Quote:
Originally Posted by barryem
A tax abatement isn't quite the same thing as paying them. That just means they gave them a reduction on their property taxes. If they brought jobs into the community, even for 10 years, it might be a good deal for all involved. It really depends on the details.
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Basically the same. It was 90% tax abatement on property taxes for ten years. Meanwhile the property owners in this town had to pay for the improvements necessary to support Farmer Brothers' headquarters. And the workers (since this town is right next to major cities) probably won't even be coming from that small town. It's corporate welfare. If I started a business there I would have to pay full property taxes and not expect the citizens of the town to foot the bill for ten years. After ten years, I can just about guarantee that Farmer Brothers will either renegotiate for another abatement, or move on somewhere else. This is the way it's done now. There won't be any loyalty for the town bending over backwards for them.