St. Paul bakery is an example for tax incentive success

  • Article by: FRANK ALTMAN
  • Updated: July 7, 2013 - 9:59 PM

Reform should take note of incentives that strengthen distressed areas.

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pumiceJul. 7, 1310:48 PM

From the article: "[Baldinger Bakery used a $19 million loan incentivized by New Markets Tax Credit and provided by the St. Paul Port Authority and the Community Reinvestment Fund to fund a] construction project [which] employed 80 construction workers [to build a new 144,854-square-foot facility—state-of-the-art, energy-efficient and environmentally conscious—on an abandoned brownfields site at which] Baldinger provides living-wage jobs to 81 employees in a St. Paul neighborhood where the average family income is less than half the area average and the unemployment rate is nearly twice the national average. Not only did the Baldinger Bakery’s new facility add to the city’s and the Port Authority’s broader revitalization plan for the Phalen Corridor, known as the Beacon Bluff Business Center, but it also supports women-and minority-owned enterprises through the procurement of its raw materials." Whoa.... a win-win-win-win-win-win-win for St. Paul!

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gandalf48Jul. 8, 13 8:43 AM

Funny, if it was such a good deal and the business was going to turn a profit from an investment why couldn't they simply get a normal bank loan? I mean really that's how most businesses expand or purchase large equipment, why must a government program be set up to do what most businesses can do within the private sector? Tax reform is a good idea and certain businesses shouldn't be getting subsidized loans or special government loans...if a bank won't take the risk why should we ask tax payers to take the risk?

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stjohnsonJul. 8, 1312:38 PM

Has the loan been paid back and will it be used for other companies?

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martytoilJul. 8, 1312:57 PM

gandalf48--"why must a government program be set up to do what most businesses can do within the private sector?"--It is almost like they got a variance from the state.

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martytoilJul. 8, 13 1:21 PM

Sounds like a good program. Government is there to help and it looks like that is what it is doing.

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mncentristJul. 8, 13 1:38 PM

With so much extreme poverty out there, this seems like a sensible program. It's tough for businesses to get a loan these days. If this connects worthy businesses with the investment capital they need, then I'm all for it.

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Wally_99Jul. 8, 13 8:04 PM

Here's a TEEEEEEEEENY-WEEEEEEENY little problem, Frank. If investment in this business, like my own business, was something worthy of the private sector's interest, the private sector would have had investors piling money into these industries long ago. But alas.... WHHOOOOPS! The government has to step in, provide funds for businesses that the private sector ignores, and VOILA!!!! A financial "success"!!!!!

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dentesterJul. 8, 13 8:28 PM

This is crony capitalism, pure and simple. Some businesses benefit and others don't depending on who they know within the bureaucracy. This practice is wrong, discriminatory and should be stopped.

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martytoilJul. 8, 13 9:58 PM

So here we have a successful business and some are complaining about it?

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gandalf48Jul. 9, 13 8:39 AM

martytoil - [So here we have a successful business and some are complaining about it?] *** Yep, because of "investments" like Solyndra. Tax payer dollars shouldn't be gambled on projects that banks and other private sector investors will not touch.

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