City looks to expand enterprise zone

Abating property taxes might get a little easier for businesses in the cities of Springfield and Battlefield.
Springfield City Council is considering redrawing the existing Enterprise Zone boundary to cover 68 square miles, including areas of Greene County and Battlefield.
The request at the March 7 meeting would create an Enhanced Enterprise Zone to replace the previous 30-square-mile Enterprise Zone, which expired at the end of 2004. The zone is intended to attract manufacturing and distribution companies to the area and give incentive for established businesses to expand their operations.
Springfield Economic Development Director Mary Lilly Smith said the zone offers incentives at both the local and state levels.
“Qualifying businesses are eligible for property tax abatement for improvements that they make to their buildings,” she said. “The property tax abatement is 50 percent on the improvement for a 10-year period. They continue to pay the same taxes that they always have on (existing property), and they pay half of the taxes owed on the new improvement.”
City contract development specialist Mike MacPherson said the local abatement is an important compromise.
“The competition for these businesses is high, and I think it’s just one element of the entire package,” MacPherson said. “I think what makes (the incentive) so attractive is the fact that when you’re starting up a business you have a major investment, and it takes a while to become profitable, so these incentives give a little bit of a break. But at the same time, the break is not so much that it negatively impacts the other taxing entities or the city or the county.”
The new zone, Smith said, also gives the city more options in what types of businesses can receive incentives.
“The enhanced zone allows us to target specific industries,” she said. “So in addition to the manufacturing we’ve been targeting through the existing zone, we will be able to provide incentives to other types of businesses that create or maintain 50 or more jobs. For example, a good part of our economy is inbound call centers like United Health Care and Bank One, and so if those businesses are located within the enterprise zone and they expand and make an investment, they would be eligible for the property tax abatement.”
Council continued the public hearing until the April 4 meeting because the zone follows census tracts, meaning it also includes areas in Greene County and the city of Battlefield. Battlefield has not yet had a hearing on the application.
Meanwhile, council passed a resolution that appointed five of the seven people to serve on the Springfield Enhanced Enterprise Zone Board. That board is also a result of the new state Enhanced Enterprise Zone legislation, which requires a local board to review applications and make annual reports. The seven who will serve are Smith, David Agee, Gary Deaver, John Wanamacher, Greg Williams, Scott Wendt and Dave Coonrod.

Also on the agenda:
• Council passed a bill authorizing a cost-sharing agreement with the Missouri Highway and Transportation Commission for the redesign of Route 266/Chestnut Expressway in connection with the new airport terminal project. It is a $1.4 million project.
• Council heard debate on an ordinance vacating the public rights of way near the western tuning fork west of the square. The ordinance is linked to the proposed College Station development; the area in the proposed ordinance, south of College Street between Campbell and Market avenues, would be part of that new development.