Follow the Money Trail Part 2: Selling yourself to New Belgium

Big Beer means Big Money
Total incentives for New Belgium  
is approximately $24 - $35 Million (and counting)

New Belgium estimates that they will invest $175 million in their facility on French Broad  River. (Click here to Read the New Belgium Contract) Keep in mind that a large portion of this is just for the building of the facilities itself which sits on roughly 20 acres.

In exchange for the investment, the City gets the following from New Belgium:

New Belgium only pays $375,000 per year in taxes for 7 years (2015 - 2021)
New Belgium pays $300,000 per year in grant money for 7 years (2015 - 2021)

We roughly estimate New Belgium should be paying $2.26 million per year which means New Belgium is receiving 1.6 million incentive, a total of approximately $11.2 million over 7 years.

In addition, the City will:
"complete any and all survey work necessary to obtain easements from New Belgium or any other property owners"
Craven Street road improvements to include: storm water mitigation, multimodal roadway improvements on Craven Street from  Haywood to Craven Street Bridge (bike paths, stormwater infrastructure, sidewalk and road widening.
Replace existing water lines on Hazel Mill Road (from 4" to 8")
City will construct a greenway provided to the City by New Belgium
Road improvements at the intersection of I-240 and Haywood, the Five Points Intersection known as Roberts Street, Clingman Avenue, Depot Street and Lyman Street intersections
City will work with County to construct low level parking lot to the North of New Belgium site (county land)
 Total estimated budget for these (April 2012 New Belgium Agreement) is: $2,335,730

According to the proposed City of Asheville 2015 Budget, the City is way off on their budget for New Belgium. The City (and your taxdollars) will be spending at least $24 Million to benefit New Belgium. 
$34,317,889 RADTIP
$1,820,448  French Broad West Greenway
$2,379,152  Clingman Forest Greenway
1,399,288    Five Points Roundabout
150,000       Craven Street Kiosk
$40,066,777 TOTAL
-16,000,000 Grant Sources
$24,066,777 TOTAL TO BE FUNDED BY CITY TAXPAYERS
Even if you deduct the Greenways, you are still left with $24 million of taxpayer dollars in order to get New Belgium here.

And, incentives and taxpayer dollars keep rising.  The AARRC is now proposing a $3 million bridge for New Belgium because the current Craven Street bridge is not sufficient for their trucks.  If that bridge were necessary on private property, the property owners would be paying for that Bridge.

We would like to see an accounting of monies spent so far on behalf of New Belgium as well as a breakout of monies budgeted.

Documents Referenced:
Click here to Read the New Belgium Contract

Click here to Read Follow the Money Trail Part 1: 30% of Capital Improvement Budget for 2.2 Miles in River Arts District?

No comments:

Post a Comment