New Jobs: AB-InBev Metal Container Plant Expansion Gets Green Light
The Arnold City Council approved the issuance of up to $88 million in bonds to pay for the expansion, which will create 25 to 60 additional plant positions and hundreds of construction jobs.
- By Sheri Gassaway
- Email the author
- December 7, 2012
The 130,000-square-foot expansion of Anheuser Busch-InBev's Metal Container Corporation in Arnold is a go.
On Thursday, the Arnold City Council approved the issuance of up to $88 million in bonds to help pay for the expansion, which will create an additional 25-to-60 full-time plant positions and hundreds of construction jobs. The measure also approves the plan for the project.
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The council voted 5-to-2 in favor of the measure. Councilmembers Doris Borgelt, Ward 1, and Michelle Hohmeier, Ward 2, cast the opposing votes. Ward 4 Councilwoman Sandra Kownacki was absent from the meeting.
In an interview after the meeting, Ward 3 Councilman Phil Amato told Patch Anheuser Busch-InBev has four container plants and chose the Arnold facility for the expansion.
"Arnold and the entire St. Louis region will benefit from the expansion," Amato said. "One of the company's managers told me this was the largest project they've taken on in recent years."
At least one councilmember voiced concerns about the city's involvement with the project.
"This isn't the proper role of government," said Hohmeier, referring to the city's issuance of bonds. "I don't agree with corporate welfare."
Monday on Patch, we'll hear more about Hohmeier's concerns.
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Metal Container Corporation
42 Tenbrook Industrial Park, Arnold, MO38.43614-90.35695Metal Container Corporation
42 Tenbrook Industrial Park, Arnold, MO636-296-2002/listings/metal-container-corporation1712140/locations/2139875 -
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Bill Moritz
2:17 pm on Friday, December 7, 2012
It was a close thing last night. One more no vote and it was over. There are 120 very well paid manufacturing jobs at that plant and there will be at least 25 more added by the expansion. According to the economic development commission report approximately 20% of those employees currently live in Arnold. The millions of dollars in construction jobs are sorley needed in Jefferson County. It is a good thing this passed as the real estate, personal property and utility tax revenue currently generated by the can plant supports this region's schools, library district, fire and ambulance districts. The salaries and wages are spent in the area too.
I suggest there are two good follow up stories. One is why Michelle and Doris voted to close the plant as their no votes surely were cast that way. The closure would have sent the work represented by this plant to the competing states of Colorado, New Jersey or Florida. This was a win for Missouri. The second follow up story I suggest is for Doris to explain how eliminating these jobs and idling the can plant is good campaign strategy as she runs for mayor in April. Is her blind hatred of everything related to Arnold so important as to risk losing this can plant?
Sheri Gassaway
8:12 pm on Sunday, December 9, 2012
Thanks for sharing this info Bill!
JC Penknife
10:06 pm on Friday, December 7, 2012
I suggest a third story for the fine folks at Patch. Tell us if the Arnold plant really would close without this Arnold-financed addition, or if that claim is a) an A-B scare tactic to get incentives from Arnold or b) a scare tactic by Arnold to justify the incentives? Would A-B really walk away from the $5 million it spent on the Arnold facility the past two years, away from the plant closest to its flagship brewery?
Sheri Gassaway
8:11 pm on Sunday, December 9, 2012
Thanks for commenting! I'll try to get a hold of a spokesperson from AB-InBev this week.
Doris Borgelt
10:21 am on Saturday, December 8, 2012
How about we get some hard numbers instead of all of these estimates? Why have we not been told us exactly how many jobs are currently there and exactly how many live in Arnold? My source says 12 workers at the can plant live in the City of Arnold.
If A-B has a normalized profit of 5 billion 815 million in the last six months, then the estimated 14.5 million tax abatement on real and personal property over a twenty year period shouldn't be that much of a burden for them to conduct business here.
There is always a downside to a story, some times the down side outweighs the up side, that's how we as a city and consequently our citizens and taxpayers have ended upside down on the CVS project and our children will be paying for that and the Arnold Commons and Arnold Crossroads/Drury for 15 to 40 years in the future.
The council and the people deserve to know the whole story, not just the part that sounds good. Council is repeatedly given only minimal information in order to make major decisions. Once the "right" decision is made, then all of the pitfalls start to come to light. This is not the way things are supposed to be done. Decisions need to be based on all of the information, we owe that to the citizens and those who will be required to pay in the future.
Sheri Gassaway
8:10 pm on Sunday, December 9, 2012
Thanks for commenting Doris!
Bill Moritz
1:23 pm on Saturday, December 8, 2012
Arnold used a Missouri financing program called Chapter 100 bonds. It is in RSMO Chapter 100. It was put in place by the Missouri legislature years ago to allow any Missouri city, county, town or village to compete by keeping and enticing such projects. A simple explanation:
http://www.stlrcga.org/Documents/Incentives/MO_Ch%20100%20Bonds%20Detail.pdf
Arnold worked with AB-Inbev in St. Louis. Yes, you may infer that they would have pulled out of Arnold. The can plant is nearly 25 years old and past is useful life. The Pevely plant was 20 years old and is closed. You can still see it from I-55. AB-Inbev is a Belgian-owned brewery whose chairman is a Brazilian. They care nothing for the benefit or loss to Arnold. Write what you like, this was a huge win for Missouri, Jefferson County and Arnold. I am absolutely delighted that we were able to keep these jobs in Arnold and add more. To differ with my colleague’s statement, that absolutely is a role of local government.
This is AB-InBev’s largest construction project in the world right now and it is happening here. These manufacturing jobs are kept here. The added job opportunities are added here. The construction jobs are coming here. The tax revenue stays here.
If after this you still think Arnold did something underhanded by following state law to attract the largest corporate employer in our region, feel free to contact your state representative.
Matt Hay
10:34 am on Monday, December 10, 2012
I think you are tilting at a windmill here. I am not sure anyone has said what is being done is necessarily illegal. While it may be legal, it is certainly unwise. You would have thought that the lesson learned by Moberly, Mo would be a primer on the pitfalls of Chapter 100 Financing. So, you say AB would have just up and left with such certainty....I certainly hope that was never stated in discussions. Speaking of, whose brainchild was this exactly? Obviously someone took this upon themselves to engage AB, who was it? What is the net benefit for the City of the plant remaining? They do not pay sales tax, nor do we have an earnings tax, so other than the 12 jobs of Arnold residents "saved" and the temporary jobs "created" by the construction of the glorified pole barn, where is the "payoff" to teh residents in the City's investment in A-B? If you feel that the purpose of municipal government is to invest in Corporations, that is a view of stewardship so perverted, trying to convince you otherwise is an exercise in futility. Not that it is a surprise given the City's fronting for American Traffic Solutions and THF. Corporatism is in their blood. I would suggest you Google "Mamtek" and "Moberly, Missouri" and see what happens when such deals implode. So, what exactly is the City going to do in 20 years with fully depreciated facilities, after A-B has picked up and sunk their fangs into a new municipal jugular? Ever been to Detroit?
Robert James
8:52 pm on Wednesday, December 12, 2012
Mr.Moritz. I work for a company that was formed after Manufacturers Cartage Company closed at the Brewery. When Mr.Brito brought the brewery, he said that he would honor all contracts. Mine was a union contract with 30 months left. He told the board of directers if it don't make a profit get rid of it. He did not honor the contract on 10/6/2011, Manufactuer closed cost 43 hard working drivers their job. I would not believe any thing that Brito says. But on the other hand, the expense that they would incure to bring the cans into AB would be very large. For as right now they have high transportation cost to bring in the 16 and 24 oz cans, which is usally late getting to the warehouse, which they charge AB to unload the trucks store the cans and reload them on the company trailers of the company I work for to go to the brewery which is 2 blocks away. I believe that if they did not get their way,they would have closed the plant. If you all had any sense you would have put a clause in the deal that would have stated all future jobs at the plant would have to be filled by people that live in Arnold, But then again you all can;t work together any way. This is my opinion. I have worked at Manufagtuer Cartage from 2000 to 10/2011 and from the first day of the new company till now they only kept 6 guys that worked for the old company. If you want to believe what they say,go ahead. Have a good day.I will be at the next council meeting in Dec.
Doris Borgelt
9:46 am on Monday, December 10, 2012
Because something is legal, does not necessarily make it right. Can individuals or small businesses expect to pay no sales tax on new equipment or additions to their buildings? The big picture is AB-InBev is going to make at least 14.5 million more than they would have if there were no Series 100 bonds. No one gets the opportunity to buy these bonds because they are being held by AB InBev. Will they also get a tax deduction for the interest they are paying themselves on those bonds? In addition, the citizens of Arnold are paying for the new and improved sewer that will handle the additional flow from the plant. AB sold three can plants and a lid plant in 2009 for a combined total of $577 million. That leaves them with five can plants, here, FL,CA, NY,and CO and two lid plants, FL and CA in the U.S. They currently supply over 40% of the cans they need for themselves in addition to providing cans for a soft drink manufacturer.
We have locally owned small businesses in town who could use some of the cooperation that is so readily bestowed upon these larger corporations, that might help them grow. We have citizens who need to be hooked up to sewers, sewers that need to be built to service their needs and repaired. We have streets that are deteriorating and many other problems to solve, yet we are giving away future revenues? Who is next in line for taxpayers to be on the hook paying for their latest project?
Doris Borgelt
9:46 am on Monday, December 10, 2012
What AB can plant in Pevely was closed that was 20 years old and when? The only factory in Pevely that I can see from Highway 55 is the Gobain facility and last time I drove by there were cars in the parking lot and smoke coming out of their stacks.
Robert James
8:52 pm on Wednesday, December 12, 2012
Doris the plant that is mentioned can be seen from the highway after you cross highway Z. It is now a plant that makes parts for the aerospace. They used to make cans at the plant alonf time ago
Bob Hohmeier
9:46 am on Monday, December 10, 2012
The real story seems to be Arnold was blackmailed by AB-InBev into giving them special treatment by threatening to "take their ball and play elsewhere" if Arnold didn't give them a 20 year tax abatement. “Ward 3 Councilman Paul Freese said, "It may be unfair, but if we didn't work with AB-InBev, they would have left.” Phil Amato told Patch …"It would have been a disaster had the council not approved the measure because the company has already started its expansion,". So you really believe that after they’ve put more than 5 million into this they’d walk away if the city expected them to pay the same taxes everyone else is expected to? I’d say “the city blinked first”.
That is over 14 million dollars the city and area won't see go towards the much needed infrastructure problems we have, the school district, fire and ambulance care, etc. Not to mention the wear and tear the company will put on that same infrastructure they get the privilege of using without contributing fairly like we, the rest of the taxpayers do.
It is NEVER the proper role of government, federal, state or local, to pick winners or losers. And that is exactly what Arnold did. Try being most other businesses in town and ask for the same benefits and you'll get a resounding "no". A better solution would have been for government to "get out of the way" and not have such stifling regulations. That would make our city "business friendly".
Doris Borgelt
11:11 am on Monday, December 10, 2012
Is it still considered blackmail when the Mayor, city administrator and certain councilmen are aware of the "arrangement?"
Matt Hay
10:34 am on Monday, December 10, 2012
Thought I would share this Missouri Chapter 100 success story: http://www.senate.mo.gov/12info/comm/reports/GAFO_Mamtek.pdf
Holly
12:37 pm on Sunday, January 13, 2013
Where can individuals apply for the job openings at the plant in Arnold?