IBM employment numbers reveal broken promise to Columbia, state

2 years 7 months 2 weeks ago Monday, April 27 2015 Apr 27, 2015 Monday, April 27, 2015 7:37:00 PM UTC April 27, 2015 in News
By: Lee Anne Denyer, KOMU 8 Reporter
loading

COLUMBIA - Documents obtained by KOMU 8 News late Monday afternoon confirm IBM's Columbia service center has not upheld its end of an agreement that provided the company millions in tax breaks.

In May 2010, IBM said it would hire 800 mid-Missourians to work at its center located on LeMone Industrial Boulevard in southeast Columbia. However, over the last five years a series of layoffs by the company has prompted questions into if IBM has met its expectation from the city and state. IBM has not released its employment numbers over the years citing company policies; however, documents provided by the DED outline IBM's most recent employment numbers. 

In a letter addressed to Stephen Dodd of the IBM Corporation obtained by KOMU 8 News, Executive Director Robert Miserez wrote that the agreement between the IBM Corporation and the Missouri Development Finance Board mandated IBM have at least 500 full-time employees on its payroll to keep receiving tax credits.

The letter is dated April 22, 2015 and can be read it its entirety here.

Missouri Department of Economic Development Spokesperson Amy Susan said the DED received IBM's annual report Monday outling employment numbers from January 2014 until December 2014. As of March 31, 2015, the IBM Columbia Delivery Center employed 453 full-time employees. That is 75 less jobs than reported in December 2014. IBM laid of employees in January 2015, but would not report how many employees were let go. 

The agreement between IBM, the city of Columbia and the state of Missouri is part of the BUILD Missouri Program. A program that provides financial incentives to companies in exchange for the promise of local jobs. Over the years, IBM received $28 million in tax credits from the state as part of the contract. The city of Columbia also agreed to pay $3 million over a 10-year time span to purchase the building on LeMone Industrial Boulevard and lease it to IBM at a cost of $1 per year for 10 years.

An IBM spokesperson refuted reports Monday that the service center in Columbia had lost financial incentives from the state of Missouri. 

Before KOMU 8 obtained the documents, IBM spokesperson Clinton Roswell said the site had maintained its agreement and would continue to receive its benefits, a direct contradiction to the documents.

"Contrary to reports IBM has not been notified by the state nor has any ongoing incentive program been suspended. IBM has met all its requirements to the state," he said.

Roswell said there were layoffs in January, but those were a result of restructuring within the company. An agreement between IBM, the state of Missouri and the city of Columbia required the company to meet certain employment rates.

"There's always a rebalancing of skills at IBM," he said. "That means that there's always the nature of our business is we respond, and we try to best serve our clients as a result there's a rebalancing of our work force."

Roswell reiterated IBM does not provide the number of employees hired at any given center but said the company has fulfilled its requirement to the city and state in terms of employment, training and reporting.

The documents state, "The company is not entitled to receive any further tax credits until the number of jobs at the Columbia facility equals at least 500."

(Editor's note: This story has been updated to reflect KOMU 8 New's obtainment of DED documents.)

 

Related Stories

More News

Grid
List
JEFFERSON CITY (AP) — Missouri Gov. Eric Greitens says he wants his five new appointees to the state veterans... More >>
6 hours ago Monday, December 11 2017 Dec 11, 2017 Monday, December 11, 2017 10:50:00 AM UTC December 11, 2017 in News
COLUMBIA - UPDATE: 10:21 A.M. The Columbia Police Department said a male victim was found unconscious and not breathing at... More >>
9 hours ago Monday, December 11 2017 Dec 11, 2017 Monday, December 11, 2017 7:34:00 AM UTC December 11, 2017 in Top Stories
COLUMBIA - Nearly four years ago to the day, local business owner Linda Bonebrake was diagnosed with severe sepsis at... More >>
22 hours ago Sunday, December 10 2017 Dec 10, 2017 Sunday, December 10, 2017 6:47:00 PM UTC December 10, 2017 in Continuous News
JEFFERSON CITY - Bird lovers got an up close look at birds typically seen in their backyards Sunday. It... More >>
23 hours ago Sunday, December 10 2017 Dec 10, 2017 Sunday, December 10, 2017 5:36:00 PM UTC December 10, 2017 in News
COLUMBIA - Museums around Columbia hosted docent led tours Sunday, spreading awareness about their exhibits and art collections. Docents are... More >>
1 day ago Sunday, December 10 2017 Dec 10, 2017 Sunday, December 10, 2017 3:59:00 PM UTC December 10, 2017 in Continuous News
COLUMBIA - 2017 will mark the 140th Christmas the historic Maplewood House has seen from its home in south Columbia.... More >>
1 day ago Sunday, December 10 2017 Dec 10, 2017 Sunday, December 10, 2017 3:54:00 PM UTC December 10, 2017 in News
COLUMBIA - MU Police Department, MU Greek Life, local businesses and residents made Operation Steal Back Christmas a huge success.... More >>
1 day ago Sunday, December 10 2017 Dec 10, 2017 Sunday, December 10, 2017 3:31:00 PM UTC December 10, 2017 in News
SPRINGFIELD, Mo. (AP) — After more than 20 years of providing resources and activities for home schooling, a southwest Missouri... More >>
1 day ago Sunday, December 10 2017 Dec 10, 2017 Sunday, December 10, 2017 11:38:00 AM UTC December 10, 2017 in News
COLUMBIA, Mo. (AP) — Jordan Geist, a role player known most for his scrappy style, scored 28 points Saturday night... More >>
1 day ago Sunday, December 10 2017 Dec 10, 2017 Sunday, December 10, 2017 9:39:00 AM UTC December 10, 2017 in News
COLUMBIA- Alyssa Schell joined the University of Missouri Police Department as a dispatcher in February, excited to be living out... More >>
1 day ago Sunday, December 10 2017 Dec 10, 2017 Sunday, December 10, 2017 9:28:00 AM UTC December 10, 2017 in News
CENTRALIA - A husband, wife and visiting grandchildren escaped a Saturday night house fire in Centralia, fire officials said. ... More >>
1 day ago Sunday, December 10 2017 Dec 10, 2017 Sunday, December 10, 2017 1:36:00 AM UTC December 10, 2017 in News
KANSAS CITY (AP) — Police in Kansas City, Missouri, say an 8-year-old boy has died after being hit by a... More >>
1 day ago Saturday, December 09 2017 Dec 9, 2017 Saturday, December 09, 2017 11:35:21 PM UTC December 09, 2017 in News
COLUMBIA - Students, staff and community members volunteered at University Village this morning to create a community garden, with the... More >>
1 day ago Saturday, December 09 2017 Dec 9, 2017 Saturday, December 09, 2017 9:41:00 PM UTC December 09, 2017 in News
COLUMBIA - Columbia provides plenty of Christmas experiences for families to enjoy, but Columbia Access Television (CAT) offered a unique... More >>
2 days ago Saturday, December 09 2017 Dec 9, 2017 Saturday, December 09, 2017 3:38:00 PM UTC December 09, 2017 in News
JEFFERSON CITY - When Hurricane Harvey struck Texas, the Patrick family watched news reports about the damage from their home... More >>
2 days ago Saturday, December 09 2017 Dec 9, 2017 Saturday, December 09, 2017 3:25:00 PM UTC December 09, 2017 in News
COLUMBIA - With two years added to his contract, Mizzou football head coach Barry Odom will remain with the Tigers... More >>
2 days ago Saturday, December 09 2017 Dec 9, 2017 Saturday, December 09, 2017 3:15:00 PM UTC December 09, 2017 in News
SPRINGFIELD (AP) — The first-degree murder trial of a 28-year-old Wisconsin man charged in the stabbing death of his Missouri... More >>
2 days ago Saturday, December 09 2017 Dec 9, 2017 Saturday, December 09, 2017 3:06:46 PM UTC December 09, 2017 in News
COLUMBIA- As winter approaches, cold temperatures are making their way back to Columbia, with lows this week consistently below freezing.... More >>
2 days ago Saturday, December 09 2017 Dec 9, 2017 Saturday, December 09, 2017 2:37:00 PM UTC December 09, 2017 in News
Columbia, MO
Broken Clouds 52°
12pm 52°
1pm 54°
2pm 55°
3pm 53°

Select a station to view its upcoming schedule:

Coming Up Next

11:00a
Rachael Ray
12:00p
KOMU 8 News @ Noon
12:30p
Inside Edition
11:00a
Jerry Springer
12:00p
Jerry Springer
1:00p
Maury

Tonight's Schedule

7:00p
The Voice
9:01p
Better Late Than Never
7:00p
Penn & Teller: Fool Us
8:00p
Valor
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld