WINDSOR -- Windsor’s Council has approved roughly a half-million dollars in tax grants for downtown manufacturer Flex’N’Gate.
It's estimated the Howard Avenue business will receive $535,000 in grants over 10 years to build 12,500 sq. ft. of new manufacturing space and renovate existing portions of the plant.
The grant will help offset the company’s $3.2 million investment, which promises to add 112 new jobs and retain 580 already working at the plant.
Downtown Coun. Rino Bortolin says it's a relatively small grant -- considering the job creation and retention promised.
"It's a viable entity right in the core of the city in an operating, functioning industrial park in the middle of the city so we want to keep seeing that,” Bortolin said. “We don't want to see empty buildings, we don't want to see brownfield sites sit empty for years and years. This is a win and it's a win across the board for us."
Bortolin adds people have accused council of offering corporate welfare to keep businesses in the city, but notes council is refunding 100 per cent of the increase in tax assessment the expansion would create – which is unrealized tax revenue that the city will essentially forego for 10 years to spur job creation.
“This is tax revenue we would have not seen. For them to want to increase and stabilize their plant here, this is only giving them the incentive to tax on that increase,” he says.
According to city administration, the Economic Revitalization Community Improvement Plan has created more than 2,100 new jobs and retained more than 2,200 jobs across 35 applications since its creation.
Bortolin says the company must fulfill its obligations in order to receive the funding.
We only grant (the tax) back once it’s fulfilled, you know, they have to expand the space and expand the jobs,” “If there aren’t any new jobs and you haven’t done the construction, you don’t get the grant.”
Flex-N-Gate is an American company based in Urbana, Illinois.
