Berry Plastics is asking for a tax abatement on a project it has nearly finished.
In June, Berry Plastics applied for an abatement that would reduce the taxes owed on an addition being built onto its tool shop near Locust Creek Drive at St. Joseph Avenue.
On Wednesday, the Vanderburgh County Council learned that between 75 percent and 80 percent of that work has been completed. Berry began the project in March.
The main purpose of a tax abatement is to encourage a company to make an investment that it may not have made otherwise.
To ensure there is reciprocity, a business is supposed to ask for the incentives before the work has begun.
The County Council, though, has the right to waive that requirement. The council will consider the matter at its regular meeting in September.
Marsha Abell, council president, said she hasn't decided what to do with Berry's request.
"If there is a reason why this happened, I would like to know," she said. "If they are just flippant about it and think they are entitled to it - that's another issue."
David Berkman, a Berry representative, told council members that he was not sure why Berry had applied for the abatement months after work on the addition had begun.
"I want to assure you it will not happen again," he said. "And we appreciate your consideration."
The new addition will replace a tool shop the company runs in the Chicago area. Berry is asking for an abatement in two parts.
One would be on the building itself, expected to cost about $1.1 million. The other would be on equipment, expected to cost $1.9 million.
If the abatement is approved, taxes on the real estate will be phased in over eight years, and taxes on the equipment will be phased in over nine years.
When the project is complete, Berry plans to hire 18 permanent and two part-time workers in Vanderburgh County. The number of permanent workers may grow to 25 in the following years.
Tax abatements have benefited Berry Plastics greatly over the years. In 2007, for instance, they saved the company about $700,000 of the taxes it would have owed the City of Evansville.
Berry Plastic's latest abatement came last month. the city voted to grant one on $27.9 million worth of equipment Berry plans to add at its headquarters, at 101 Oakley St. The abatement will allow Berry Plastics to avoid paying the full taxes owed on that equipment - to be used in building food containers - for nine years.
The company plans to hire 27 workers by the time the project is finished and 60 or more within five years of completion.