Business
Yogurt Plant Represents A Different Culture
November 4, 2011 
The announcement that a Greek company is building a yogurt processing plant in Twin Falls was greeted with understandable excitment in the Magic Valley–it means JOBS!
The yogurt plant represents a different culture. One that knows how to milk taxpayers as well as the local cows.
Magic Valley is one of the biggest dairy producing areas in the USA–thanks to restrictive environmental laws in California which prompted dairymen to seek greener pastures in Idaho where it is easier to pollute and they are closer to cheap hay watered from the Snake River and the aquifer.
As we have noted in the past we GROTHOPHOBES welcome businesses that wish to pay a fair wage and the same taxes anyone else pays. This deal, like most “new business announcements” leaves a sour taste when we learn they got PAID to come to Idaho.
The politicos and the Chamber of Commerce will all tout figures of how much cash will be pumped into the economy, but the fact remains taxpayers end up footing the bill for everything from infrastructure to “job training.” The IDAHO REPORTER checked out the details on the job payments. Seems the company is being paid over $5K for each job–they won’t pay to train their own work force!
The TIMES-NEWS reports $29 million in Urban Renewal funds diverted from schools, the city, county, etc. will go to aid this new Greek business–about 25% of the announced $128 million price of the facility. Sounds kinda like the news from Europe where Greece is getting a bailout.
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Comments & Discussion
Comments are closed for this post.
Nov 4, 2011, 11:07 am
A fair wage? Let’s hear your definition of that. One might conclude that a fair wage is one that is agreed to by both the employee and the employer. Let’s see how many people show up for the jobs and then you’ll be able to have evidence of what a fair wage is. If the city of twin falls wants to give bennies to this company, great. I don’t have a problem with that. I don’t live there. It is at the local level and compared to state funds or federal funds, it most likely would be more effective. Now if you find out the feds are giving them bennies, let’s talk. It is a competitive world and to sit back and wait for companies that “wish to pay a fair wage and the same taxes anyone else pays”, good luck. However the article provides the typical hocum about all the indirect jobs to be created. I wish they would leave that gibberish out of articles like this. BTW “The yogurt plant represents a different culture”, I see what you did there!
EDITOR NOTE–The “fair wage” actually is sort of defined by the state labor dept. They offer “assistance” if the jobs are above a certain hourly wage. No doubt the $14 hourly figure will qualify for the state assistance. Can we talk now?
Nov 4, 2011, 12:18 pm
It’s not a Greek company, Agro Farma is a private company founded and headquartered in New York state since 2004. True it was founded by a Greek immigrant but this is the kind of immigration we need. The Chobani brand was established in 2007 and is wholly owned by Agra Farma, a U.S. company.
http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=51756380
EDITOR NOTE–Well done research. We agree with your comments, but still have problems with “paying” any company to locate here.
Nov 4, 2011, 2:17 pm
From the Times News:
“The announcement follows a deal brokered by the city of Twin Falls, Twin Falls Urban Renewal Agency and state agencies that will bring 400 jobs to the Magic Valley — with possibly more in the future. It’ll cost the city and URA about $29 million all told, much of that raised by taxing the increased property value generated by the construction of the new processing plant.”
It would be of interest to me which “state agencies” were involved and what the financial arrangement was, if any, from the state. That would be a problem. The Idaho Business Review article about the deal addresses the local money but not any state money. But if the 29 mill is spent only from the local city and URA, that’s fine with me, as I don’t live there.
Nov 4, 2011, 2:55 pm
This title is very punny.
Nov 4, 2011, 4:46 pm
Thank God it’s not a French company or… too bad for the Guardian it’s not French.
Nov 4, 2011, 5:07 pm
Sure shows what officials think of their own area when they believe they have to bribe anyone to move there.
Nov 4, 2011, 8:42 pm
Editor: You told Ola “No doubt the $14 hourly figure will qualify for the state assistance. Can we talk now?”
Somebody should tell Tom Luna that wage is below the poverty line. It is equivalent to a starting teacher’s salary – a job that requires a 4 year college degree.
Nov 4, 2011, 8:59 pm
Companies that hold cities hostage to Urban Renewal handouts are nothing less than thieves in the night. The only thing missing here is Tony Soprano.
$14/hr with benefits equates to an hourly wage of about $10.60/hr after all the “benefits” are paid for by these workers. Come to Idaho the land of low pay, cheap houses and even cheaper land.
I can only wonder if the good people of Twin Falls will get stuck with all the costs of dealing with the increased BOD loading of the sewage costs from this facility or have they even looked at this boogie man that has to be dealt with.
Nov 5, 2011, 12:27 pm
If the money is going to infrastructure then I have no problem with that, that’s the responsibility of government who will then own it. I just hope they take the opportunity to over build a bit to attract more companies.
Nov 5, 2011, 6:54 pm
Sounds to me a lot like the deal Dynamis is getting from a certain commish of Ada County.
Nov 5, 2011, 8:19 pm
While I am no fan of Urban Renewal it seems to me that this might be a good project. 400 jobs and the related stimulus is certainly more than the City of Nampa is getting with a new Police Station and promises to be ongoing for many years. As always the people who make these decisions can make very good decisions as well as very bad ones
Nov 6, 2011, 6:55 am
I just have a problem when the city’s attracting these companys with with low taxes that pay low wages. Ever try to buy a house with $10 a hr wages? Ot even raise a family?
Nov 7, 2011, 3:12 pm
Robert, the jobs start at $14 an hour, or almost $30k a year which will definitely qualify you for a house in the Magic Valley.
I didn’t see anything about lower taxes for the company in fact the article said “It’ll cost the city and URA about $29 million all told, much of that raised by taxing the increased property value generated by the construction of the new processing plant.”
Sounds like a good business plan to me, invest in infrastructure to attract new business, new businesses pay of infrastructure with new tax base.
ERIC–If only what you conclude were true. URban renewal funds can be spent ONLY within an urban renewal district. Taxes on any new construction or increased property values will NOT go to the city of TF. Under the current laws, those taxes are diverted from schools, city, county, etc. and remain in the urban renewal district. There will be increased demand for police, fire, sewer, and roads–all paid by those citizens who live OUTSIDE the UR district. They make it sound great, but your conclusions are way off the mark. The $14 wage qualifies for about $2 million in Idaho Dept. of labor subsidies. Even those who disagree with we GROWTHOPHOBES will be hard pressed to show any of the facts we present are in error.
Nov 7, 2011, 9:25 pm
Reply to Editor:
1. URban renewal funds can be spent ONLY within an urban renewal district.
True, politicians cannot raid the Urban Renewal funds to remodel their bathrooms or fund other pet projects.
2. Taxes on any new construction or increased property values will NOT go to the city of TF
True, but the city of TF will continue to receive taxes on the current value until the Urban Renewal Bonds are paid off or the URD term expires.
3 Under the current laws, those taxes are diverted from schools, city, county, etc. and remain in the urban renewal district
No current taxes would be diverted, only the new tax base caused by the increase in value by the Urban Renewal District would be diverted to pay off the bonds and the new tax base would revert to the city afterwards.
3. There will be increased demand for police, fire, sewer, and roads–all paid by those citizens who live OUTSIDE the UR district
I believe police, fire, sewer and roads are the infrastructure the URD is required to improve, or are they just going to spend the bonds on trees and planters around the plant?
EDITOR NOTE–The infrastructure investments will indeed be for the planters, trees and sewer around the plant (no police and fire). If they bring in “growth”
as predicted that will mean more demand for services as we stated.
Nov 8, 2011, 10:42 am
These are very interesting comments. I’d encourage you to check out StateImpact Idaho for more news and info on Idaho’s tax credit programs and the Chobani announcement. http://bit.ly/sViq3Y