Target Gets Free Money to Move Jobs
By Andrew Richter
Well, here’s Brooklyn Park’s version of corporate welfare. From the Sun Post;
The company has been constructing two new eight-story buildings since 2012, and adding the new employees will mean Target could meet criteria to receive full tax abatement under an agreement with the city.
Oh isn’t the great news!!!
The company has not hit its construction and employment targets to receive reimbursement on its city property taxes, but the completion of the two buildings and addition of 2,400 workers, both expected to occur by the end of the year, would mean the company would once again meet criteria for receiving the fullest reimbursement possible, according to Amy Baldwin, business development manager with the city.
Addition of 2400 jobs?? You mean the transfer of 2400 jobs, you know I have to correct the Sun Post
Target added a building to the north campus in 2006, and planned on adding more under an agreement with the city, but the economic downturn led to slowed construction and employment plans, which led to some unrealized tax abatement for the company, Baldwin said. Then, Target planned construction of two additional buildings in 2011, which the 1,200 workers will begin moving into this month, according to a company representative. Another 1,200 workers are expected to move in this fall.
Again, these are NOT new jobs, they are jobs being transferred!
Tax abatement was established as incentive for the company to expand its 150-acre north headquarters campus. It was set up in 2006 on a receding scale. The agreement began with 100 percent tax abatement in the first year if Target met the established marks, followed by 95 percent the following year and then 90 percent abatement beginning in 2011, according to Baldwin.
Since 2008, Target has received a total of $522,000 in tax abatement payments, according to Baldwin. The company was initially on track to meet its goals, receiving $90,000 in abatement from the city, but it has dipped as low as $16,000 in the past few years, Baldwin said. Its last abatement amount was $38,000,
She said the company could begin reaching 90 percent abatement if Target fulfills its 2014 plans.
The abatement agreement is on city taxes only, not on other taxes such as schools and county taxes, Baldwin said. In 2013, the total valuation of the north campus was $50.7 million and the company paid a total of $2.1 million in property taxes, according to Baldwin.
Well, that makes me feel better…….
The two new buildings total 650,000 square feet, which will bring the campus to 1.3 million square feet. The estimated assessed value of the two new buildings is expected to be approximately $50 million, Baldwin said.
The company owns 336 acres of land north of Highway 610, but it currently has no other plans for development in the area, Baldwin said. There are about 2,600 employees and contractors based at the north campus, according to Target spokesperson Eddie Baeb.
And, I’m sure Jeff Lunde considers that “job creation” and another excuse for that stupid Bottineau Transit.
Target did not comment if the 475 company-wide layoffs and 700 unfilled positions that were made public earlier this year would impact the north campus.
No comment? I’m shocked!