Hormel Foods Corporation (NYSE: HRL) and the Mower County Commissioners have reached an agreement that will change the assessed market value of the parcels of land making up the Austin plant complex owned by the corporation. The agreement outlines a four-year transition schedule that reduces the valuation of the combined parcels in excess of $36 million to $16 million by the year 2003.
The agreement follows two years of discussions between Hormel Foods and the Mower County Assessor regarding the difference in assessed market value placed on the parcels by the two parties.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“In order for Hormel Foods to be competitive in the marketplace, we have to manage all of the expenses related to our business, including property taxes,” said Michael McCoy, senior vice president and chief financial officer for the company. “This agreement allows for a fair taxable value going forward and allows a transition period for planning purposes for the taxing districts.”
Because the valuation change will have a significant adverse impact on the Austin Public Schools, Hormel Foods Corporation dropped its protest of taxes for years 1999 and 2000. The company has also agreed to make a payment to the schools, in lieu of taxes, for the amount of the over-assessment for the current year.
Dr. James A. Hess, superintendent of the Austin Public Schools commented, “We appreciate Hormel Foods Corporation’s consideration of the school district’s financial constraints in this matter.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
