Tax abatement review sought

A city advisory board wants to look closer at seven Lawrence companies to see if the property tax abatements they receive are still a good investment for the community.

The city’s Public Incentives Review Committee agreed Friday to send letters asking the companies to explain why they were not meeting projections in at least one of three categories – job totals, wage levels or total investment in the community.

“We’re not passing judgment on any of these companies,” Highberger said. “We just feel like we should ask for some additional information. We’re just trying to be good stewards of the public’s investment.”

The seven companies that will be sent letters are Allen Press, Ammar Garage Doors, DST Systems Inc., Microtech Computers, Berry Plastics, Sauer-Danfoss Co. and Serologicals Corp. The committee also had questions about Prosoco and Reuter Organ Co., but both firms have already sent responses the committee will review.

The city can revoke or reduce a company’s tax abatement if projections the company made when it applied for the breaks aren’t met or if wage levels fall below community averages.

But Highberger said the committee wasn’t poised to revoke or alter any abatements. Instead, he said the committee is looking for reasonable explanations.

Heather Ackerly, the Lawrence Chamber of Commerce’s director of business retention and attraction, said she understood the committee wanting more information, but she hoped the group would understand many businesses were at the mercy of the economy.

“The business world is fluid and certainly conditions change in ways that aren’t expected,” Ackerly said.

The committee will ask each company to send a letter providing additional information. The committee may ask company representatives to make a presentation to the committee if more information is needed.

The city had 13 businesses that were approved for abatements in 2004.