Pima County Pushes Monsanto Tax Incentives into Next Year

TUCSON, ARIZONA — The Pima County Board of Supervisors meeting Tuesday was far more emotional than typical board meetings. Several hours were spent listening to comments from the public in opposition to the biotech, seed giant Monsanto coming to Pima County. The room showed mostly opposition with people holding yellow signs with the message, “Stand Up to Monsanto” as shown in the photo.

On the agenda was whether the Board would approve a tax incentive for Monsanto.

Instead it was agreed to establish two commissions, an Agricultural Science Advisory Commission to provide a science-based forum for discussion of issues raised by the speakers at the meeting and a Agricultural Community Advisory Committee to address issues and concerns brought forth by members to enable an open discussion and allow Monsanto to inform the public regarding its technology and standards used in Pima County

The specific task of the Agricultural Science Advisory Commission will be to monitor the Monsanto site on a quarterly basis and to evaluate the effectiveness of the proposed agricultural technology. Should the Commission determine research and/or technical analysis be required, such work is to be performed by the University of Arizona College of Agriculture and Life Sciences. The cost associated with this work is to be reimbursed by Monsanto in an amount not to exceed $50,000 per year.

With this, the Board voted unanimously 5-0 to delay a vote on any potential tax breaks to Monsanto until Feb. 21.

In exchange for commitments to spend at least $90 million on the development of a 7-acre greenhouse facility and hire 25 full-time and 25 part-time employees, the supervisors were considering the company’s application for a foreign trade zone status (FTZ), which would substantially reduce property taxes over the next 10 years for Monsanto.

Monsanto has already purchased a 155-acre parcel in Marana, at the intersection of Twin Peaks and Sanders Roads and is ready to break ground on corn-growing greenhouses before the end of 2016, according to County Administrator, Chuck Huckelberry.

The FTZ designation would drop the property’s assessment ratio from 15 percent to 5 percent as established by Washington. In the memo on Foreign Trade Zones from County Administrator Chuck Huckelberry, he points out that if the land were to remain undeveloped, it would bring in roughly $2,000 in property taxes, and $649,000 if the development proceeds with an FTZ designation.

Additionally, the company’s move is estimated to bring about roughly $90 to $100 million in capital investment, new construction and $284 million in economic impact between 2016 and 2025.

Marana Unified School District also approves of the project and recently approved an arrangement with Monsanto in which the company will give a one-time donation of $500,000 to a foundation affiliated with the district and pay a smaller annual property tax bill.

Citing those benefits, as well as what he described as Monsanto’s “demonstrated history of innovation, Tucson Metro Chamber CEO Michael Varney was one of a handful to speak in support of approval.

Click here to read the full memo FTZ in lieu of taxes Agreement-Monsanto