Dive Brief:
- In a fight to keep its Pillsbury plant open for five years, the New Albany City Council approved a move to offer General Mills $7 million in financial incentives.
- Council concerns include the practicality of setting a precedent for bailing out companies, referred to as "corporate welfare," as well as the long-term floating bonds needed to fund the incentives.
- Tuesday night's city council vote was 5-2, and the two dissenters had requested more time to review the details more thoroughly.
Dive Insight:
The bond offered to General Mills would cover costs for modernizing the plant to keep it operational and prevent a loss of jobs that would be a significant hit to the New Albany community. General Mills is considering whether to close the plant in mid-2016, but the company agreed to meet with the union representing the 400 workers who could lose their jobs if the plant closes.