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Council finds most tax phase-in applicants compliant; PGP International case referred for follow-up
Summary
Council voted to find the majority of companies in compliance with their tax phase-in commitments but flagged two that need follow-up; PGP International's changed project scope and late/unsigned paperwork prompted requests for legal review and a return to council.
At the Sept. 4 council meeting the Evansville Regional Economic Partnership's Patrick Hickey presented the 2024 tax phase-in compliance report (payable in 2025) and recommended that the listed companies be found in compliance.
Council moved, named the companies recommended for compliance (including ByteSol Resources, EFP LLC/EnviroPlas, Lightway Machine, RJ Properties/FedEx, SEZ Holdings, Polyram, Torsion Group, Wabash Plastics and West Industries) and approved the motion by voice vote.
Hickey noted two companies presented "special circumstances." One of those was PGP International. Hickey said COVID altered PGP's originally approved 2020 project: a building expansion did not proceed, reducing the capital investment from $13.3 million to $6.8 million, although the company added a new manufacturing line that EREP and the assessor consider within the project scope. Hickey said he rescored the application using the reduced investment and still arrived at the same recommendation (a seven-year phase-in) under the council'approved scoring sheet.
Brad Jenkins, PGP's vice president of operations, told the council PGP moved production from California to Evansville, added 11 employees since 2022, and believes the revised investment and job outcomes should qualify. Council members and staff asked for legal guidance, noting that some compliance statements on the paperwork were unsigned and that tax-phase approvals typically rely on timely filing and pre-approval. Several council members asked staff and counsel to examine whether an amendment, late filing or a new application is required before any deduction is allowed.
The council directed EREP and county staff to work with PGP and its attorney to clarify documentation and return with a recommended path; no change to the compliance finding for the other companies was made at this meeting.
Next steps: staff will obtain missing signatures where appropriate, prepare amendment language if needed, and return to council with the PGP matter on a future agenda.
