Tyson’s incentives explained
By Bobbi Mlynar
Originally published 01:07 p.m., March 3, 2008
Updated 01:07 p.m., March 3, 2008
Q How much tax relief — abatements, incentives and the like — has the city of Emporia given Tyson? What will happen to that relief as a result of the company closing much of its operation here?
A Tyson was granted an Incentive Compliance Agreement with the city in October 2003, according to Assistant City Manager Mark McAnarney.
The parameters of the agreement included:
• The company would construct a building approximately 60,000 square feet in size and valued at approximately $10,000,000.
• Tyson would purchase equipment valued at approximately $26,500,000.
• Tyson would maintain an annual targeted payroll of $60,150,000.
“The company met all of the requirements in the Incentive Compliance Agreement,” McAnarney said.
The city and Tyson also agreed to an “in lieu of taxes” payment that is equal to 40 percent of the amount of general and personal property taxes that would have been due for the project.
McAnarney said under that agreement, the taxes paid by Tyson are distributed as follows:
• 60 percent to the Capital Outlay Fund of the Emporia School District
• 20 percent to the City of Emporia General Fund
• 20 percent to the Lyon County Health Department
“The city annually monitors the company’s payroll to ensure they are maintaining the targeted threshhold,” McAnarney said.
The tax abatement for the real property improvements is 10 years; the personal property acquisition tax abatement was five years and has expired, he said.
“Any remaining tax abatement on the real property will be performance-based,” McAnarney said. “The company will need to meet the pre-established threshholds or lose a portion and/or all of any remaining incentives.”
Readers with questions of local interest may send them to: BYA, in care of The Gazette, Drawer C, Emporia KS 66801. Questions need to be signed, but names will not be revealed. Anonymous questions will not be answered.