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Politics

Brisbane Company’s Planned Move Questioned Over Tax Breaks

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(CBS)

(CBS)

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BRISBANE (KCBS) – A Peninsula company looking to move its warehouse distribution center to the San Joaquin Valley is facing opposition from not only employees, but lawmakers as well.

VWR International, a medical supply company, plans to move its distribution center from Brisbane to Visalia. The move, slated for next year, would cause Brisbane to lose 15 percent of its budget and approximately 100 Teamsters would be out of work.

KCBS’ Bob Melrose Reports:

But what has both employees and lawmakers in a fervor is the potential tax breaks the company could receive with the move.

VWR would receive a tax credit for every Visalia resident it hires as the city is one of 53 designated special enterprise tax zones; the company receives nothing for hiring people from Brisbane.

At a hearing on Monday, many longtime employees expressed concern over the fact that they would be out of work, especially with the still struggling economy.

But in a statement, VWR officials said their decision to move to Visalia was based on how they could best serve their customers.

They said the Brisbane facility is over capacity and unable to keep up with the company’s needs. Officials also added that they are looking into the tax credit issue and that it had no bearing on their decision to relocate.

(Copyright 2011 by CBS San Francisco. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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