BY SUSAN BROWN, Times of Northwest Indiana
sbrown@nwitimes.com
MUNSTER | Pepsi Americas will benefit from a 10-year tax abatement thanks to the 32 well-paying jobs the company will need to create for its new bottling process.
Cost for the new equipment alone is more than $11 million but the total improvement comes to $19.2 million.
The Town Council approved the measure at its regular meeting Monday.
The new production line will allow the company to fabricate Aquafina bottles on site as opposed to shipping in empty bottles. It's expected to be operational sometime during the first quarter of the year.
The company's original proposal anticipated creating 17 new jobs. The number increased to 32 following a review by the company. The additional jobs made the company eligible for a 10-year abatement, up from six.
Assistant Town Manager Matthew Fritz said the new jobs pay an average annual salary of $36,000 before benefits and overtime. The new positions include a manager at a salary of $55,000, two supervisors at $45,760 and two transport drivers at $52,000. Hourly wages range from $15 to $18.
Property taxes on Pepsi's existing operations will remain unchanged, but the company will save $720,000 in taxes on the new bottling unit over the 10-year period of the abatement.
In return, the company's application says the town will benefit from the job creation, enhanced job security for current employees and the likelihood of the town being considered for other projects.
The company also will be responsible for contributing $192,000 toward the town's growing public art collection, the second highest amount since the town made the contribution a part of its tax abatement program in 1998.
Fritz said town leaders suggested the company consider Centennial Park as a site for the company's second public art project. The company's first public art project is located at its plant on Calumet Avenue. Its cost was $51,000 in comparison to the $192,000 for the pending artwork.