Using words like “corporate welfare,” the Truesdale Board of Aldermen took a very critical stance last week when approached about a potential tax break for one of the largest companies in the area.

Representatives of the Refresco bottling plant came to the board on Sept. 28 to request a large tax abatement on $22 million-worth of production equipment that the company is considering purchasing. Refresco is an international bottling company that purchased the Coca-Cola plant in Truesdale last year.

The tax abatement would reduce the amount of personal property tax being paid on the new equipment, reducing payments by a total of more than $968,000 over 10 years.

The abatement would only reduce taxes on the new equipment, not on anything Refresco currently owns.

Bruce McCall, an attorney representing Refresco, said the company is asking for a tax abatement in order to launch another production line at the plant and hire up to 40 more employees. But Refresco hasn’t yet committed to placing the new production line in Truesdale, and the tax abatement could be a relevant factor in that consideration, McCall indicated.

“This is a competitive situation where they’re trying to see (which plant) to put the production line in,” McCall commented.

Even with the abatement, McCall said, there’s still “an increase in taxes. It’s just not as big of an increase.” Refresco would still be paying $732,000 in new taxes over the course of 10 years (rather than $1.7 million).

“If a line doesn’t get put in, the (increased tax income) becomes zero,” McCall added.

That line of reasoning didn’t sit well with Truesdale city leaders, who made clear they felt the company’s suggestion that “something is better than nothing” is an attempt to take advantage of Truesdale.

“I’m just not a big fan of the idea of a large corporation not paying their fair share, when I have to pay my tax. ... Mom and pop shops have to pay their taxes. Why is it OK for (Refresco) to not pay their taxes?” said Mayor Chris Watson.

Also frustrating, Watson said, is that Refresco inherited an already-existing tax abatement from Coco-Cola, and is coming to ask for another while the previous abatement is still in effect for three more years.

Truesdale’s aldermen expressed a similar dislike for the abatement request.

“You’re a multi-million, probably billion-dollar company. You’re doing business all over the world. And yet you need the city of Truesdale to give you a tax abatement that’s going to impact our schools, our library?” Alderman Jerry Cannon asked skeptically.

The potential impact on local schools was a major source of criticism, as the Warren County R-III School District receives the large majority of local property taxes. If Refresco’s request is approved, almost $719,000 in potential school district revenue over 10 years would be abated. The school district is already struggling with finances, aldermen said.

Acknowledging that potential impact, McCall said Refresco would offer to donate $15,000 to WISE Foundation, the nonprofit that raises supplemental funding for school district students.

But that money wouldn’t come close to making up for what the district would be giving up from the abatement, retorted Alderman Robert Green.

Watson commented that overall, the bottling plant has never showed much interest in being a good community partner like other, locally-owned businesses who contribute their time and money to local events, programs and charities. That was true of Coca-Cola, and it’s even more true of Refresco, Watson said.

Karl Schmitz, Refresco’s new plant manager, said he wants to change that relationship.

“I would be more than willing to meet with the aldermen on a frequency you suggest,” Schmitz promised. “If there’s needs and things we can help on, I’m more than happy to participate.”

Aldermen ended the conversation without an outright rejection of the tax abatement proposal, but said any continued talks would likely entail aggressive negotiation as to the terms of the deal.