14
University Daily Kansan / Wednesday, February 26, 1992
City grants 10-year tax abatement
Exemption attracts veterinary supply business to Lawrence
By Andy Taylor Kansan staff writer
The Lawrence City Commission unanimously decided at its meeting last night to give a 10-year, 50-percent tax exemption on property and equipment to a company that is expanding to a Lawrence industrial park.
Pitman-Moore Inc., a veterinary supply company, will sign a seven-year lease with the city to move into a vacant building in East Hills Industrial Park, three miles east of the city on Kansas Highway 10.
The tax abatements, commonly used
to encourage industries to move to a new area, will total $445,932.
Allen Ford, a KU professor of business, opposed the idea of the 10-year tax abatement because it would leave the company without needed revenue for its coffers.
"I submit to you that this is a pretty bad deal, and it is a terrible precedent," he told the commission. "We are taking property off the tax rolls."
"I do not think it is going to be a precedent because I did not believe that there
Bob Schumm, city commissioner,
said he disregarded with Ford.
will be an effort to go build another structural warehouse," he said. "That is something we have learned from this. On the other hand, I think that if we deny this request it might create some very negative circumstances in terms of community image and community cooperation."
The building was constructed by Douglas County Development Inc., an independent group of county business owners, to von Achen, vice president of the DCDI.
"There may be people who believe jobs will come to Douglas County on their own," he said. "Without this kind of private cooperation, I don't think so."
Von Achen said the building and the tax abatement lured the company to
Lawrence.
L. J. Bair, manager of distribution for Pitman-Moore, said the company, which plans to hire 16 employees, had previously rejected Lawrence as a possible site but reconsidered it because of the tax abatement.
"Because of the private bond holders, Lawrence vendors, the city and the county, we were able to get the lease rate to a more competitive level," he said. "That made us reconsider Lawrence."
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