Posted on 08/17/2009 12:53:00 PM PDT by SmithL
Berkeley is scrambling to line up state tax cuts and credits for Bayer, which is considering moving some or all of its 1,700 jobs out of town.
The pharmaceutical giant, which manufactures a hemophilia drug called Kogenate from its Seventh Street plant, will decide in a couple of months whether it will eventually move some or all of its manufacturing of the drug elsewhere, spokeswoman Trina Ostrander said.
Bayer will soon produce a new version of the drug, called Kogenate-ph, that will require retooling its plant and retraining workers, Ostrander confirmed. The company is deciding whether that could take place where the cost of doing business is lower.
Ostrander said Bayer pays the city about $7.3 million a year in property taxes. She had no figures for sales taxes.
Julie Sinai, chief of staff to Mayor Tom Bates, said if Berkeley succeeds in creating an enterprise zone in West Berkeley, Bayer would get about $13 million in tax breaks over the next 10 years.
"Bayer is a global company and every significant decision they make is based on the bottom line," Sinai said. "So we need to make sure they understand the value of being in our community with a qualified work force which creates a mutual benefit for them to be here."
Sinai said the city is not worried that Bayer would suddenly pack up and leave, but if it does move some of its manufacturing and training out of town, that would be the beginning of the end.
"The concern is if they are to contract out a portion of their processing, what does that mean for the long term?" Sinai said. "There's definitely some potential for job losses over the next decade. Our concern is that they stay whole."
To do that, Berkeley is working with Oakland and Emeryville to extend an existing Oakland enterprise zone to Berkeley.
An enterprise zone is a geographical area that helps towns with hiring and job creation by giving companies a break on sales taxes if they hire local people, and tax incentives for buying manufacturing equipment.
"It wouldn't just benefit Bayer, it benefits any manufacturing in West Berkeley," Sinai said.
In Berkeley, that area would include everything west of San Pablo Avenue, Sinai said.
The process for getting the tax credits includes winning approvals from the Oakland City Council, which already has happened, and from city councils in Berkeley and Emeryville, Sinai said. After that, state approval is required, she said.
"Once the cities approve it, the state will approve it pretty quickly and the state already has given us the preliminary OK," Sinai said.
Wow, a greedy corporation, no doubt an egregious polluter, big pharma to boot, what’s not to hate? Oh, they pay lots of property taxes? Get out the bejeweled kneepads, hippie scum!
Bayer will make a decision to leave the Bay Area and CA. It isn’t just the taxes,but they face increased regulations on their whole process. Plus they have to deal with a near communist union. Just like Toyota they will close down their last CA operations.
“This Worker’s Paradise discovers capitalism when tax dollars and jobs are on the line.”
Didn’t they condemn their own nation when we went into Afghanistan?
Now suddenly they want to participate in America?
They are welcome to move the jobs to Texas. We would be glad to have them.
Just leave those with Crazyfornia attitudes in the Golden State, please. We don’t need them fouling up Texas the way they did California.
How hypocritical can they be??
Still, I think Bayer should move somewhere that does not require the kow tow to politicians
No the left hated big Pharma until last week when they kissed and made up with Barry
I could not imagine commuting to work to such a pit.
You’d need security to watch people’s cars, to walk them to their cars at night, and g*d forbid you should work late
after dark. Your employees would be stuck living 2 hours
from work or living in Piedmont or Montclair. I can’t really
imagine anywhere else close in a white/asian person would dare live. You could move the entire shooting match to Ogden
UT with its affordable homes, hard working people and clean
family oriented lifestyle. I’m just saying.
I thought tie-died shirts and illegal pot were keeping the Berkeley economy alive. They have industry too?
Oh wow, this is funny.
I’m so confused. Who’s the hate target of the week now? Conservative animal experimenters? Right wing racists?
The left only gave up the “pharma” part of their hatred, dontcha know. They are still big corporations which are eligible for righteous hatred no matter what business they are in.
NO! Berkeley must drive the evil profit making capitalist pigs out of town. They are making money off the backs of the hemophiliacs. Bayer hates these people. Bayer is hemophobic. Bayer must go! No more profit in Berkeley!
Move to West Texas. We love Bayer Crop Science out here and we would welcome the polution, jobs, and we offer wide open spaces!
I was told it was the purity of their motives and the sanctity of their convictions that kept the lights on and food on the table.
They could try China I hear they throw in melamine for free.
Ha!!
This is the prototypical “no-brainer”. I don’t care what kind of rabbit the local or state government tries to pull out of its hat - the cost of housing, the crime rate, the political environment, the cost pressure of illegals, horrendous public schools, etc. etc. etc. all mitigate against staying there. You can offer your employees a much better quality of life elsewhere (Austin, TX?, Madison, WI? South FL?).
That might be a good idea. Maybe Puerto Rico or, better, Texas
"China Bayer's links with China go back to 1882, when the company first began marketing dyes on the Chinese market. Bayer's interests in this exciting region(Mainland, Hong Kong, Taiwan) have grown steadily over the years, from step-by-step investment in the early 1990s to large-scale, world-class facilities today.
With the commitment of "Bayer's Solution for China's Needs", Greater China has now become Bayer's largest single market in Asia, with sales of around EUR 1.8 billion in 2007.
With a number of major investments underway, and recent acquisitions, Bayer is committed to remain a key partner in China's development.
The core strategy for Bayer in China is to grow in step with China's economic and social development. Close communication with the government provides Bayer with a sound understanding of the local market's needs.
In the 11th Five-Year Plan, the Chinese government addressed current challenges, including agricultural problems, energy scarcity, public health, and environmental pollution.
And with the main focus on sustainable development, the government will rollout reinforced solutions for these challenges.
Bayer works under the principle "Science for a Better Life" and interprets it in China as “Bayer's solution for China's Needs”.
Last updated: 2009.02.10 简体中文
LOL. Right thats really how markets work, ask the government
Austin TX? Now why would they want to move to Berkeley East?
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