I understand the need to make a place attractive to business, but this one strikes me as bad, in a bad economy, with people strapped. I have no idea who Bystronic is or whose crony they may be, but it’s the start of a crony capitalist arrangement I bet.
City Management Analyst Aaron Cosentino said Monday the jobs incentives package originally was put together when the prior council was seated but did not come up for approval until after the spring municipal elections. The new council wanted an analysis of the economic benefits of the incentives package compared with its costs to the city.
The cost of the Bystronic package totaled as much as $167,000. That includes as much as $85,000 in bonuses the city would pay the company for each employee it hires. The company would be required to maintain for the first five years at least 25 jobs with annual salaries of at least $40,000. But the city would pay incentives to entice Bystronic to grow its workforce.
During the first five years of the agreement, Bystronic would receive $2,000 for each job created with an annual salary, before benefits, exceeding $40,000 and $3,000 for each of the initial 25 jobs created with an annual salary exceeding $70,000. After that, the benefit is cut to $1,000 per job paying at least $40,000 before benefits. Under the agreement, Bystronic is supposed to recruit and hire Elgin residents.
That part of the agreement is capped at $85,000.
The second part of the agreement would reimburse Bystronic $81,843 for impact and other fees associated with its new facilities in Elgin and would give the company two annual memberships to Bowes Creek Country Club for three years.