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County Council OKs Retroactive Dreyfus Abatement

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County Council approved a tax abatement for Louis Dreyfus in a split vote Thursday.
The 10-year abatement will include both $40 million in current improvements to the Claypool soybean processing and biodiesel plant as well as the remaining value of $19 million in improvements made between 2009 and this year.
Council members Jon Garber, Jim Moyer and Larry Teghtmeyer voted against the abatement, Teghtmeyer remarking that he didn’t want to set a precedent on approving abatements retroactively.
Syracuse real estate attorney Stephen Snyder made the request, which he originally presented at the council’s June meeting. Snyder said Louis Dreyfus did not request an abatement in 2009 due to an “oversight,” and that he was asked four months ago by the company’s corporate office to pursue it.
Council would most likely have approved an abatement in 2009, council President Bob Sanders said, but thought it would be more reasonable to grant a six-year term at this point.
Snyder estimated the remaining value of the $19 million improvements at about $9 million, and said  in order to get much value out of the balance the company needs it to be included in the 10-year abatement. The law allows looking back in granting abatements, he also noted.
“There was a four-year period when the full tax was paid. If you shorten the term to six years, they will not get close to the benefit there would have been if it was granted in ‘09,” he said, also observing that some of the improvements will probably depreciate before 2019. “They paid the penalty by paying the full tax on $19 million.”
Snyder also noted that the county’s “willingness to cover (the company’s) mistake” might help make Kosciusko an attractive location for one of two planned refineries, which have stiff competition within the company globally.
Council member Brad Tandy observed that approving the retroactive abatement “really only makes sense if it gets back to corporate” and they consider the county for a new refinery.
Council member Jon Fussle moved to approve the abatement, saying he wanted to send an encouraging message to the corporate office.
“Dreyfus likes to see that we appreciate them being here,” he remarked during the meeting, saying he visited the plant and was impressed that the company buys things like vehicles locally. “I think they’re examples to other entities (of) spending money locally if you can.”
Also during the meeting, council approved several additional appropriations: $35,000 for the Clerk Document Storage Fee fund, for computer software, record rebinding, office equipment and training and seminars; $4,179.99 for building rent for the county health clinic, which is covered by Medicaid reimbursement; and $6,266.60 for jury per diem and travel in the Jury Fees fund, which was reduced in the same amount from the County General fund.
They also approved $26,000 in additional appropriations for X-rays and labs at the request of County Coroner Mike Wilson, who said he’s seeing a rise in the number of deaths of elderly residents in the county as well as the need to go to scenes and dig more in depth into cause of death.
Council also looked at the following budget reductions from County General funds: $28,000 from Surveyor; $1,600 from Drainage Board; $13,832.42 from Voter Registration; $10,975.71 from Clerk; $14,597.61 from Recorder; and $1,300 from Coroner.