Council approves $1.92 million AEDC incentive, 77-acre conveyance and 10-year abatement for Mateen Bar USA, 4-0

What the sources say

• ✓ Verified

  Councilmember Sauer moved and Councilmember Stanley seconded the location incentive agreement: the AEDC would provide Mateen Bar USA $1,920,000 for up to 160 full-time employees, paid over 10 years on a 10-year performance term, and convey 77.1 acres valued at $3,084,000. It passed 4-0 (Nelson, Sauer, Smith, Stanley); Councilmember Powell was absent.^[1]

  Incentive

  $1,920,000

  Land value

  $3,084,000

  Acres

  77.1

  Projected jobs

  160

• ✓ Verified

  Councilmember Smith moved and Councilmember Sauer seconded a tax abatement agreement among the City, the AEDC and Mateen Bar USA: 100% for 10 years on an estimated $72,000,000 in improvements in four phases and $8,000,000 in new equipment. It passed 4-0. The draft agreement in the agenda attachments places the project in Reinvestment Zone No. 15 (Ordinance No. 7945) in the AEDC's Centerport Business Park.^[1][2]

  Abatement

  100%

  Abatement years

  10

  Estimated improvements

  $72,000,000

  Estimated equipment

  $8,000,000

• ✓ Verified

  The AEDC memo projected (not results) $8,800,000 in new annual payroll and said the land would be conveyed in two parts: 40 acres for phases 1 and 2 and 37.1 acres for phases 3 and 4. It put the total incentive at up to $5,004,000 and said the AEDC board approved the agreement 4-0 on December 13, 2021.^[2]

  Projected annual payroll

  $8,800,000

  Total incentive

  $5,004,000

• ✓ Verified

  No fetched source reports that the Mateen Bar USA plant was built, that land was conveyed, or that any incentive was paid. The AEDC's audited FY2022 statements (year ended September 30, 2022), which describe the incentive agreements the AEDC approved that year and itemize its outstanding commitments, do not name Mateen Bar USA; they also list $2.1 million in 'other various commitments to local entities' without naming them. Mateen Bar is not named in the FY2023 or FY2024 audits' commitments notes or in the AEDC's project status reports from January 2025 through March 31, 2026. No source located states whether the agreement was signed, lapsed or was terminated. AEDC staff told the board in February, March and April 2022 that it was waiting for a decision from the company; later board minutes do not mention it. ^{[3][4][5][6][7][8][9][10]}

• ✓ Verified

  AEDC board minutes record the board's 2021 approval (December 13, 2021: $12,000 per job for up to 160 jobs, $1,920,000, and two land tracts of 40 acres valued at $1,600,000 and 37.1 acres valued at $1,480,000). In staff updates on February 22, March 22 and April 18, 2022 the AEDC said it was 'waiting for a decision' from Mateen Bar USA. Later minutes in the set do not mention the company.^{[11][8][9][10]}