A $1.8 million tax subsidy deal that promises to bring 60 high-paying jobs to Brooklyn Park by 2015 — and 190 by 2023 — gained final approval from the city Tuesday night.
The City Council agreed on a 7-0 vote to give Baxter Healthcare Corp. more than $1.8 million in property tax rebates and tax increment money in return for providing 60 jobs paying $75,000 a year or more, city officials said.
The rebates will come from taxes the company will pay, said Mike Sable, assistant city manager, and the deal requires Baxter to invest $10 million by 2018 in the renovation of a vacant medical products plant that it bought.
If the giant pharmaceutical company provides the 190 high-paying jobs by 2023, it also is eligible to receive more than $10 million in state subsidies, including about $7 million in sales tax rebates on material it uses to renovate the plant, said Blake Chaffee, a spokesman for the state Department of Employment and Economic Development.
Sable said Brooklyn Park's agreement requires that 60 jobs be in place and the $10 million in renovations be complete before the city gives Baxter any tax subsidies.
Baxter plans to begin adapting the plant this year, said spokeswoman Deborah Spak, from its Deerfield, Ill., headquarters. She said Baxter is still finalizing which medical and pharmaceutical products to make in the plant but is comfortable it will create 60 jobs by 2015.
"Projects of this sort require a strong partnership between the company and the community," Spak said. "We have consistently demonstrated that partnership in communities in which we operate and look forward to establishing similar relationships in Brooklyn Park."
Baxter Healthcare is the U.S. subsidiary of Baxter International, a Fortune 500 medical products company based in Deerfield. Baxter paid Genmab, a Danish company, $9.9 million earlier this year for the vacant biotechnology plant.