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Archive for Thursday, February 8, 2007

API Foils asks for tax break on $17 million expansion

API expects to reach its decision in June

February 8, 2007

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API Foils is requesting a tax break to help finance a potential $17 million expansion for its manufacturing plant in the East Hills Business Park.

The company has applied for a 55 percent abatement on its property taxes for the potential project, which would add 60,000 square feet to the 41,000-square-foot plant that opened in 1995 at 3841 Greenway Circle in southeast Lawrence.

Lawrence is competing with Rahway, N.J. - home to API's U.S. operations - for the expansion. API Foils has an older, 250,000-square-foot plant in Rahway.

API expects to reach its decision in June, so that it can order a new coating machine that will take about 14 months to manufacture and transport to the U.S. from Germany, said Rick Stanwix, plant manager in Lawrence.

The expansion would be expected to generate about 31 jobs at the plant. The plant, which currently has 65 employees, has been running 24 hours a day, seven days a week for the past year - excluding holidays - to keep up with rising demand for its hot foil stamping products, which are used to put the shine on wireless phones, packaging for razors, seals for diplomas, decorations on greeting cards, among others.

Lawrence city commissioners are scheduled to receive the company's applications for a tax abatement Tuesday night.

Comments

conservative 7 years, 10 months ago

Concernedone, don't bother trying to teach basic economics to Bozo. He flunked Econ 101 and has no interest in letting reality cloud his beliefs.

concernedone 7 years, 10 months ago

Its pretty simple Math???

No abatements means no taxes collected at all.

Abatements mean that we get more tax base, even though we discount 55% for 10 years. That still means 45% of the taxes.

Even if it created no jobs, it would be a good deal. I don't care if they park a big empty building with expensive equipment in it and then pay only 45% of the property tax. That's money in our tax coffers.

"Corporate welfare" is a nice buzz word designed to get emotions up, but not a very good description of what's going on.

What's so evil about corporations, guess who owns these evil empires. Common folks just like us. They employ people, pay taxes, supply products and services, and, oh my god, sometimes they even make a return for their investors. I know Mr. Marx wouldn't approve, but he doesn't live here (almost).

concernedone 7 years, 10 months ago

"Yes, they are a fact, but they are also a common form of extortion."

If you choose to buy a Ford because it's cheaper than a Mercedes, are you extorting Mercedes, because you didn't buy from them?

Why is it extortion when a business chooses to locate in a place that will cost it less?

The world is flat. Nations, states, cities, companies, or individuals all compete every day.

Lawrence can pretend it doesn't have to but it will cost us a lot in the long run.

conservative 7 years, 10 months ago

Well Informed there is hope. The elections happen before the decision is to be made. Even if the amigos kill this request on receipt it could be reexamined after the elections.

KS 7 years, 10 months ago

hawk - what difference does it make? A job is a job. People can live where they want.

budwhysir 7 years, 10 months ago

A hawk very rarely lives where it hunts or plays where it works. A hawk will take flight many times a day

christie 7 years, 10 months ago

These people have NO PROBLEM asking for a 17 million dollar hand out but as soon as some Liberal asks for a pay raise we get labeled as a red.

goodcitizen 7 years, 10 months ago

Is my math fuzzy or is that 548K and change per each of the 31 "jobs"? If they stay 10 years 55K per? Hey I'll take one of those jobs, I even have a Master's degree--how bout the city giving me a tax abatement for commuting and coming back here to pay property taxes on my house?

cowboy 7 years, 10 months ago

yes your math is not only fuzzy but beyond matted fur , the 17 mill is for the equipment and facility which a company pays property tax on , not salaries.

stopthenoise 7 years, 10 months ago

Bottom line folks....they are an industry (something you may not heard of) and they provide good jobs that bring dollars into our economy and community. Go ahead and whine, calculate and dice it into little pieces. Take to long or snub them and they'll upgrade a plant somewhere else.

Geeeese....when are you going to get it!

KsTwister 7 years, 10 months ago

Where is the rest of the story LJW. How much for how many years and how does their contribution add to Lawrence's tax base? Just the facts please so intelligent decisions can be made here.

concernedone 7 years, 10 months ago

It seems that some people thank API is asking for $17 million of other people's money. For those who don't own property, let me explain:

Property tax is paid to the city/county by all property owners for land, building, vehichles, and business equipment (like factory machinery) that they own in the city/county.

These abatements simply mean that they are allowed to pay less tax, on equipment and building improvments that are NOT CURRENTLY HERE.

No expansions = 0 tax revenue collected Expansion = 45% of taxes collected (since the other 55% are abated)

Abatements are a fact and without them, we will scare away business. Then everyone's property and sales taxes will continue to climb, because we don't have the buinsess tax base (a business pays about 5 times the property tax on a building than a homeowner does on an equal value home)

Besides, with no jobs here, everyone will have to commute to other cities to work. That will add to global warming, then we are even more screwed. ; )

So, I say, give them the abatement (read take less of THEIR money, not give them public money...)

I'm sure the 31 people that get the jobs are going to pay taxes too...

HappyFace 7 years, 10 months ago

I used to work at API. I just hope that they give better training in the order dept. They had too few people to handle a very complicated ordering system. :)

just_another_bozo_on_this_bus 7 years, 10 months ago

"Abatements are a fact and without them, we will scare away business. "

Yes, they are a fact, but they are also a common form of extortion.

The city commission merely needs to do the math. Do the salaries of the added jobs justify the requested abatements or not? If they do, then grant the abatement. If not, then let Rahway, N.J. supply the corporate welfare, if they so choose.

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