August 12 2020

Burlington Decertifies TIF Agreement with Keurig

By: Tad Stephanak

The Town of Burlington approved Tax Increment Financing (TIFF agreement with Keurig, now Keurig Dr. Pepper, in 2012 that went into effect in 2016. 

At the latest meeting of the Board of Selectmen Town Administrator Paul Sagarino asked the board to decertify the TIF agreement due to their failure to meet the commitment of having 768 full time employees at the certified project location on South Avenue. Based on Keurig’s most recent filing with the state the location currently has approximately 597 employees. Sagarino also pointed out the company has not come through on a promised community benefits program.

“I will call your attention to the difficulty we had in tracking down the sponsorship of the town’s 4th of July Parade last year as an example,” said Sagarino. 

Unlike Burlington’s other TIF agreements which were quite modest Keurig’s TIF agreement involves a meaningful amount of tax dollars that can be put back onto the books to offset the tax burden of residents and others businesses. 

The company headquarters is in now in Plano, Texas and the town had difficulty reaching someone there to discuss the TIF with until recently. Economic Development Director Melisa Tintocalis and Sagarino said Keurig didn’t even seem to know that had a tax agreement with Burlington. 

 “This noncompliance of the job creation is an opportune time to end the agreement for both parties,” Sagarino stated.

Vicky Draughn, VP of Corporate Communications for Keurig Dr. Pepper called into the meeting and noted they did end up sponsoring the 4th of July Parade. 

The Board of Selectmen voted 5-0 to revoke the TIF agreement and begin taxing Keurig a full and fair tax rate effective July 1st.

 
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