Local officials unanimously approve resolution to take back $380K in tax incentives from Rexnord
INDIANAPOLIS, Ind.– Indianapolis’ Metropolitan Commission unanimously approved a resolution Wednesday to take back tax incentives from Rexnord Corporation after the company announced plans to lay off about 300 local workers and move their Indianapolis operations to Mexico.
The resolution terminates local incentives that city officials granted Rexnord through a property tax abatement agreement in 2009. With plans to move local operations to Mexico, the commission voted to have Rexnord pay back $380,674.59 in damages to the City of Indianapolis by January 21, 2017.
Commissioners say Rexnord claims that number is actually closer to $180,000, but officials are not backing down on the repayment amount.
Just last week, union officials reached a deal with Rexnord on an employee severance package. According to employees, the package includes a week’s worth of salary for every year they worked and six months of health insurance, but in order to receive the deal, employees say they have to work until the company officially lets them go.
“In order for us to receive our severance package, they’re going to give us $500 up front December 31st, but to qualify for the remaining of the package, we essentially will have to train our replacements and teach them everything we know,” said Rexnord employee Kyle Beaman.