The city of Washington has given final approval on incentives for the expansion of a local business. The city council has now given full approval to the creation of an economic revitalization area off Waller Drive.
The designation opened the way for the city to offer tax abatements to ISOFlex Packaging for a multi-million dollar expansion.
“This is good. The expansion will give them four more lines and that will bring in more jobs. It’s a $24 million expansion. We are thrilled to have them here in Washington. It is a good development for the city,” said Washington Mayor David Rhoads. “The other part of Isoflex was already in an economic revitalization area. The new 70,000 square foot warehouse is across the street and not in that area. We added that to the designation.”
The project is bigger than the warehouse that is already under construction, it also includes the addition of production lines. “Another thing they are doing is to add four new lines in their old warehouse and turn it into production,” said Rhoads. “We are providing them tax abatements for the improvements. We have done that before for their buildings and equipment. A couple of them are still in place. The others have already run their course.”
The project was done with the assistance of the Daviess County Economic Development Corp.
“We are all in favor of this and we are thankful they decided to put their expansion in Washington,” said Daviess County Economic Development Corporation Executive Director Bob Grewe. “They have facilities all over the U.S. That buttons it up and puts it in effect.”
The tax abatement will last for 10 years. Under the agreement taxes on improvements will be phased in, with 10% added each year through the next decade, when all of the improvements will be subject to city property taxes.
ISOFlex, which has also been known as United Films and Alliance Barrier Films, makes plastic packaging for the food industry.
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