Sep. 25—JAMESTOWN — The Jamestown Finance and Legal Committee on a 3-1 vote recommended approval for a 15-year payment in lieu of taxes for Cavendish Farms.
Councilman David Schloegel was opposed at the meeting on Tuesday, Sept. 23. Councilwoman Pam Phillips was not present.
Cavendish’s proposal was for the business to pay $400,000 annually for 15 years. In the three years following the 15-year payment in lieu of taxes, Cavendish will pay $1.34 million annually. The proposal would bring in almost $1.5 million in additional revenue to the local political subdivisions, including Stutsman County and the Jamestown Public School District.
“The city, I think our share is 25% roughly somewhere in that rate, but it’s still additional revenue to the tax of the local political subdivisions,” Mayor Dwaine Heinrich said.
The city of Jamestown’s proposal was for Cavendish to pay $475,000 annually for 18 years.
“In return (for approving Cavendish’s proposal), they (Cavendish) were willing to give away the last three years,” said Rudy Watkins, co-founder and senior partner with Harvest Group, which represents Cavendish.
On July 24, Cavendish Farms requested a payment in lieu of taxes of less than $1 million annually for up to 15 years at the Jamestown Finance and Legal Committee meeting.
Cavendish Farms is planning an $150 million expansion that will replace the fryer and expand the building by 38,500 square feet. Cavendish was also looking for a tax exemption on constructing a wastewater treatment facility with an estimated cost of about $25 million to $35 million.
Schloegel said he favors the city of Jamestown’s proposal. He said the payment in lieu of taxes would need to be renegotiated if Cavendish planned another expansion five to eight years from now.
Heinrich said there cannot be two payments in lieu of taxes on the same parcel.
In related business, the Finance and Legal Committee unanimously recommended approval of a request from the Jamestown/Stutsman Development Corp. for a jobs grant for up to $500,000 in funding for Cavendish Farms.
The city of Jamestown’s share will be $400,000, and Stutsman County’s share will be $100,000.
Earlier this month, the JSDC Board of Directors approved an incentive package of just over $750,000 on an 80-20 city of Jamestown-Stutsman County split.
The proposal includes a cash incentive, said Corry Shevlin, CEO of JSDC. The cash incentive would be provided upon the JSDC receiving proof of Cavendish’s hiring of an additional 25 full-time employees paid or $20,000 each. The employees must be paid more than $20 per hour and working for 40 hours per week to qualify for the incentive. Cavendish must be certified as a primary sector business.