Members of Springfield City Council on Feb. 22 unanimously approved a resolution establishing the Economic Development Incentives Policy Manual as the city’s guidelines for use of economic development incentives.
A December 2007 state audit of the city criticized its use of economic development incentives, in particular, public funds related to construction of downtown parking garages. The city responded by defending its use of funds, but also, by pledging to create a comprehensive incentives policy, according to Economic Development Director Mary Lilly Smith.
In May 2009, an interim policy was established, but Smith said it was never submitted to council for adoption because her staff was awaiting a report from Atlanta-based consultants Market Street Services Inc. commissioned by the Springfield Business Development Corp. through the Springfield Area Chamber of Commerce.
Smith said she and her staff reviewed the policies of a dozen other communities in Missouri and Kansas, its own experiences with businesses and council, as well as Market Street’s report in constructing the manual that would be used to attract and retain developers in Springfield.
“It provides a framework for developers who wish to work with the city, and lends to a business-friendly attitude, which we have been trying to craft,” Smith said.
The manual details available incentives in five categories.
• Special taxing districts: State law allows the city to establish or approve districts that can impose taxes in order to pay for public improvements or to eliminate blight.
• Property tax abatement: Developers can receive property tax abatements through programs geared toward redevelopment and job creation for a set period of time.
• Redirection of incremental tax increases: Tax increment financing can use all or a portion of taxes collected in a given area to pay back a developer for project costs.
• Loan programs: Loans can be offered in targeted areas for acquisition and redevelopment of commercial properties.
• Brownfields programs: Assistance is available for companies that execute environmental assessments and cleanup projects.
Rob Dixon, manager of business development for the Springfield Area Chamber of Commerce, said the policy manual would help the city become more attractive to employers.
“This gives Springfield a competitive advantage in helping bring others here and keep businesses here that are continuing to grow,” Dixon said. “It lets everyone know what the rules are in advance.”
Policies outlined in the manual include judicious use of incentives, and granting only those incentives necessary to make a project financially feasible. Also, according to the policies, all discretionary incentives are subject to a “but for” test, which means that council must find a project would not occur, or would occur on a significantly smaller scale, were it not for the incentives offered.
Councilman Jerry Compton said the manual was easy to read and follow.
“It’s a good tool to use,” he said.
Green-building policy Council adopted the Springfield Green Building Policy after debating a provision that would allow the city manager to make exceptions to the rule without its approval. The resolution declares that all city-owned buildings would be constructed to meet the silver-level certification using the Leadership in Energy and Environmental Design 2009 New Construction and Major Renovations Rating System.
At issue was Section 6 of the resolution, which requires the city manager to notify council when he deems an exception to the policy is appropriate. To have public discussion on the project, three members of council would need to provide a written objection to the exception within five days of notification.
The benefits of promoting energy-efficiency in city-owned construction never appeared to be up for debate. Mayor Pro-tem Dan Chiles, however, said the exception rule effectively cancelled out the will of the resolution.
“Our intention would just disappear because of Section 6,” Chiles said after he made a motion to strike the provision.
Councilman Jerry Compton said he thought not having a possibility for exceptions was “short-sighted.”
“We don’t need a black-and-white rule that’s not putting cost into the equation,” Nick Ibarra agreed.
Councilman Doug Burlison said he thought the exception rule, which could be challenged by council if used, provided adequate checks and balances.
Citing a bright future for LEED certification, Mayor Jim O’Neal said the resolution would help reduce long-term energy costs associated with building maintenance.
Both the effort to remove Section 6 from the original resolution, and the amended resolution, which gave council the option to fight the exception, failed by 5-4 votes.
Before the amended resolution went on to see a 9-0 approval, it was revised to be reviewed in two years, instead of four.[[In-content Ad]]
Under construction beside the existing Republic branch of the Springfield-Greene County Library District – which remains in operation throughout the project – is a new building that will double the size of the original, according to library officials.
