The meteoric rise of the Mainz vaccine manufacturer BioNTech is causing an unprecedented rain of money in the city.
BioNTech is not only a company that changes the world. With the trade taxes of the vaccine developer, the city leaders want to reduce the debt and set up a network of biotech companies.
Mainz, as it sings and laughs: The success of BioNTech will also become a gold mine for the city shortly before Carnival.
The meteoric rise of the Mainz vaccine manufacturer BioNTech is causing an unprecedented rain of money in the city. Instead of a budget loss of 36 million euros, the superiors of the Rhineland-Palatinate state capital expect a surplus of no less than one billion and ninety million euros for this year alone. Next year it is supposed to be almost half a billion euros again. This offers Mainz a historic opportunity, says Lord Mayor Michael Ebling (SPD). For the green financial mayor Günter Beck, the new starting position is simply “historical”. The city does not mention the exact proportion of BioNTech trade taxes, but it is likely to be almost twice as high as the total trade tax revenue of all Mainz companies. Thanks to the success of its Covid vaccine, BioNTech earned 3.9 billion euros in the first half of the year alone.
According to their own statement, the Mainz city leaders want to handle the money wisely, repay debts and make Mainz from the pharmacy of the world a globally recognized location for biotech companies, a “biotech hub”, as they tell in conversation with the F.A.Z. The two have already looked at thirty hectares of potential land: a network of biotech companies is to be created on this — in cooperation with the university, the university hospital and the already resident research institutions.
The city wants to invest one billion euros over the next ten years, up to 5000 new jobs could be created in this way, says Ebling. He wants to take advantage of the momentum. BioNTech has made Mainz visible in the world. Hardly any angle from which no journalist has yet come forward.
The “golden wish lists”, which will now undoubtedly also enter the town hall from many parts of the city, wants to “for the time being drag Finance Director Beck backwards.” Instead, the debt should be reduced. According to him, the city wants to repay all cash loans of 634 million euros with BioNTech money by 2022 and thus create completely new investment opportunities. You can reorganize the city’s pension fund and consider building administrative buildings at your own expense and no longer renting them distributed across the city. This also saves money in the long run. The debate on who gets how much money and when should only begin. The city council has not yet approved the plans of the mayors.
Part of the money should go to the companies. With a side blow to the neighboring rich Ingelheim, the headquarters of the pharmaceutical company Boehringer Ingelheim, Beck announced that it would significantly reduce the trade tax levy rate to that of Ingelheim. This would relieve Mainz companies of 350 million euros next year. In addition, the lowered tax rate is intended to further improve the framework conditions for new biotech companies. Mainz will do everything possible to locate more companies and thus create a good foundation for the future with the money, Beck said. According to the city, around a hundred companies could settle around the “Biotech Mainz Network” over the next ten years.
Mainz does not want to be permanently dependent on BioNTech, this is also part of the new strategy. Trade taxes should be distributed over more and new shoulders. Cases in which the household of a city depends significantly on a company still exist in abundance today, some companies even carry the place in the name, such as Boehringer Ingelheim or B.Braun Melsungen. Sindelfingen had once even laid zebra crossings made of Carrara marble in the exuberance of Daimler’s commercial millions.
The dependence on BioNTech is clear to all parties involved, on the other hand “we are experiencing a very resilient commitment”, as Ebling said. Commitment in this case means: The BioNTech founders, the married couple Ugur Sahin and Özlem Türeci, have decided to continue investing in Mainz. In fact, according to the city, construction is currently being carried out at all three locations. Currently, the company employs about 1500 people, another 500 positions are advertised. A former barracks right next to the head office at the now known address “An der Goldgrube” is also planned as an extension area for BioNTech.
If the city actually repays its debt as planned, it can also free itself from the unloved gang of the Trierer service supervisory authority ADD. To date, supervision has had to approve the budget of the highly indebted city, which has repeatedly led to disputes. In the summer, the authority had completely overturned the 2022 budget, called for further austerity efforts and an increase in property tax.
With the BioNTech millions, the location of the city could now change fundamentally. Ebling assumes that the mRNA technology co-invented by BioNTech and essential for the novel vaccine could change the world just as the printing art, which was finally also developed in Mainz, by Johannes Gutenberg. For the time being, in any case, the fun is back in the carnival stronghold of Mainz. “The household,” says Ebling, “has never been so much fun.”
Article Source:- https://www.faz.net/aktuell/wirtschaft/unternehmen/biontech-gewerbesteuern-mainz-will-mit-geld-schulden-abbauen-17624793.html?utm_content=bufferf89ed&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer