DEPARTMENT: Economic Development
DEPARTMENT HEAD: Alejandra Lopez
COUNCIL DISTRICTS IMPACTED: District 2
SUBJECT:
City Council consideration of an ordinance authorizing a 10-year, 75% tax abatement agreement with Matthews International Corporation and Agarita Profit Street LLC on new real and personal property improvements.
SUMMARY:
This ordinance authorizes a 10-year, 75% tax abatement agreement on real and personal property valued at $234,963, based on a capital investment of at least $9,000,000 and the creation of 50 new, full-time jobs at the project site.
BACKGROUND INFORMATION:
Founded in 1850, Matthews International Corporation (Matthews) is a publicly traded multinational company headquartered in Pittsburg, Pennsylvania. Matthews employs 11,000 people worldwide and is composed of three main business segments focused on marketing, memorialization, and industrial technologies.
Matthews is considering the development of a new advanced manufacturing facility at 4338 Profit Drive in City Council District 2 focused on the design, assembly and installation of custom equipment for high-tech customers in a range of industries, including automotive and energy storage. To establish the facility, Matthews will cause $1,750,000 in real property investment by its landlord, Agarita Profit Street LLC, and invest $7,250,000 in personal property for a total of $9,000,000 in capital improvements over a five-year period.
The project will create 50 new, full-time jobs over five years, including engineering, programming, and technician positions, with an average wage of $73,500. All 50 positions will make an annual salary of at least $50,000, exclusive of benefits, bonuses and other non-guaranteed pay, will be provided access to healthcare benefits, and will exceed the City's All-Industry Wage ($17.37) and Living Wage ($12.60) requirements.
Finally, as part of the abatement agreement, Matthews has committed to spending $11,750 on local, City-supporte...
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