Two longtime Valparaiso businesses are planning to expand, but only one appears to be getting the help it wanted from the city.
In Touch Pharmaceuticals packages medications for long-term care facilities in Indiana and nearby states. Now, it's looking to replace some outdated equipment used in the packaging process.
Valparaiso Development Director George Douglas says the company has grown to 130 employees since it began 20 years ago. "So this is truly a local company that started here and has grown here," Douglas told the city council Monday. "A key competitive advantage has been continuing to invest in innovation and technology to allow their business to grow and to add employees."
The city council agreed to grant a tax abatement on the estimated $1.3 million in new equipment. It will phase in property taxes over five years, resulting in a savings of about 56 percent for the company. In return, In Touch promises to add 10 new jobs, at an average salary of more than $70,000.
President and CEO Rick Rondinelli said the company has to grow in order to survive. "We are in a high-growth field, I do believe, and we're primarily, as mentioned, in Indiana, but we also service Illinois and Michigan," Rondinelli told council members. "I think we have opportunities in Kentucky and Ohio, as time goes on."
However, the council narrowly rejected an abatement request from G.E. Marshall. The site work company wanted to phase in property taxes on a new headquarters building.
Co-owner Ross Marshall said it would double the headquarters' size to at least 12,000 square feet. "We're going to expand greatly in the conference area room, a lot larger kitchen, outdoor dining," Marshall explained.
It would also include a training center, where employees could complete written tests and other paperwork that jobs may require.
But G.E. Marshall would only guarantee to add three new office jobs, which drew some hesitation from Council President Robert Cotton. "Generally, we value additional jobs — you know, the high-paying jobs — as being something that we condition the abatement on," Cotton told Marshall.
The council ultimately rejected the abatement request by a vote of four-to-three, with only Peter Anderson, Jack Pupillo and Diana Reed voting in favor.
