The New Orleans City Council voted down two property tax breaks for The Folger Coffee Co. on Thursday but punted its decision on four others into the new year. Hours later, the Orleans Parish School Board rejected all six of the companyâs applications for exemptions that could be worth as much as $25 million over 10 years.
The City Councilâs delay on four of the projects came as members were sharply divided between those seeking more time to bring in company representatives to explain the requests and those favoring an immediate rejection. A key undercurrent was the question of exactly how much revenue City Hall and other taxing agencies would be giving up if the exemptions were granted.
Folgers is seeking about $25 million in tax breaks in New Orleans, including millions for projects that have been completed for years, in an effort that will be the first major test of new city and Orleans Parish School Board rules aimed at reining in a controversial state exemption for industrial development.
The upgrades to the companyâs plants in New Orleans East will result in few new jobs, but company representatives argue they played a role in recent efforts to consolidate its footprint in the city.
A total of six applications to the Industrial Tax Exemption Program, or ITEP, will come before the City Council and school board this week. If denied, it could mean the company would be on the hook for about in $12 million in back taxes that were put off with the expectation that its tax breaks would be approved, according to Together New Orleans, an advocacy group that has opposed the tax exemption program.
Folgers is asking New Orleans for $25 million in retroactive tax breaks over the next decade nola.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from nola.com Daily Mail and Mail on Sunday newspapers.