Story by Kevin Woodard
On Wednesday the McLean County Board Finance Committee approved an Ordinance Abating the Levy of 2021 Property Taxes for Rivian Automotive. That abatement was in accordance with the 2016 Economic Incentive Agreement between McLean County and Rivian. A second Ordinance Abating the Levy of 2021 Property Taxes for Brandt was also approved. An agreement between Brandt and the county was made in 2017. Both ordinances will now be placed on the June 9th McLean County Board agenda for approval by the full board.
The Project Agreement with Rivian was dated Dec. 31st, 2016. In the agreement Rivian promised to invest $40.5 million in project expenses and have 500 full time employees by December 31 2021. Rivian currently has over 5,000 full time employees and exceeded the $40,500,000 in project expenses.
The Brandt agreement was dated Nov.17, 2017. Brandt agreed to have 125 employees during their peak period of 2021 and has met that expectation.
County Administrator Cassy Taylor recommended the Finance Committee approve the ordinances based largely on information she received from the Bloomington Normal Economic Development Council. Patrick Hoban, Executive Director of the Economic Development Council recommended Finance Committee Chair Catherine Metsker go forward with the abatements based on “Satisfactory Proof” provided by the companies to the council.
In an interview with Cities 92,9 Metsker explained, “We had criteria that had to be met to make sure those companies (Rivian and Brandt) brought in quality economic growth for our community which included jobs and they have met those. So we are seeing an increase in those two industries in employment and as they then improve their plant they don’t have to pay the taxes right now but later obviously we will have to revisit that.”
Finance Committee Member Chuck Erickson commented on the Rivian abatement saying, “Several years ago when we passed the Rivian abatement deal, we put benchmarks in there that you have to do certain things, meet certain criteria, so much investment, so many employees, to get these abatements. So what it’s going to look like is because they did actually invest and they did actually meet all the bench marks, that probably jacked the value of the property up and everything out there really high. So now the abatements really is going to look huge.”
Erickson continued, “But, you know, actually that’s what we wanted them to do. We wanted them to invest. We wanted them to put money in. And this is the last year of the abatement so eventually we are going to get that money back.”
County Treasurer Rebecca McNeil promised a report to the Finance Committee next month with figures on the amount of the Rivian Tax Abatement. Many in the community are interested in that as it will indicate how much additional tax revenue Unit 5School Board might anticipate receiving next year. Some believe the amount may make up a significant portion of Unit Five’s projected budget deficit.
