ANDERSON — Since locating in Anderson in 2009, the Nestle company has expanded its operations in the community at least six times and is planning to make another investment.
The Anderson City Council on Thursday set final consideration for a requested tax abatement on an investment of $79.5 million in new equipment that will create an additional 30 jobs with an average annual salary of $75,000. The average hourly wage would be $36.06.
The requested personal property tax abatement would be 65 percent for six years.
adopting the tax abatement for Nestle at its Jan. 11 meeting.
Mayor Thomas Broderick Jr. said the city didn’t offer the standard 100 percent tax abatement but negotiated with Nestle for the lower percentage.
“We want to continue to be aggressive to bring new business to Anderson,” Broderick said. “But we wanted to be fair to the taxpayers and continue to expand our tax base.”
Broderick said the city is being more cautious when it comes to providing tax abatements to companies making investments in the city.
“Nestle has been a good corporate citizen,” he said. “They donated the hot chocolate for the annual Christmas parade. We reached a deal that will benefit both parties.”
Greg Winkler, executive director of the Anderson Economic Development Department, said Nestle is the city’s largest employer. “We worked hard to negotiate with Nestle,” he said. Josh Malancuk, representing Nestle, said tax abatements are a big part of why the company can expand its operations in Anderson.
Malancuk said since Nestle opened in Anderson in 2009, the company has invested more than $800 million in the facility. He said the company currently employs 774 people at the Anderson plant. The Nestle plant in Anderson manufactures Coffee Mate creamer and Boost nutritional drinks.
TOWER APARTMENTS
The council approved through two of the required readings an ordinance that will provide up to $400,000 through a bond issue for the refurbishing of the Tower Apartments in downtown Anderson. Developers are planning to invest $1.4 million in the building to create 37 one- and two-bedroom apartments.
The proposal includes the purchase of the former Boat Club building to the west of the Tower Apartments for additional parking. The 15-year bond will be paid through Tax Increment Financing (TIF). The funding will not be made available until after construction is completed. The Tower Apartments currently has an assessed value of $270,000 which will be increased following the renovation work. Winkler said the increased property taxes will be used to repay the bond. He said if the tax payments fall short of the bond payment, the developers are responsible for the difference.
Built in 1926, the Tower Apartments building at 11th and Jackson streets has been vacant for seven years, but Nathan Toulman plans to remodel it and have it opened by August 2018.