MISHAWAKA — Jamil Packaging Corp. has taken the first step toward a three-year tax abatement on $1.65 million worth of new equipment.

Members of the Mishawaka Common Council on Monday night passed the first resolution that could lead to the abatement.

Council members will consider the second resolution at their next meeting May 19.

Amber Adkinson, economic development specialist with the city, said the new machinery should result in five new jobs, bringing the total number of employees at the Mishawaka plant to 69.

She said the company would save $83,730 and pay $42,495 over the three years.

The company makes cardboard boxes and distributes shipping supplies.

Owner and general manager David Diroll told council members the box industry is very competitive and other box-making companies in the area have gone out of business because they didn’t update their equipment.

He said the project won’t happen unless the city agrees to the abatement.

The company will not get money from the state for training without the abatement, either, according to Diroll.

He said he did consider locating the new machinery in the company’s Gallatin, Tenn., plant but he would rather put it in Mishawaka.