Tax abatements continue to provide breaks to about a dozen projects in Bloomington, but the city’s Department of Economic and Sustainable Development estimates those projects have brought more than $34 million in new salaries to the local business
community over their lifespan. The biggest contributor has been Cook Pharmica, according to Danise Alano-Martin, the city’s director for economic and sustainable development, who presented annual review of tax abatements Wednesday night before the city council.
The medical device company, which was granted 10-year abatements on its property and real estate in 2004, has poured almost $150 million in improvements into its facility at 1300 S. Patterson Drive. An abatement offers
property owners deductions on the assessed value of a property after improvements, usually on a sliding scale, with a tax break of 100 percent coming in the first year. In the case of Cook Pharmica, city officials believe the tax break created the incentive that spawned $30 million in salaries for 444 employees, well above Cook’s original estimate of about $9.5 million for 200 employees when the abatement was granted.
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All but one abatement in the city’s portfolio was regarded as “significantly compliant” in meeting its promises associated with the tax break. That one project was a Habitat for Humanity house, but the city intends to be lenient with the owner and not pull the abatement, Alano-Martin said.
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http://www.heraldtimesonline.com/stories/2013/06/29/news.tax-abatements-credited-for-34m-in-local-salaries.sto
