Last week Westbrook received some of the best news the city has received in a long time – one of the city’s largest employers, Idexx, announced plans to invest $100 million to expand its operations.
It’s good news because it means the city will gain an additional 500 jobs, most of which will pay well. It’s good news because the city’s commercial tax base will grow. But, perhaps most importantly, it’s good news because a company that could have gone elsewhere – and has considered it in the past – will be staying in Westbrook.
Those in Mayor Bruce Chuluda’s administration that helped negotiate this deal deserve credit for ensuring this large employer stays in a city that needs the jobs. Those in the administration who were most involved in the deal, in addition to Chuluda, were City Administrator Jerre Bryant and Economic and Community Development Director Erik Carson.
Those in Mayor Bruce Chuluda’s administration that helped negotiate this deal, such as City Administrator Jerre Bryant and Economic and Community Development Director Erik Carson, deserve credit for ensuring this large employer stays in a city that needs the jobs.
The city is offering a significant tax break to the company to get it to invest in the city. If it’s approved by the City Council, Idexx would get to keep two-thirds of the taxes it would have to pay, through property taxes, on its investment, which does not include the $1 million the company now pays to the city.
Idexx might also get tax breaks from the state for creating new jobs. The state, the city and the company are still working out the details of these tax breaks.
Hopefully, the state will deliver on these. It’s expensive to do business in the state of Maine, and these could help defray that cost. The state certainly recognizes the importance of the project. Gov. John Baldacci cited it in his “State of the State” address last week and traveled to Westbrook to appear at the press conference held to announce the deal.
It’s hard to justify giving big tax breaks to a corporation that’s obviously making money, and it’s hard to justify meddling in the free market. However, in this case, tax increment financing – the mechanism the city is using to give the tax break – is helping the city and the company to remain competitive.
The city is competing with other communities and, in a global market, other countries that would love to take all of Idexx’s taxes and jobs. The company has to justify this huge investment to its shareholders, and these tax breaks will no doubt help it do that.
Ultimately, it’s worth it because the jobs are worth far more to the local economy than what the city and state will be sacrificing in taxes. These jobs mean people like Chris Lewis, a native Mainer, will get to remain in their home state.
It means college graduates will have more opportunities. Lewis left the state for New Hampshire after college to take a job at Lockheed Martin.
“In the early 90s in Maine, it was very tough to land a job out of college, so I took the closest position that I could find that sort of fit what I was looking to do. But my goal was to eventually return back to Maine,” he said.
Lewis landed a job at Idexx in the fall of 1997. He has remained there since then and got married a year ago. After last week’s announcement, he knows he’ll be staying for good.
It’s important to remember, however, that people like Lewis are as important to Idexx as the job is to them. When Idexx CEO Jonathan Ayers met with the American Journal’s editorial board shortly after the announcement, he cited the quality of the workers and the work ethic in Maine as a primary reason for staying here.
A company like Idexx needs smart, talented people who are willing to work hard. Maine has its share of those people, and that, more than any tax break, is what is going to help sell this state and city as a great place to do business.
Brendan Moran, editor
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