City, county aim to sweeten economic development deals

Springfield leaders are working to bring more jobs to the area. At a Springfield City Council meeting Jan. 11, members considered an incentive plan for employers that build or expand anywhere within the city and in parts of Greene County.

Council members considered seven bills related to Enhanced Enterprise Zones - specific geographic areas certified by the Missouri Department of Economic Development to promote job growth by offering local and state tax incentives to business that expand or move to the area.

Three of the bills would expand the areas of Springfield and Greene County covered by EEZs, asking council to approve city and county applications to designate a 20.7-square-mile North Springfield EEZ, a 6-square-mile West Springfield EEZ and a 63.4-square-mile Southeast Springfield EEZ. Those bills were approved.

Three other bills outlined the incentives, proposing that businesses moving to or expanding in the zones receive 50 percent tax abatements on the assessed value of any improvements made to the properties for 10 years.

There is an additional 25 percent abatement for companies that achieve Leadership in Energy and Environmental Design status.

Property improvements would only be eligible for EEZ incentives if they created and maintained 50 or more jobs and the businesses fell under one of the North American Industry Classification System clusters, which include construction, manufacturing, financial and professional services, but exclude gambling establishments, retail trade, educational services, religious organizations, public administration, and food and drinking places, according to the proposed bills.

A final bill proposed changing the current types of businesses that qualify for the existing Springfield EEZ to reflect those NAICS categories, which should prevent delays for businesses applying for incentives.

The final four bills will be voted on at council's Jan. 25 meeting.

Greg Williams, senior vice president of economic development at the Springfield Area Chamber of Commerce and a member of the Springfield Enhanced Enterprise Zone Board, spoke in support of the bills.

"We work every day with prospective employers considering Springfield as a location for new business, a location for new capital investment, and most importantly to hire our people," Williams said. "We have very limited tools in our tool shed for economic development."

Larry Spilker, manager of Ohio-based Buckhorn Inc.'s Springfield plant, told council the EEZ incentives were part of the reason the manufacturing company decided to add to its facilities in the Partnership Industrial Center.

The Springfield plant expansion - expected to bring 80 jobs - was connected to a corporate consolidation for which the company evaluated more than 10 sites across the country, Spilker said.

"Not only are you trying to draw in new business with this Enhanced Enterprise Zone, but you're also - believe me - in competition trying to keep the businesses here in this troubled economy," Spilker said. "Businesses are consolidating (so where) you might have had 35 plants, now you're going to have 30. Where are those 30 going to be?"

If those bills pass, similar measures would have to be approved by the Greene County Commission before the joint applications can be forwarded to the state, said Matt Schaefer, Springfield senior planner.

Greene County Director of Administration Jeff Reinold said the County Commission would likely consider the issue later this month.

Pension plans

Council approved a bill closing the city-funded pension fund to new hires and adopting the state's LAGERS L-11 pension fund.

Members also heard a bill removing barriers to Tier-II level employees that voluntarily choose to move to the Missouri Local Government Employees Retirement System, which will be voted on during the next meeting.

Council members also will vote at their next meeting to choose either nine members or 11 members on the Police and Fire Pension Board of Trustees.

An oversight committee -- this one citizen-based - would monitor the pension fund sales tax that voters approved in November. Council approved an amendment requiring any changes to the pension fund to be reviewed by the oversight committee before going to council.

"I want warning lights to go off if there are changes to the pension plan being considered," said councilman Dan Chiles, who recommended the amendment in order to ensure public discussions take place.

The amended oversight committee bill will be voted on Jan. 25.[[In-content Ad]]