Will Bayer give Berkeley a headache?
Bayer, the German pharmaceutical company, is playing hardball with Berkeley, and the city government is running scared, scared that Bayer will close up shop altogether and move their manufacturing facility from its West Berkeley location elsewhere unless they get tax concessions from the city.
As the San Francisco Business Times reports:
Bayer could decide as early as this month to expand the Berkeley facility to make a next-generation treatment for hemophilia patients. Or it could opt to use contract manufacturers. The latter option, East Bay officials say they were told by the company, would lead to Berkeley’s largest private employer slowly dismantling its East Bay manufacturing operations.
Key to Bayer’s decision whether to stay in Berkeley is whether Oakland expands its enterprise zone to encompass the plant, company and government leaders said. An enterprise zone could qualify Bayer for at least $13 million in tax incentives over 10 years, according to Oakland’s Community and Economic Development Agency.
Bayer is obviously the 800-pound gorilla among private employers in Berkeley, employing about 1300 people. Even PG&E wants to pitch in by offering to help Bayer save on energy. It’s not like Bayer is on the verge of bankruptcy. This is more like a “polite” form of extortion. Bayer informed the city a couple of months ago that it was considering moving, which had the immediate effect of prompting the city to speed up its efforts to join the Oakland enterprise zone. Sure, the city and the region may still benefit from”incentives” to entice Bayer to stay, but there also doesn’t’ appear to be anything to prevent Bayer from taking the money and eventually moving anyway.



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