Council ends PHM Brands tax abatements after company fails to meet statement-of-benefits
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Summary
Michigan City Common Council unanimously approved two companion resolutions terminating assessed-value deduction tax abatements for PHM Brands LLC after staff found the firm failed to submit required documentation and apparently vacated its local operations.
The Michigan City Common Council on Monday unanimously adopted two companion resolutions terminating assessed-value deduction tax abatements for PHM Brands LLC for real and personal property, concluding the company did not meet its obligations under the statement of benefits.
What the council voted: Two resolutions were introduced by Councilman Beatrice and each passed on voice votes with 9–0 tallies. The first terminated an assessed‑value deduction tied to personal property; the second terminated the assessed‑value deduction tied to real property. The actions cited Indiana Code procedures for termination when required benefits are not met.
Background and city findings - Staff review: Economic development staff reported PHM Brands came to Michigan City in November 2020 and requested two tax abatements. The company had committed to creating 50 jobs and investing about $7 million for a building expansion. Staff said PHM completed an expansion but did not submit required documentation to trigger abatement steps and later ceased local operations. - Ownership change: Staff reported the business was sold and the parent office told city officials that operations "didn't pan out as they were supposed to" and the company closed and sold the property. As a result, staff found no basis for a continued abatement and recommended termination so the assessed-value deductions are not left active should the property change hands.
Council action and rationale Council members said the terminations were standard enforcement of abatement conditions and signaled the city follows up annually to ensure companies meet their statement-of-benefits commitments. Councilman Beatrice said the action "just needs to be removed" if the company is no longer in compliance.
Outcome and next steps Both resolutions passed unanimously. Staff said if PHM or a new owner returned and met the required statement-of-benefits in the future, they could apply again for abatements under the standard statutory process.
Ending note The termination clears the city’s abatement records for the property and ensures the abatement is not an active entitlement for any potential new owner without a fresh application and approval.
