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Indianapolis will seek to claw back $380k in tax incentives from Rexnord

Posted: 1:08 PM, Nov 21, 2016
Updated: 2016-11-21 16:13:20-05

INDIANAPOLIS -- The city of Indianapolis will try to claw back $380,000 in tax incentives from Rexnord Bearings for the company's decision to move 300 jobs to Mexico.

Mayor Joe Hogsett alerted Rexnord executives last week that they had 30 days to provide evidence against charges that the company's decision puts it out of compliance with an agreement it signed to receive a five-year property tax abatement.

The city lists $380,674 in tax savings Rexnord received in 2010-2011 that it will attempt to claw back.

“Rexnord has benefited greatly over the years from local investment and the hundreds of hardworking families that have helped make this company profitable," Hogsett said in a written statement. "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.”

Rexnord told Hogsett and Sen. Joe Donnelly (D-IN) on Friday that it would not reconsider its decision to move operations from its Indianapolis plant to Monterrey, Mexico. Hogsett said he was "disappointed" in the company's decision and promised to recover financial incentives provided to Rexnord.

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Rexnord's move comes just 8 months after 1,400 Carrier workers found out their jobs were being phased out of an Indianapolis manufacturing plant and instead moved to Carrier's facility in Monterrey.

In October, RTV6 invited Rexnord employees to take part in a conversation on Facebook Live night to discuss the job loss to other countries.  You can watch that discussion below:

View the full letter Hogsett sent Rexnord last week below: