Greg Baker represented Mossberg Industries at Tuesday’s public hearing. Michael Khorsid of Fort Wayne purchased the company in November 2011.
JDBM LLC, a real estate holding company from Fort Wayne, asked for a real estate abatement, while Mossberg Industries asked for a tax break for new equipment. The holding company also owns XY Tool & Die in LaOtto.
At a meeting in March, Baker told the council the Garrett site handles 80 percent of Mossberg’s operation, with the balance in Ontario, Calif. Products include injection plastic molding, zip-lock ties and medical packaging, among others. Plans call for expanding product offerings.
Baker reported the cost of the new machinery at $250,000 and real estate improvements at $1.9 million.
While soliciting bids for the Garrett facility, samples showed the soil has “the consistency of chocolate pudding,” Baker said Tuesday. The base improvements added a substantial investment of $500,000-750,000.
Using the city’s point system for tax abatements, the company would qualify for a four-year phase-in for equipment and five years for real estate. Baker asked that the city offer a 10 year phase-in for the real estate, based on the increased cost for real estate improvements.
At the March meeting, Baker also said improvements conservatively could net five new full-time jobs in the next year. Fifty current jobs would be retained. Estimated wages for the workers are from $12.63 to 17.10 per hour, based on fringe benefits. Since then, two employees have been hired.
The tax abatement would cover property improvements and new equipment only, Baker explained. The company currently pays $37,000 in property taxes annually.