PA taxpayer subsidy for Neiman Marcus
$900,000 for Pittston warehouse, 151+ jobs
PA taxpayer subsidy for Neiman Marcus
Joseph N. DiStefano
Pennsylvania taxpayers will give high-end department-store operator Neiman Marcus Group close to $900,000 in grants and tax breaks for the company's planned $12 million, 200,000 sq ft warehouse in Jenkins Township, near Pittston, Luzerne County. In a statement Gov. Corbett said the chain will hire "at least 151."
Corbett credited the subsidy and the state's "pro-business climate" for Neiman Marcus' plan to build in the depressed former coal region. Neiman Marcus has booked profits totalling $150 million so far this fiscal year (first three quarters).
Landlords have been luring warehouses from New Jersey to townships along the state's free Interstate highways north and northwest of Allentown. Neiman Marcus cfo/coo Jim Skinner noted the chain already has 15 stores in PA, and Pittston is a "strategic location" accessible to NYC and other Northeast centers.
The state package includes a $375,000 grant from the Pennsylvania First program, $67,950 n job-training assistance, and $453,000 in Job Creation Tax Credits.
Smart move by Corbett. Sucker them all in and then toll the Interstates.— Wilhelm Von Humboldt- How long will it take to recoup the grants and tax breaks for 151 jobs?— Keith S.
- If the 151 jobs average $30,000 (not a stretch), the break even point, with regard to state income tax ONLY, would be about 6.5 years. I'd say that it's a fairly cheap method of getting companies to move to PA and provide jobs. In the long run, assuming they stay, it's a big win for PA.— Bigdawg1513
- Yeah, with 320 million in NET profit in 2011, they need all the help they can get. Please. Corporate welfare to Corbett's owners, is all this giveaway amounts to.— CiceroSpuriousDeodatus
- I think a governor - GOP or DEM - should do what he or she needs to do to maintain a competitive job market. It does suck to make a bad deal and waste tax payer money if there is no net gain, so the kinds of jobs it produces are important. There are examples of counties subsidizing a Bass Pro Shop or a Walmart so local people can make $7 an hour.
But wouldn't the GOP at least on the federal level call this "picking winners and losers?" Is this "corporate welfare" - using tax payer money to woo business your way or subsidize profitably businesses in attempts to keep them happy?? I would think Gov. Corbett's Libertarian wing of the party wouldn't like this deal.— BoricuaPhilsFan - These are warehouse jobs. They pay maybe $8.50/hour. That the jobs average $30,000/year is an implausible stretch. That NM will be doing $68,000 in job training is also a big stretch.
Typically, warehouses have been hiring via labor contractors that take a cut of the pay and are responsible for the right number of people showing up at the start of a shift. That way, no warehouse worker is ever eligible for promotion or benefits (holiday pay, health insurance, etc.).
This is a big win for PA only if, as Wilhelm says, the governor plans to toll the relevant interstates.— Joyful Alternative - Don't I have any say where my taxpayer money goes? Are you really going to give it to Neiman Marcus?— neddyflanders
- Nothing new. Corbett and the GOP have accelerated and been giving away corporate goodies the last 12 months at a really healthy clip.— PhillyGuy77
