Corporate Welfare update: Cooper Power Tools Inc.

I’m going to post every one of these handouts to corporations with promises of “creating jobs” so that it’s easy to look back at the tax dollars we spent on NOT providing government services.

the commission approved a $125,000 grant to assist Cooper Power Tools, Inc., with renovations and relocation of equipment to Dayton from its Springfield operation. A Montgomery County Economic Development/Government Equity grant will provide $75,000 of the cost. The city’s development fund will cover the balance. The company will invest $225,000 in its facility at 762 W. Stewart St., according to city of Dayton documents. Cooper will create 15 jobs, relocate 15 jobs and retain 125 full-time positions.

via Dayton considering buying trailer for disasters.

Just last night, I had to listen to a small business person in Dayton ask why she didn’t get the sweetheart deal on the former Chin’s space that I wrote about a few days ago- where the City gave a huge rent subsidy to a business that never materialized. In marketing, you can’t survive on being the low price leader with just selling “door busters” at a loss. Dayton needs to learn how to sell Dayton without giving away the store.

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13 Responses

  1. Gene October 8, 2009 / 8:26 am
    “I’m going to post every one of these handouts to corporations with promises of “creating jobs” so that it’s easy to look back at the tax dollars we spent on NOT providing government services.”

    Fine, and I will comment every time that you never address the abuse of individual welfare and how it has costs us billions and billions of dollars. Why should tax payers fund individuals who don’t work and use their money or resources (ie food stamps, section 8 housing) on drugs, tobacco, alcohol, Twinkies, Ho-Hos, guns, etc. ?

    Keep on being hip to this hip idea that involves urban hipsters. You are so hip David.

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  2. Gene October 8, 2009 / 2:49 pm
    I guess a non response means you endorse the corrupt personal welfare system and loath corporate welfare that allows companies to employ people, grow, pay more taxes, etc.

    Not sure if that is the stance you should take while running for office. Silence is deadly.

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  3. David Esrati October 8, 2009 / 3:10 pm

    @gene- I often don’t respond to your baiting. One program is run at the local level, one is at the national level. I’m running for Dayton City Commission.

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  4. Gene October 8, 2009 / 3:29 pm
    True, but often you state your thoughts around all types of subjects, regardless if they are local or state level or national. Can you just answer the question? And ON A LOCAL LEVEL, if you went in to Krogers and witnessed with your own eyes abuse of food stamps or people buying beer with welfare money, would you post about that? You post on just about everything else.

    Not baiting, just asking. You rarely respond because you apply different standards to different people. That is just who your are, and I will call you out each and every time on it.

    You benefited from tax breaks. You have applied similar philosophies yet boil when your fellow Daytonian gets a helping hand.  Dodge it again, but I will keep asking until you answer.

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  5. ShortWest Rick October 8, 2009 / 9:00 pm
    ‘if you went in to Krogers and witnessed with your own eyes abuse of food stamps or people buying beer with welfare money’

    Ooooh Gene, I’m so sorry but I have to, do you wear bell bottoms and drive a Gremlin?  The advent of the WIC EBT system back in 1999 virtually eliminated ‘food stamp laundering’. Certainly back in the day when food stamps resembeled monopoly money there was sombody somewhere willing to exchange a six-pack for fifteen dollars in stamps but honestly, even thirty years ago it didn’t happen too much at Kroger or any other reputable retailer who wanted to maintain their ability to be reimbursed for food stamps taken in.

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  6. Civil Servants are People, Too October 8, 2009 / 9:16 pm
    So when CompanyX comes to Commissioner E and says “we need an equity injection or we can’t afford  to buy Building Y, and we’ll buy the cheaper one in Suburbtown  instead,” what should the Commissioner say to keep them in Dayton?

    What if ithat grant or tax credit is the difference between a bare-bones renovation or a 4-star renovation that will improve the look and feel of Dayton for everyone?

    There are many ways to create a better city.   Dayton should explore every reasonable idea.

    However,  when it comes down to the individual company making a one-time decision that will carry them for the next 10, 20, or 50 years – what will you do to keep them at the table, if you have taken  all the incentives off the table?

    Sorry, but putting a cop on the corner won’t cut it in that situation.

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  7. ShortWest Rick October 8, 2009 / 9:53 pm
    If  Company X  doesn’t have a business plan they can take to the bank,  get a loan to buy Building Y and convince the bank they can turn a profit with the ability to repay the loan you now need to convince me why tax payers should subsidise Company X  for gracing us with their presence.

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  8. David Esrati October 9, 2009 / 7:52 am

    From today’s DDN:

    DAYTON — Cooper Power Tools is still pursuing an expansion at its West Stewart Street location, and Dayton City Commission has approved a $125,000 total grant to support the move.

    The grant — consisting of $75,000 from the Montgomery County Economic Development/Government Equity (ED/GE) fund and $50,000 from Dayton’s development fund — will help retain 125 jobs, move 15 employees to Dayton and create 15 new positions, the city said Thursday morning, Oct. 8.

    via 15 new jobs created with support of Cooper expansion.

    btw- SWRick- couldn’t say it better myself.

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  9. Gene October 9, 2009 / 9:00 am
    Scan food, hand over smokes. That is how you get around it.

    Scan food and sell food outside of store for drugs. Another way they get around it.

    So what were you saying about food stamps. Oh, that is right, you do not go to that Kroger and have never seen the fraud. I have.

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  10. Civil Servants Are People, Too October 10, 2009 / 6:20 pm
    @ If  Company X  doesn’t have a business plan they can take to the bank,  get a loan to buy Building Y and convince the bank they can turn a profit with the ability to repay the loan you now need to convince me why tax payers should subsidize Company X  for gracing us with their presence.
     

    That’s a red herring.  If the company can’t get bank financing, there is no project in the first place.    I’m talking about incentives for a financially sound company that is choosing between two (or more) locations.
    I’m still not seeing an answer for how you would convince such a company to make the business  decision today to choose Dayton, if you are planning to eliminate incentives.
    Imagine you have 24 hours to get it done.   All the ideas you have for the future make no difference.
    What say you?
     

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  11. David Esrati October 10, 2009 / 7:53 pm

    @csapt

    Incentives: That they have confidence in Dayton- as a city that’s going places and that their investment will be safe. That should be all it takes.

    We are not going to get in a bidding war with tax dollars to “attract” business. Either we have what they need to make a profit- or we don’t.

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  12. Drexel Dave Sparks October 11, 2009 / 9:21 am
    It seems that the idea of safe streets first, easy and helpful bureaucracy, and solid parks and such are a foreign concept with city leadership defenders.
    How can you address such things when the majoritarian leadership doesn’t even connect with these concepts concretely , or even abstractly for that matter?

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  13. David Esrati March 29, 2010 / 3:25 pm

    Update- Now Cooper is merging;

    The parent company of Cooper Power Tools in Dayton is making significant changes, but the effect on local workers is unclear.

    Houston-based Cooper Industries Ltd. (NYSE: CBE) on Friday announced it would create a new company by merging its tools business with certain tools businesses from Washington, D.C.-based Danaher Corp.

    Cooper and Danaher (NYSE: DHR) will each own 50 percent of a new company, which is expected to have annual sales of more than $1.2 billion. The deal still awaits regulatory approval.

    Officials from Cooper Industries could not be reached for comment. Cooper’s tool business includes power tools and hand tool segments.

    via Cooper Power Tools to merge – Dayton Business Journal:.

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