A Wisconsin-based company is considering a $30 million investment for a plastics manufacturing plant in Tipp City that would employ 200 people within three years.
Gateway Plastics Inc. of Mequon, Wis., would build a 300,000-square-foot facility off North Third Street near Regal Beloit. The company makes plastic containers for the food and pet industries.
“We are excited as a community to have another corporate partner coming to Tipp City bringing 200 jobs,” Brad Vath, assistant city manager and development director, said. “It is an exciting project.”
The Tipp City Economic Development Committee met in a closed session Tuesday before voting to recommend an enterprise zone agreement offering 75 percent tax abatement for 12 years.
The agreement still will have to be approved by the Tipp City Exempted Village Schools, Miami Valley Career Technology Center, the city council and the Miami County commissioners. Those organizations were being notified of the tax abatement request Wednesday.
The project also would include building a 2,500-foot rail line and a spur to the company property, Vath said. An estimated 30 cars per month would bring raw materials for the plastic products to the location.
A $20 million facility along with a $10 million investment in machinery, equipment and fixtures is proposed, according to the enterprise zone application.
The payroll for the first year of operations is projected at $1.5 million, growing to $2.25 million in the third. The average job pay would be around $30,000, Vath said.
In its tax abatement application, the company states the maximum is being requested to help offset the cost of building the rail infrastructure.
“Not only will the rail infrastructure add to the cost, it will result in a lengthier project timeline, thus postponing Gateway’s ability to commence generating revenue,” the application states.
Vath said the company was looking around the Dayton region when it contacted Tipp City. Discussions on a project have been going on about a year.
City manager Tim Eggleston said the staff has worked hard to meet city council’s goal of attracting quality jobs.
“The city is very happy Gateway has considered investing in Tipp City and pledging up to 200 jobs over a three-year period. We are grateful that they chose us,” Eggleston said.
A timeline for the abatement agreement projects the board of education voting on the abatement agreement at its Nov. 28 meeting. Approval then would be sought from the city council and the Miami County commissioners, both in December.
Schools Superintendent Gretta Kumpf said Wednesday afternoon the notice was received at the board office.
The economic development committee was told the district would receive money from the 25 percent in real property taxes the business would pay during the abatement period along with 50 percent of the local income tax because the payroll would exceed more than $1 million a year.
Kumpf said she had little comment until the board had the chance to review the proposal.
“This gives us time to meet and learn more about it,” she said.