Hogsett seeks $380k from Rexnord

(WISH Photo)
(WISH Photo)

INDIANAPOLIS (WISH) — The mayor of Indianapolis is looking to recoup tax savings from a company that is moving jobs to Mexico.

Mayor Joe Hogsett has sent a letter to the Rexnord President/CEO Todd Adams stating that he is recommending an agreement for tax abatement be terminated by the Metropolitan Development Commission.

“Despite every offer I have made and the good-faith efforts of your employees, Rexnord has decided to cast aside the quality and experience of your long-time, dedicated Indianapolis employees to chase cheap labor in Mexico,” said Hogsett in the letter.

In total, the city is seeking $380,674.59 back from Rexnord.

Workers were first told in October that jobs would be headed to Mexico. That move was made official last week.

Hogsett also provided this statement:

Rexnord has benefited greatly over the years from local investment and the hundreds of hardworking families that have helped make this company profitable. Yet, despite the efforts of Rexnord’s long-time employees and local union leaders, the company is choosing to uproot this plant and move 300 good-paying Indianapolis jobs to Mexico.

Indianapolis deserves to be made whole. That is why I have begun the process of clawing back all applicable financial incentives that have been provided to Rexnord over the years and will fight to make sure this money is returned to our city, on behalf of the taxpayers of Marion County.”

A spokesperson for the mayor said the recouped money will be “returned directly to the taxing units.”

Gary Canter, who’s worked for Rexnord for the last eight years, said the money should be used to revamp the property where Rexnord stands now.

“Clean it up so [another company] can reuse it and not just have it sitting there vacant. We’ve had way too many vacant buildings throughout the city of Indianapolis.”

Don Zering, a union leader and Rexnord worker, said the money should go to resources to help workers find new jobs.

The mayor said that’s how the city will use the $1.2 million dollars recovered from Carrier.

“If President-elect Trump can get done what he says he’s going to do and not let these companies move, that’s all we can hope for,” Zering said.

At the end of the letter, Hogsett offered to meet with Rexnord’s CEO. The mayor invited the CEO to show any evidence contradicting the claim that Rexnord owes the city.

Rexnord executives will also have an opportunity to testify at a public hearing on the tax agreement. The date of the hearing hasn’t been set.