Minutes 02/26/1982 - Laserfiche WebLink

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.. r FRIDAY FEBRUARY 26, 1982 In the public hearing portion of this meeting, and responding to a request from Mrs. Dorothy Blitz, of 114 Emmett Street, Mr. John P. Doane, Treasurer of The Budd Company, gave a brief description of the proposed project and the reasons the local Budd Company plant has been selected for the project, much of this information having already been presented by Mr. Doane at Council's February 23rd meeting. Mrs. Blitz then presented the following prepared statement, with certain allegations therein being refuted by Mr. Doane in responding thereto: This area is in desperate need of jobs and an expanded industrial tax base, but this grant proposal is a taxpayers giveaway to Budd. And there is no insurance that the so-called trickle down effect won't dry up once the New York contract is filled. What I find most objectionable is that this 6% loan is welfare for the rich. It is the taxpayer subsidizing the profits of the private sector. These days there isn't a small businessman or homeowner who wouldn't give his eye- tooth for a loan at 6%. Beyond that, however, I have other hesitations about this loan. Just sup- posing Budd does wrangle the New York contract. Do we have any commitment from Budd that they won't close up shop in 4~ years, causing the same economic and social dislocation that occurred when they locked the gates in 1980? No. And Budd showed their kind of commitment to those 500 workers they laid off. They railroaded through a clause in the contract stating that they are not obligated to rehire those employees, should they re-open the Ridgeway operation. Let Budd show their commitment to our area by re- hiring laid off workers based on seniority, and then make them agree to keep those workers on payroll until the loan is paid in full. Let Budd also show their commitment to this community by contracting out to local contractors--and to insure equality, let Budd guarantee that minority contractors receive a fair percentage of the work generated by these Federal tax dollars, and according to existing Federal guidelines. You say that you are committed to industrial development. Well, if you are really committed to local industrial development, here is an excellent opportunity to cash in and raise some money. I say make the corporations pay. Give the loan, but make it available at the going interest rate. Budd would still be getting a good deal, considering the low wages they pay here in Henry County, compared to the wages they pay to their workers in Philadelphia. Let Budd prove its commitment to our area, without a "no strings attached"