected next month.