Gerber Products Company - Tax Break and Expansion

Tax Break and Expansion

In September 2008, Gerber's Fremont facilities were designated as a Michigan Agricultural Renaissance Zone, and received $43 million in tax breaks over 15 years. In order to receive the incentives, Gerber agreed to continue its employment in Fremont at 1,100 jobs and invest $50 million in its Fremont facilities over the course of the next 10 years, however to get the full 15 years of tax breaks, Gerber agreed to increase employment by 200 and spend a total of $75 million on its facilities. The Tax Breaks have been largely supported, despite large revenue losses by local governments. $300,000 in losses a year for the City of Fremont, 10% of their budget, $160,000 a year for Newaygo County. It is estimated local governments would give up potentially $15 million in revenues over the 15 years as part of the tax break. Both the county and the city will be working with the Fremont Area Community Foundation to receive funds in the initial years to help with specific projects and programs. The Fremont Public School District would receive assistance through the state school aid formula. Nestle Nutrition North America CEO Kurt Schmidt said that the Fremont research and development center will be one of 23 worldwide Nestle "product technology centers" and also include scientific research for baby and infant nutritional products. It is expected that the new investment will help make Newaygo County a "global leader in scientific research."