Arbor Networks promises to add 20 new jobs in exchange for tax breaks

The latest tax break for the company runs through Dec. 31, 2016. As part of the agreement, Arbor Networks will be required to add no less than 20 jobs by Dec. 31, 2013.

Arbor Networks was granted a tax break in 2008 for nearly $5 million in improvements, representing $1.35 million for real property and $3.6 million for personal property. The agreement required the company to add at least 90 percent of that, which city officials said it did.

City officials said the agreement in 2008 also required Arbor Networks to move 74 jobs to its facility at 2727 S. State St. and add no less than eight jobs. The company reported that as of December 2010 there were 74 jobs at that location, but due to economic conditions it wasn't able to add the additional eight jobs, said City Assessor David Petrak.

The city's administration recommended approval of the latest tax break approved Monday night, calling the attraction and retention of Arbor Networks' operation consistent with the city's economic growth objectives, as well as the goals of economic development group Ann Arbor SPARK.

"The digital information business is continually changing with new and faster technology and Arbor Networks needs new test equipment and digital equipment, with anticipation of 20 new employees resulting to this facility," Petrak wrote in a memo to council members.