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Home > Blogs > West Chester News and Issues > Archives > 2010 > January > 19 > Entry
Did local company receive too much?
The following press release passed across my desk late last week regarding a recent study by the Washington D.C-based non-profit, Good Jobs First, which says it “focuses on economic development efforts for high-tech jobs in Pennsylvania and six competing states,” according to a news release.
It’s headline?
“Study: Subsidy Package for Biotech Firm Amylin Was Much Bigger Than Reported.”
Excerpt
The deal (with Amylin), unveiled in a November 2007 event, actually totaled $117 million in state and local subsidies, more than twice the $46 million in state aid then announced. Public records received under the state’s freedom of information act reveal extensive secret negotiations spanning the final year of the Taft administration and the first year of Gov. Strickland’s term.
Although West Chester was an attractive location for the facility (a key manufacturing and technology partner for Amylin’s diabetes-drug product is 40 miles away in Wilmington), neither administration questioned the company’s escalating subsidy demands, the study finds.
The study was funded by the Pittsburgh-based Heinz Endowments, a regional philanthropic leader in developing strategies to spur high-tech job growth.
So I began poking around, at least from a local perspective.
Bottom line is Amylin has fulfilled all of its local obligations for job growth, building expansion and real property investment, according to township spokeswoman Barb Wilson.
As a result, they’ve received at total of nearly $12.8 million in local enterprise zone agreements from West Chester, Wilson says.
That’s based on the following:
Phase I: $20 million real property investment resulted in 75% abatement over 8 years for a total value of $1,898,510
Phase II: $90 million real property investment resulted in 75% abatement over 10 years for a total value of $10,877,400
Wilson also says Amylin entered into an agreement with Lakota Local Schools for each phase to compensate the school district for its portion of lost tax revenue, which is typical for these types of economic development agreements.
Lakota Schools receives an estimated annual school compensation payment of $522,853 for eight years, and less in the remaining two years of the agreement.
“Incentives are only offered in West Chester for high-quality corporate investors who bring significant value to West Chester, Butler County and the region,” Wilson said. “They must meet specific development thresholds in terms of real property investment and number of employees, as well as meet the overall development goals of the Township.
“Incentive packages are tools for attracting and retaining high-quality investors in the community. These investments in the community make it possible to shift some burden of infrastructure and public safety improvements from the residential taxpayer.”
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