Brooklyn Park And Minnesota Hand Out Our Money To Big Business
By Andrew Richter
Well our hard-earned tax dollars are being doled out to Bug Business again, this time in Brooklyn Park;
Another Highway 610 corridor stake has been put in the ground. Olympus Surgical Technologies America has broken ground for a new facility in Brooklyn Park. During a ceremony Dec. 13, officials said they were hopeful that it will help beckon more regional development and strengthen the state’s medical service and medical technology landscape.
On Friday, Dec. 13, Gov. Mark Dayton joined Brooklyn Park Mayor Jeffrey Lunde, Olympus executives and other project leaders at a ground breaking – or “ice breaking” – ceremony on the future site of Olympus’ 180,000-square-foot research, development and surgical device manufacturing facility.
Lunde and Dayton together? Well why not they agree on everything anyway.
The property is located 9600 Louisiana Ave., across Highway 610 from the Target corporate facility and near a building that Baxter Healthcare purchased earlier this year.
Oh so I suppose that will be yet another excuse for light rail right?
Before settling on Brooklyn Park, Olympus also considered locations for its new surgical device building in Tennessee, outside of Boston or near Cleveland. Olympus chose the site with some financial incentive from the state and Brooklyn Park.
Financial incentive? Really? Why does this particular business get special breaks? Why don’t we just cut taxes, rules, and regulations for everyone?
The Department of Employment and Economic Development will provide Olympus $1 million in forgivable loans through its Minnesota Investment Fund. That loan is possible because the company will be transferring approximately 360 jobs from Maple Grove and creating 100 additional jobs, according to DEED.
So $1 million in a “forgivable loan? “So here’s $1 million….just take it if you “promise to transfer jobs.”
Dayton said the investment is worthwhile because medical technology is “one of the cornerstones of Minnesota’s economic future,” and Olympus will be part of a “nucleus” of medical technology firms that will attract more companies to the state. “That’s exactly the strength of Minnesota,” Dayton said after the ceremony. “That’s exactly why they chose Minnesota, and the financial incentives that we were able to offer were part of the package.”
Really Governor? What happened to the rich paying their fair share?
State support for the project coincides with Dayton’s November announcement that Highway 610’s expansion from County Road 81 to Interstate 94 – a project that has been delayed for years – will receive funding from the Corridors of Commerce, a legislator-approved program intended to decongest bottlenecks along highway corridors. The Highway 610 freeway project is expected to begin late next year and could cost up to $131 million.
Along with state funding incentive, Olympus is expected to earn $1 million in project development funding from Brooklyn Park. Under the agreement, the city could reimburse Olympus for up to $1 million in qualifying development expenses, paid for by an existing Tax Increment Finance District. Reimbursement is allowed only for expenses related to “minimum improvements” for the development’s infrastructure, according to October Economic Development Authority meeting documents.
So they get a $1 million kickback from the city taxpayers!
The development is expected to provide the city $265,000 in annual tax revenue, which could be added to the city’s general fund by 2016, according to a city staff report. That would be a large increase from the $17,000 that the city currently earns in tax revenue from the property, which is owned by Liberty Diversified Industries.
And I’m sure you’re going to give that back to the taxpayers right Mr. Mayor, or will you just increase spending like the council voted to do two weeks ago?
While making his remarks during the ceremony, Lunde acknowledged that some areas of the city are struggling, and that the city must continue working with businesses of all sizes and reach out to the community.
No, your job is not to reach out to them. It is to create a climate in which they can be successful, not pick which businesses you want to “reach out to.”
After the ceremony, Lunde said the Economic Development Authority could bring forward plans within the next few months for a business hub that would help new Americans become entrepreneurs.
Comprised of city council members and the mayor, the EDA will have a January discussion about the appropriate use of EDA funds, Lunde said. The EDA has denied funding to some projects, Lunde said, but EDA members expressed a need for the discussion after it offered project funds to Baxter Healthcare, Target and Olympus.
How about all the other businesses???? Where’s their project funds???
Completion of the Olympus construction is expected in September 2014, and there is space for an additional 100,400-square-foot building that could be added in the future, said Casey Hankinson, a vice president of development for Ryan Companies, who is overseeing the development and construction of the facility.
Folks, this is not capitalism. It’s not even crony capitalism. This is downright fascist! When government and business get together WE ARE ALL LOSERS!!!