Companies say they created almost 200 jobs
The Kenner City Council plans Thursday to consider endorsing requests from two businesses to participate in a state program that could exempt them from paying as much as $1.1 million in taxes.
Ochsner Medical Center and Karl Senner Inc. applied for the breaks in the Louisiana Enterprise Zone Program, which encourages companies to create jobs.
At 180 W. Esplanade Ave., Ochsner said it has spent more than $12 million on an upgrade to the former Kenner Regional Medical Center, which it bought in 2006. The changes include restarting women's services such as labor and delivery, renovating the operating room and emergency department, developing physicians offices, buying radiology equipment, infrastructure improvements, emergency preparedness and routine capital expenses.
As a result, Ochsner created 191 jobs, said Eddy Ramirez, the hospital's vice president of operations.
Karl Senner Inc., at 25 W. Third St., imports and services marine propulsion equipment. It said it is beginning a $750,000 expansion of its office and service areas and will create six jobs.
The Enterprise Zone Program gives income tax credits to businesses that hire new employees, if 35 percent of the new hires meet certain criteria.
Therefore, if Ochsner receives the maximum $2,500 credit for each of the 191 jobs, it could get a tax break of $477,500. Karl Senner could receive a $15,000 break.
Also, a partial sales tax rebate or refundable investment income tax credit may be available for construction materials, machinery and equipment puchased during the expansion, according to the Jefferson Parish Economic Development Commission's website. Therefore, both might be eligible for a rebate on the 4 percent state sales tax and the 1 percent local sales tax.
For Ochsner, that could mean up to a $600,000 break. Karl Senner could get a a rebate of $25,000.
The City Council meets at 5 p.m. Thursday in the council chamber at 1801 Williams Blvd.