The biotechnology company that wants a 10-year, 80 percent tax break to build in Lawrence has received the most favorable rating in the city’s tax abatement history.

A Kansas University analysis determined that, in a 15-year period, local governments would reap nearly six times the income they would give up if Serologicals Corp. gets the abatement to build a manufacturing plant here.

“It’s probably a safe bet to say it’s the highest we’ve (ever) had,” said Luke Middleton, an analyst with KU’s Policy Research Institute, which examined Serologicals’ abatement application.

The report didn’t erase all skepticism about the tax break.

“They look like a fine and successful firm, and I’d like them to come to Lawrence,” said Kirk McClure, a member of the city’s Public Incentives Review Committee, which will consider the report next week.

“But it’s not clear that they absolutely need the abatement,” McClure said. “We should be giving tax abatements only when it’s crucial to get them to come here.”

In its application, the company said the abatement, with other factors, is “a major criteria in selection” of Lawrence.

Mayor Sue Hack said she was delighted with the report and predicted smooth sailing through both the committee and the Lawrence City Commission.

“I can’t imagine it wouldn’t be,” she said. “It’s a win-win situation — fantastic for Lawrence and Serologicals.”

Bud Ingalls, a spokesman for Serologicals, agreed.

“We’ve very pleased with the report,” he said. “We’re comfortable and committed to Lawrence.”

Serologicals announced in December plans to build a 43,000-square-foot plant on 12.5 acres at East Hills Business Park on Kansas Highway 10, where it will manufacture Ex-Cyte, an ingredient in the manufacture of various pharmaceutical products.

The company said it would employ 40 workers at an average annual wage of $47,000.

The $25.7 million investment in building and equipment puts the company well above the city’s $20 million threshold for considering property-tax abatements of more than 50 percent. The company also could qualify for about $60,000 in state tax credits for job creation and as much as $2.8 million in tax credits for capital investment, if it meets wage and training requirements.

¢ 6News video: Serlologicals looking for abatement/a>¢ More on the tax abatement issue

The city’s tax-abatement policy requires officials to determine municipal taxing agencies — the city, Douglas County and Lawrence school district — will receive over the life of the deal 1.25 times the sum they would forego in tax collection from the firm. KU’s analysis showed that the company would provide more than twice the benefit for taxpayers when compared to Prosoco when it received a 55-percent abatement from the city last year for its East Hills Business Park warehouse expansion.

American Eagle Outfitters, which was granted an 80 percent abatement in 2000 but instead chose to build in Ottawa, barely broke even in the same analysis.

The Public Incentives Review Committee will meet at 4 p.m. Thursday to make its recommendation. The city commission will have final say Jan. 28.