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Layoffs mean Catalent unlikely to receive city tax abatement

Catalent

After multiple rounds of job cuts in the last year, Catalent is not likely to receive the abatement granted to it by The City of Bloomington in 2022. (Courtesy: Catalent/City of Bloomington)

After multiple rounds of job cuts in the last year, Catalent is not likely to receive the abatement granted to it by the city of Bloomington in 2022.

Bloomington’s Director of Economic and Sustainable Development Alex Crowley said the pharmaceutical manufacturer didn’t meet the threshold for job increases, though they have until 2026.

The abatements would have given Catalent a 90 percent relief on person property tax for 20 years and a 50 percent break on real property tax for 10 years. The total net present value of the abatements at the time was a little more than $29 million. 

Read more: Catalent to invest $350 million at Bloomington facility, add 1,000 jobs

The city will still benefit from other conditions the company had to approve to have the abatement – like the $350 million in capital investment.

“So that has worked as it's supposed to," Crowley said. "We set some thresholds that we wanted them to meet. If they met it, then they would be able to take advantage of it, and if they don’t, then they don’t.” 

Crowley said Catalent has indicated it won’t meet the requirements for the abatements. He added the company communicated with the city quickly about the layoffs.

“We really appreciate it when we have engagement with with businesses, like the Catalents of the world, the Cooks of the world," he said. "Because it helps us understand what's happening. It helps us build resources and direct resources in the right way to kind of solve the larger equation."

Read more: Catalent financial woes due to inefficiencies at facilities, including Bloomington

Catalent laid off 150 employees last Friday. That comes on the heels of 400 jobs cut last November.

A condition of the severance package Catalent sent to laid off employees this week prohibits them from speaking to the media about the company and terms of the package.

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