WE’VE JUST PICKED UP $2M IN JDA DEBT, AND NOW JDA WANTS TO GIVE BAXTER (BAXALTA) MORE TAX INCENTIVES

May 11, 2016

Staton Springs Entrance

Unbelievable!  When did the JDA meet and decide to help out that poor little international company worth billions that wants more tax incentives?  How many years have we been told that “Baxter” and Stanton Springs is going to pay off by 2018?  

Just a couple of months ago the Commissioners in each of the 4 counties voted to make the taxpayers of each county responsible for the $1.3M of debt JDA was going to default on.  Additionally they also approved another line of credit for $600,000 and 5% interest on all this.  Baxter’s tax revenue was going to help pay for this debt, and the taxpayers would not see any benefit for a few more years (5, 6, 7 years more?).  

If the geniuses on the JDA approve more tax incentives, and more bonds according to the article, when if ever will the taxpayers of the 4 counties see any benefit to this project?  The lawyers are making plenty of money, and the multi-billion dollar company is keeping more money for itself.  The taxpayers just keep shelling out more and more and never see any of those great benefits we hear about!

Read the article for yourself!

Joint Development Authority studies additional tax abatements for Baxalta

alice.queen@rockdalecitizen.com

Updated 12 hrs ago  May 11, 2016

 

COVINGTON — Members of the Joint Development Authority at Stanton Springs are in discussions with Baxalta in response to a request by the biopharma giant for consideration of additional tax abatements.

“It’s really just conversation at this point,” said Andrea Gray, attorney for the Joint Development Authority of Jasper, Morgan, Newton and Walton counties. “Baxalta realized that they would be making a greater investment in the Stanton Springs community, and they are internally trying to figure out how much that is going to be.”

Newton County District 5 Commissioner Levie Maddox, who is the county’s representative on the JDA, said the authority is gathering information about the potential benefits to the four counties, but that no decision will be made without a “full evaluation of the facts and in a duly noticed public meeting.”

“The Joint Development Authority understands Baxalta’s completion of the Stanton Springs facility will result in additional investment that will have a positive impact on tax revenues for the four counties,” Maddox said in an email Tuesday. “Tax abatements for any additional investment, if justified by substantial public benefits, would have to be approved through the issuance of bonds. The Joint Development Authority requested Baxalta provide information regarding the specific nature and extent of the additional investment and a current accounting of its real and personal propertry.”

The four counties that make up the JDA agreed in 2012 to abate taxes on personal and real property at Baxalta for 10 years as part of an inducement for the plant to locate in Stanton Springs. The abatements were based on a projected investment by the company of $1.137 billion and creation of more than 1,400 jobs. The abatement percentages vary by year and property type — real or personal. The abatements do not begin until Baxalta is certified for operation by the FDA or Jan. 1, 2020, whichever occurs first. Officials have said Baxalta could gain certification as early as 2018.

Gray said it is not clear when Baxalta will provide the requested information on its additional investment as the company is finalizing a merger with Shire, a specialty biopharmaceutical manufacturer based in Ireland. She said the structure of any additional abatements, if approved, would depend on the amount of the additional investment and the number of additional jobs created.

Tax abatements are typically used to induce a project to come to a community and are achieved through the issuance of “phantom bonds.” The process involves a government entity taking title to the project, then issuing bonds and leasing the project back to the developer, in this case Baxalta. The developer then would pay rent to the governing entity, and those funds would be used to pay debt service and repay the bonds. The title transfer and “phantom bond” process are necessary because taxes cannot be abated on private property.

Since Baxalta has already located in Stanton Springs, Gray said it was unclear what the advantage would be in expanding tax abatements on the project, but she said the JDA would continue to gather information for consideration.

Tommy Knight, tax assessor in Walton County where Baxalta is located, said it is not yet known if Baxalta’s investment at Stanton Springs has exceeded its original abatement amount, and the company is “not taxable on any digest” at this point. Knight said it is also important to consider that much of what was spent in development of the project would be considered “intangible” and would not be taxable as property.

BE ALERT! BE INFORMED!!

TWG

http://www.taxdogs.wordpress.com

http://www.facebook.com/taxdogs

 

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6 Responses to WE’VE JUST PICKED UP $2M IN JDA DEBT, AND NOW JDA WANTS TO GIVE BAXTER (BAXALTA) MORE TAX INCENTIVES

  1. There Is No Free Lunch says:

    Is it Baxter, Baxalta or Shire and a is it a manufacturing or Research and Development facility and does Steve Jordan or any of his bankster cronies on the JDA know or even care as long as more public debt bonds are sold and bank loans renewed?
    Maybe it’s not Baxalta, but Shire demanding renegotiation of the tax abatement agreement JDA signed with Baxter?
    A fool their money …

    As Shire-Baxalta merger nears, lots of unanswered questions remain
    May 9, 2016, 1:58pm EDT

    http://www.bizjournals.com/boston/blog/bioflash/2016/05/as-shire-baxalta-merger-nears-lots-of-unanswered.html

    …ever since the $32 billion deal was announced in January— valuing Baxalta at $47.50 per share — the Illinois-based drugmaker’s stock price hasn’t risen above $42.85, suggesting many investors believe it’s still not a sure thing. And the fact that Baxalta is still running ads promoting its brand at the Kendall Square MBTA station nearly four months after accepting the merger has prompted questions on Twitter as to the likelihood of the deal.

    The company is giving away very little in terms of the footprint or headcount planned for the new company, however. While Ornskov has said he intends to keep Baxalta’s R&D facility at 650 East Kendall Street open, last week I asked a spokeswoman for the company about it, and she made no promises that it would be the 500-employee facility Baxalta had planned.

    Likewise, the spokeswoman didn’t say much about plans for reductions in headcount. The merger of Shire, with 5,548 employees, and Baxalta, with about 17,000 as of Dec. 31, implies a combined company that’s four times the size of Shire currently, and it’s safe to say investors assume there will be some redundancies. The spokeswoman said simply that “the integration team will continuously assess our workforce needs.”
    There were a few clues on the April 29 call, however — and those suggest that job cuts are planned among R&D employees. Ornskov explained what he called an “inverted pyramid approach” to integrating the two companies, at the top of which are salespeople. He said “we aim to preserve customer interactions by retaining our sales forces and maintaining support for our patients.” Next is manufacturing, he said: “Biologics manufacturing requires a highly specialized skill set and Baxalta brings us a world-class manufacturing organization. We aim to retain expertise wherever possible.”
    R&D, he said, is near the bottom.

  2. voterwhocares@aol.com says:

    How much money has Newton County used with the Gwinnett, DeKalb and Newton Joint Development Authority? I need to follow up on this Authority.

  3. Happy Tax Hikes says:

    There is a reason economic development is controlled by a cabal of bankers statewide and it ain’t the “greater good.” Fools always get what they deserve.

    • taxdogs says:

      Bankers and lawyers. Don’t forget how much the lawyers make off of all this “economic development”.

      • Happy Tax Hikes says:

        Yeah, well when one partners up with criminal enterprises like Baxter and Shire, the services of a legal hack is not an option, but a must.Birds of a feather and all that.

        Shire Pharmaceuticals LLC to Pay $56.5 Million to Resolve False Claims Act Allegations Relating to Drug Marketing and Promotion Practices
        https://www.justice.gov/opa/pr/shire-pharmaceuticals-llc-pay-565-million-resolve-false-claims-act-allegations-relating-drug

        “Our agency will continue to hold drug companies responsible for seeking to boost profits using false and misleading claims about products, such as the powerful medications prescribed to children and other drugs at issue in this settlement,” said Chief Counsel to the HHS Inspector General Gregory E. Demske. “We entered into a corporate integrity agreement with Shire that requires comprehensive compliance safeguards, oversight of Shire promotional activities, and compliance certifications from Shire’s board of directors and management.”

        The 6 Top Thugs of the Medical World… As Ranked by “Top 100 Corporate Criminals” List
        http://articles.mercola.com/sites/articles/archive/2010/11/18/drug-companies-are-ranked-in-the-top-100-corporate-criminals-of-the-1990s.aspx

        Baxter International

        You may remember that last year at the height of the so-called flu pandemic, Baxter “mistakenly” mixed the lethal, live, biological weapon/virus, H5N1, with seasonal flu, then sent it to labs around Europe.

        The potential disaster could have meant worldwide devastation, had it not been for the fact that the Czech Republic tested the vaccine before distributing it – and found it was a deadly cocktail.

        Would it surprise you then, that Baxter is the company that, in 1993, pled guilty to the felony count of violating U.S. laws prohibiting cooperation with the Arab boycott against Israel?

        At the time, the Veterans Administration was so angered by this offense that they cited it as one reason why they wanted to suspend Baxter from all VA contracts for three years. The kicker was that the catalyst to the suspension was the VA’s contention that Baxter had “knowingly misled and provided false information to VA purchasing agents, in an attempt to get them to purchase Baxter products.”

        In the end, Baxter agreed to pay more than $6.5 million in civil and criminal penalties to settle the Arab “mistake.”

        Mistakes, Mistakes, Mistakes

        You’ll find that “mistakes” happen often with Baxter.

        From dozens of recalls of products that caused deaths and injuries, to at least 11 different guilty pleas to fraud and illegal sales activity, to more than 200 lawsuits – many of them stemming from selling AIDS-tainted blood to hemophiliacs – to more than $1.3 billion in criminal fines and civil penalties, Baxter over the years has racked up a record that makes Bonnie and Clyde look like angels.

        While I don’t have space to name all the Baxter products that allegedly have caused deaths and/or injuries, a more recent product is its blood thinner Heparin, the subject of a lawsuit filed by actor Dennis Quaid and his wife, who say their twins were injured by it.

        Another Baxter product that caused deaths through the years was its tainted dialysis filters, which led to the company settling lawsuits of patients who died as a result of the tainted filters.

        It’s no wonder why, in 1999, Baxter was named by AllBusiness.com as one of the “Top 100 Corporate Criminals of the 1990s!”

      • Stink Rolls Downhill says:

        Bankers, lawyers, Newton County corruption, all the nefarious EDA stink flows from the same sewer north of here. Scroll down and Notice #4 in the link.
        https://www.gabankers.com/WCM/Member_Center/GBA_Boards/Bank_Counsel_Board.aspx

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