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TMCNet: ID board approves tax help for expansions: Meow Mix to hire in fall, Bunge later

[May 06, 2008]

ID board approves tax help for expansions: Meow Mix to hire in fall, Bunge later

(The Decatur Daily (AL) (KRT) Via Acquire Media NewsEdge) May 6--Hiring at Meow Mix could start this fall, with Bunge hiring not starting for almost two years, after the Decatur Industrial Development Board on Monday approved tax abatements for expansions.


Meow Mix, owned by Del Monte Corp., expects to hire seven employees before increasing production capacity in early 2009. According to documents it filed with the board, the jobs will average $39,000 a year.

"Over the last six years, we've increased output every year," said plant manager Bryan Pickett. "We're at a point where we need to increase capacity in order to keep up with the market."

No final decision

Gene Moore, plant manager of the Bunge North America Inc. plant in Decatur, told the board at its Monday meeting that the company has not made a final decision that it will add the packaging facility in Decatur. Receiving the abatement, Moore said, keeps the Decatur plant in the running for the facility.

"This is a long way from a done deal," Moore said. "Bunge is investigating other places to make the investment."

If the project goes forward, construction would take two years. Moore said Bunge would hire about 45 employees close to the end of construction. According to documents Bunge filed with the board, the jobs would average $37,000 per year.

The packaging facility would be across the street from Bunge's riverfront plant.

The IDB unanimously approved abatements for both companies.

The approved Meow Mix abatements:

--?$106,125 in Decatur construction-related sales and use taxes during construction.

--$5,040 in abatements of Decatur non-educational real and property tax each year for 10 years.

--?$9,073 in abatements of Morgan County non-educational real and personal property taxes each year for 10 years.

Del Monte estimated the expansion would generate $15,800 a year in taxes for Decatur City Schools every year for 10 years, and $1,930 in Morgan County school taxes every year for 10 years.

Additionally, it would generate $26,530 for Morgan County schools during the construction period.

Meow Mix, on Market Street Northeast, employs 143.

The Bunge abatement would reduce non-educational property taxes by $227,165 a year for 10 years.

The abatement would apply to state, county and city taxes.

The abatement also would eliminate $2.3 million in sales and use taxes during the construction period.

Shouldering abatement

Morgan County would shoulder $121,000 of the annual tax abatement, with Decatur's abatement coming to $67,000 a year.

Bunge said the expansion would add school taxes of $236,000 a year, most going to Decatur City Schools.

Moore said Bunge's only openings now are for mechanics. It accepts applications at the plant. Pickett said Meow Mix is not hiring now, but will advertise when it does. It accepts applications through Decatur Career Center.

To see more of The Decatur Daily, or to subscribe to the newspaper, go to http://www.decaturdaily.com

Copyright (c) 2008, The Decatur Daily, Ala.
Distributed by McClatchy-Tribune Information Services.
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