From the Anderson Herald-Bulletin:
The Nestlé plant in Anderson could invest $166 million to increase production and create another 104 jobs, but that hinges on two variables.
The Anderson City Council must give final approval of a $14 million tax abatement. And the leaders at Nestlé’s world headquarters in Switzerland must decide whether they want to expand in Anderson or in another American city.
During a Thursday meeting, the council voted 9-0 in its initial approval of the abatement, with several members saying it is worth it because of the job creation and $14 million in property taxes it would bring in over 20 years. The council will make its final vote on the issue in its September meeting, where the public can comment on the abatement and expansion.
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If the expansion takes place here, the additional investment in equipment would mean the company would pay an extra $28 million in property taxes over 20 years.
The abatement Nestlé is requesting would cut that bill in half. The six-year tax abatement would save the company $14 million, but the city would still receive $14 million in payments from the company over 20 years.
If the expansion occurred at a different Nestlé plant, the local Nestle plant would pay $4.5 million in property taxes every year, and in 20 years that would add up to $90 million.
If the expansion takes place here, the average annual tax payments would rise to $5.6 million a year and $112 million over 20 years.
“We are $1.1 million (a year) better off cutting this deal, not counting the 104 jobs,” Winkler said.
Even if the city doesn’t get the full amount of taxes it could get from Nestlé, there are several benefits to this potential project, he noted.
As part of the negotiations between Nestlé and the city, the company has agreed to pay an abatement fee of $567,000 over the six-year period of the tax abatement. The money would go to the Anderson Redevelopment Commission, which would use it to redevelop the recently demolished Edgewood Plaza, Winkler said.
Eicks said this abatement fee is unprecedented in Anderson.
“They (Nestlé) didn’t have to agree to that, just like we don’t have to agree to the abatement,” he said. “It’s a win-win.”
The city would also get back $2 million in tax increment financing funds held in a debt reserve fund. Since the money isn’t being used, Nestlé would release that money back to the redevelopment commission for other use, Winkler said.
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http://heraldbulletin.com/business/x1685965898/Nestle-could-invest-166M-and-add-104-jobs
