"I believe we reached that point where we don't have to offer a 100% tax abatement," mayor says

More than $247.6 million in business investments were made in 2017 through new companies locating to the city and expansion of existing businesses. A total of 679 job opportunities will be created in the city over the next few years.

That compares to investments of $68.8 million and the promise of 262 jobs in 2016.

Unlike in previous years where city officials had to provide 100 percent tax abatements, the new companies are selecting Anderson based on its location.

“The reality is that the foundation we put in place is proving to be attractive,” Mayor Thomas Broderick Jr. said. “I believe we reached that point where we don’t have to offer a 100 percent tax abatement.

“I understand what we did in previous years to attract investment,” he said. “Now we’re at the place, unless it’s something extraordinary, we don’t have to offer the same level of incentives. We have to expand the tax base, maxed out through the tax caps.”

Broderick said the new investors know the city wants them to locate in Anderson, but the property tax revenues are needed to maintain the infrastructure.

“We’ve talked and explained to investors that we want you here, but they have to pay their fair share,” he said.

Greg Winkler, executive director of the city’s Economic Development Department, said this was the best year the city ever had.

“It was a great year and the challenge is to maintain that level,” he said.

Winkler said the recent tax abatement offered to Nestle making an $80 million investment can’t be compared to the abatements provided in 2012.

“They were pushing for 70 percent. We couldn’t do that,” Broderick said of the 65 percent personal property abatement agreement. “That saved the city $1 million.”

Broderick said when NTK Precision Axle was negotiating with Anderson the company wanted a 100 percent tax abatement that was similar to that offered NTN Driveshaft.

“We went on Election Day to meet with Jim Riggs (NTN CEO) and he agreed to the reduced tax abatement,” he said.

The city is providing a 70 percent tax abatement on real and personal property over 10 years.

Winkler said a compromise on providing electric power to the NTK site saved the city another $1 million.

Broderick said the focus on development has been on the city’s south side, but that prime real estate is a premium.

“There is only so much land available,” he said. “We don’t want to turn anyone away. What do you offer someone that is going to take 50 or 60 acres of prime land and bring only a handful of jobs? We’re encouraging them to look at other locations in the city.”

Winkler said part of the conversation has to involve the state.

“We really need another interchange between exits 219 and 222,” he said.

Broderick said the city can lobby the state for the best location for a new interstate interchange.

Winkler said there is enough activity in the pipeline to have another good year when it comes to investments in Anderson.

“The existing businesses and newer businesses are looking to expand,” Broderick said. “These companies have to be satisfied because they are looking to grow in Anderson.

“I knew things were going well, lots of leads that are coming in,” he said after two years as mayor. “I have high hopes that next year will look as good.”

With investors looking at the Tower Apartments, former Warner Press and Elston-Richards properties, it’s creating new life in the city, Winkler said.

“I didn’t expect those properties to move. I didn’t expect that,” he said. “These investors have big plans for those properties.”

Broderick said younger investors are excited about locating in Anderson.

“The reality is the bigger companies see Anderson as a good place to invest,” he said.