City beat from the Dec. 12 City Council meeting: For minutes and schedule, visit springfieldmo.gov/citycouncil
City Council voted unanimously Dec. 12 to issue up to $65 million in industrial development revenue bonds for real and personal property improvements at the former Solo Cup plant, with the intent of attracting tenants and jobs.
The bonds would be issued for 1.35 million square feet of industrial property in and around the nearly 1 million-square-foot vacant plant owned by Warren Davis Properties, according to Springfield Economic Development Director Mary Lilly Smith.
Smith said the proposed limited liability bonds would put all of the liability on the developers, who want to take advantage of property tax abatements – 100 percent on the real estate for a 10-year period and 50 percent for the following 15 years. Another 50 percent abatement on personal property taxes on equipment purchases also would be available for 10 years.
Smith said the roughly 60-year-old plant would likely meet the criteria for blight, which also would have allowed tax abatements, but the bonds have advantages because they can be issued in phases to the developers and allow for equipment upgrades.
Under state statutes, industrial development revenue bonds can be issued by local governments to finance industrial development projects. Upon issuance of the bonds, the property owner transfers ownership to the issuing body. Bond proceeds are then used to fund project improvements. After the bonds have been repaid, the title is then transferred back to the original owner.
One member of the public spoke in objection to the plan. Steven Reed said that dividing the Solo property could prevent the city from securing a single tenant to fill the space. He also objected to a first reading bill connected to the resolution that would allow outside legal counsel to draft the incentives package. City staff, however, said Davis Properties would be responsible for those legal fees.
Patrick Harrington, the listing agent for Davis Properties, said the plant dormant since March would be better marketed split up and renovated. In talking with prospects, he’s found the preferred size is between 75,000 square feet and 250,000 square feet. Renovating the space, he said, could help bring long-term jobs to the area.
“There are 1,200 parking spaces there, and I would like to see those fill up,” Harrington said.
At its peak, the Solo Cup facility employed 1,200 workers, according to an explanation to City Council that came with the resolution.
Smith said city officials collaborated with several organizations, including the Springfield Area Chamber of Commerce, to put together the incentives package.
“We have an opportunity here to fill a big, empty building,” Smith said, noting a default on bonds by developers wouldn’t hurt the city’s credit rating.
Rob Dixon, the chamber’s manager of business development, said the incentives would help to remove obstacles by prospects.
“There is no other community in the state that we know of that has a vacant building of this size,” Dixon said. “This is a unique situation that requires a unique response.”
Mayor Jim O’Neal said offering such incentives is supportive of the city’s mission to attract jobs and investment.
“With this, there is very little to risk and a lot to gain,” O’Neal said.
According to Smith, Davis Properties would likely be the first to request the issuance of the bonds, and then as tenants move in, they could request bonds for further improvement or equipment.
Fair spirits
Ozark Empire Fairgrounds officials are asking council to consider transferring the title of the fairgrounds to the city so that alcohol could be served at events on the property. The Springfield-Greene County Park Board currently holds the property title.
Kent Hyde, a member of the Agricultural and Mechanical Society of Springfield, which serves as the administrative body of the fairgrounds, said a number of groups interested in utilizing the facility have been turned away because the Park Board has a policy against selling alcohol at facilities it operates.
“We just want to level the playing field with other venues,” Hyde said.
Dan Fortner, former general manager of the Ozark Empire Fairgrounds, said he was opposed to the idea because the fairgrounds have always been known as a family friendly place. He also said that transferring the property would effectively circumvent the will of local voters who turned down an initiative to sell alcohol on Park Board property in 2002.
Representatives from the Rock’n Ribs and Sertoma Chili Cookoff told council members that their growing charity fundraisers would like to hold events at the fairgrounds if selling alcohol to their attendees was an option.
Steve Scott, chairman of the Rock’n Ribs board, said members of the Kansas City Barbeque Society have told him the Rotary Clubs of Springfield fundraiser could be much bigger if it was held at a larger facility. The event has historically been held in the parking lot of Bass Pro Shops Outdoor World.
“A lot of other festivals are larger because they are being held on public or city-owned property,” Scott said.
Jim Tucker, president and CEO of the Springfield-based International Association of Fairs and Expositions, said 66 percent of its members nationwide sell alcohol at their annual fairs and 87 percent of fairground members sold it at events they hosted.
Hyde said the fairgrounds board had no intention of allowing others to sell alcohol at its annual fair. Several council members felt adding language that would prevent alcohol sales during the fair would ease concerns, so an amendment to the proposal will be written, and public comment will be held over to the next council meeting, Jan. 17.
