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Egg Innovations Inc. did not get the 10-year abatement Thursday they sought from the Kosciusko County Council.
Attorney Mike Armey, representing the company, said Egg Innovations came to Kosciusko County in 2000 and bought some real estate. They began doing business with 20 employees and discovered the county was a good location to distribute their products to the East Coast.
Now, Armey said, they want to expand the company here and add 25 jobs; all but one would be hired from the local community. With the tax abatement, he said, they will improve the real estate and buy new equipment that will also meet requirements set by the Food & Drug Administration.
"The eggs are for supplying specialty markets in large metropolitan areas," said Armey. The eggs are low in cholesterol, he said.
But to help the business expand, Armey said, they need the county council to designate the property as an economic revitalization area for 10 years for the real estate and equipment.
Council vice chairman Brad Tandy asked during what period of time would the 25 jobs be added, and he was told they would be hired by the end of the year. The 25 jobs would be full time or the equivalent of 25 full-time jobs.
One farmer, councilman John Kinsey said, told him he needs a new tractor and should be entitled to a tax abatement for that new tractor. Kinsey said if they approved Egg Innovations' request for a tax abatement, they might be "opening a can of worms."
Kosciusko County already has several large egg-producing companies in the county and they never asked for a tax abatement, councilman Tom Anglin said.
Armey disagreed, saying Creighton Brothers asked for a tax abatement previously.
"It was not a tax abatement," Anglin said. He said former Creighton Brothers general manager Eddie Creighton told him Thursday they never asked for a tax abatement.
When asked what the base pay for the employees would be, company president John Brunnquell said it would be $7.50 an hour and is comparable to what they pay their employees in Wisconsin. He also said their sales are doubling every year.
There were no remonstrators to the tax abatement.
Harold Jones, councilman, said he would be more receptive to a tax abatement if they asked for five years rather than 10.
Councilman Larry Teghtmeyer said he had difficulty granting the tax abatement with the wage rates so low. He said he appreciated the company considering Kosciusko County.
"I really struggle with this issue basically because of the wage rates," he said.
Armey said if the council approves the economic revitalization area, the council can revoke it if they determine the company isn't meeting the goals they said they were going to meet. He said while wage rates are low, if the company can't find employees to work for them at those rates, then the company will have to re-evaluate its goals.
As for the abatement itself, Armey said, "you don't give away anything you got, you just phase it in."
With the low wage rate, council chairman Jim Tranter said, the taxes from income also would be low.
Tandy made a motion to declare a economic revitalization area for the business but there was no second and the motion died. No other motions were made.
Tranter said the council was sorry they couldn't grant the abatement but he hoped the company will continue to look at the county for their business "because there are advantages here."
In other business, the county council:
• Approved the 2002 Kosciusko County Convention and Visitors Bureau's budget totaling $339,000. Money for the CVB's budget comes from the hotel and motel tax.
• Approved three transfers for the Kosciusko County Sheriff's Department - $11,916.82 from the Law Enforcement And Forfeiture Grant Fund to a deputy account; $15,420.34 from LEAF Grant Fund to a deputy account; $8,000 from evidence account to capital outlay. Sheriff Aaron Rovenstine said the $8,000 will be used to purchase new surveillance and undercover equipment.
• Approved transfers of $2,578 and $4,684 from two separate Title IV-D secretary accounts to another Title IV-D secretary account and a part- time account for the prosecutor's office.
• Approved a transfer of $1,000 from the prosecutor's witness fees account to the court reporter services account, and $800 from the maintenance agreement account to the office equipment account.
• Approved two salary ordinance amendments for the prosecutor's office.
• Approved the reappointment of Rebecca Lehman to the Nappanee Library Board for another four-year term.
Members of the Kosciusko County Council are Jim Tranter, Brad Tandy, John Kinsey, Tom Anglin, Harold Jones, Maurice Beer and Larry Teghtmeyer. They meet at 7 p.m. in the county courthouse, Warsaw, on the first Thursday of every month.
