Props to the News and Tribune's Daniel Suddeath, who is tweeting about the city's offer to General Mills.
New Albany City Council to consider $7 million bond package Tuesday to update Pillsbury Plant in hopes of keeping facility open.
The bond incentive resolution for General Mills deal states the Pillsbury plant in New Albany would have to stay open a min. of 5 years.
If resolution approved, New Albany Redevelopment Commission and NA Council would have to take additional votes, same as any bond issue.
According to city, Pillsbury plant paid $661k in property taxes in 2014 and $7 million over last decade.
The financing plan would be a mix of tax-increment financing and possibly EDIT money, per David Duggins, city economic development director.
Please note that the CITY would be borrowing the money, but the COUNTY would receive the bulk of the taxes, so the historic tax bills don't have quite as much relevance.
ReplyDeleteThis amounts to corporate welfare and is nothing but political window dressing since the decision to close the New Albany plant is about efficiencies in their operating bottom line. The New Pillsbury Dough Boy Gahan can not magically create a reason for General Mills to change their operational decision with a meaningless and as Randy Smith so accurately pointed out, a tax losing proposition for the city of NA. Once again, this Incompetent administration doesn't have the foggiest notion of what is long term sustainable economic development. It's called investing in your local risk takers and businesses and retraining your local labor market. I think Gahan needs to go back to selling Christmas trees since he thinks he is santa claus for the doughboy.
ReplyDeleteTim kinda nailed it. This will not influence General Mills, but is precious campaign fodder. However, I do not fault the Hail Mary. Good on 'em. It's worth a shot. Maybe Mayor Baylor would offer the appropriate $11MM. :)
ReplyDeleteDough Boy Gahan knows the city can't float that package anyway, no wonder his veneer business was not so successful, he has no grasp of financial matters. He should go back to selling Christmas trees since he wants to be Pillsbury's santa
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