Council approves tax abatement

By Cecilia Fox -

TIPP CITY — The Tipp City council approved an abatement that would allow a plastics manufacturing company to expand to Tipp City, bringing 200 jobs to the area.

Gateway Plastics, a Wisconsin-based company that manufactures food containers, has requested a 12-year, 75 percent tax abatement in order to locate a new plant in Tipp City, which will next have to be approved by the Miami County Commissioners.

The $30 million facility would add 200 jobs by the end of its third year in operation, Assistant City Manager Brad Vath said.

“We’re a family company, I’m third generation…I can tell you I’ve been down I-75 and looked at every city, and getting to Tipp and getting that family-like feeling that I was raised on, you guys have it here and you have a lot to be proud of,” company president Bill Vogel said.

The company makes containers for many familiar food brands, including Nestle and Kraft.

Gateway has proposed a 300,000 square foot plastic manufacturing facility on North Third Street — an investment of $20 million in the facility itself, with $10 million in equipment and $5-10 million in inventory.

The project would also include a 2,500 foot parallel rail line and a spur to connect to the Gateway property, which would allow the estimated 30 rail cars per month to make deliveries of raw materials to the facility.

The facility will be located just north of Regal on North Third Street.

“I trust that you take our investment and the investment from the State of Ohio and make good on that in our community. We’re really glad to have you here,” councilwoman Carrie Arblaster said.

Since the facility’s payroll will be over $1 million, the city will share 50 percent of its local income tax with the school district for the term of the abatement. This is estimated to be an income of more than $124,000 per year for the district during the abatement term.

The school board voted to approve the abatement at their November meeting.

Council also approved a resolution authorizing the city manager to apply for a 0 percent interest loan for a new water tower to replace the tower on Bowman Ave.

The loan is offered by the Ohio Public Works Commission. This approximately $2.4 million project would replace the current tower, which was built in the 1930s.

By Cecilia Fox

Reach Cecilia Fox at

Reach Cecilia Fox at