WRIGHT TWP. — Construction of Pepsi’s 500,000-square-foot Gatorade distribution center began in November...The $37 million capital investment by Pepsi will add 93 new jobs to a workforce of 236 already employed at the company’s manufacturing plant in the park. State, county and local taxing authorities agreed to tax incentives to ensure the project.
Just how much Incentive did PepsiCo get. Under the terms of the Local Economic Revitalization Tax Assistance plan, the county would waive an estimated $52,741 in annual property taxes per year between 2010 and 2016....Pennsylvania’s Department of Community and Economic Development granted $1.25 million for the project, primarily in infrastructure costs for roads. Luzerne County donated a $100,000 grant to the project....The seven-year LERTA will reduce property taxes for Pepsi by about 50 percent and kicks in after the Keystone Opportunity Zone status expires in three years. KOZ sites have temporary state and local tax breaks. The combined tax breaks guarantee Pepsi reduced tax status for 10 years. Rapid Edward tells us that The Greater Wilkes-Barre Chamber of Commerce supported efforts to obtain a $1.25 million funding offer for the project from DCED that includes a grant of up to $1 million through the Infrastructure Development Program and a grant of up to $250,000 through the Opportunity Grant Program.
I just got my county/municipal property tax bill for 2007 and will pay the full amount. We've done many improvements to the property over the years keeping local contractors busy without any government loans or tax breaks. How did we do it? Remember this and all the other sweetheart deals when you get your new valuation if the reassessment is ever done.
Capitol Ideas suggests a payoff may be involved:
What the statement failed to mention is that Rendell will now have 36 cases of Diet Pepsi delivered to the governor's mansion each week until he leaves office.
Let's see a handful of contractors compared to 93 new jobs and the continuation of 236 jobs with all those people paying income tax, eating out, buying in the local economy, possible owning homes...... I love ya gort but I opt for the Pepsi deal.
ReplyDeleteI'm touched Much but my point is nothing seems to get done around here without some sort of property tax break. It comes across as balckmail. "Forgive our taxes or we'll build somewhere else." Home owners and small businesses without political connections pay their fair share and so should big business.
ReplyDeleteHi Gort,
ReplyDeleteWhile I agree with you in concept the reality is if we don't offer them the breaks some other city, borough, township and in some cases country will. If we want the jobs we have to be competitive. It does seem like blackmail, but are blackmailing a store or contractor when we shop around for the best price?
the blackmailing is the direct result of PA's fragmented government and lack of good planning. But that's okay so long as every town has it's own police department with three officers and we keep our rivalry football games on friday night (or saturday afternoon).
ReplyDeleteRemove the ability to hold one community hostage and you remove the need for property tax breaks to encourage investment. But that's my experience as a planner talking. Ignore me.