Council signals willingness to extend $32M in bonds to Andy’s Frozen Custard

Last edited 1:39 p.m., June 24, 2026 [Editor's note: The headline of this story has been corrected to note that the $32 million package consists of bonds and not tax abatements. Other clarifying language appears throughout the story..]

Springfield City Council signaled its willingness to extend up to $32 million in incentives to Andy’s Frozen Custard with a vote last night.

Council voted 7-0, with members Derek Lee and Bruce Adib-Yazdi absent, to approve a resolution that would provide Chapter 100 industrial development bonds to the Springfield-based company.

Chapter 100 of Missouri law permits cities and counties to issue industrial development bonds to finance a wide variety of commercial facilities and equipment, and to offer real and/or personal property tax abatement, sales tax exemption on construction materials and sales tax exemption on tangible personal property, according to public-private economic development organization Missouri Partnership, which aims to attract development within the state, the website states.

The industrial development revenue bonds would allow the company to build a headquarters campus at the corner of East Division Street and North LeCompte Road. The campus would include 43,200 square feet of office space spread among three buildings and a 9,600-square-foot industrial warehouse.

Andy Kuntz, CEO of Andy’s Frozen Custard, said in previous SBJ reporting that a new test kitchen is envisioned at the site as well.

A two-phase project would have the first two office buildings completed in 2028, with the rest to be finished by 2033, Matt Schaefer, assistant director of economic vitality, told council prior to their vote.

Kuntz signaled earlier this month that Andy’s Frozen Custard might relocate outside of the Queen City because of increasing construction costs, though staying in Springfield was his preference. The headquarters is currently based in rented commercial space in downtown Springfield at 211 E. Water St.

Schaefer said the Chapter 100 bonds would retain 54 existing headquarters jobs and create 16 new ones with an average wage of $94,766, approximately 1.7 times the Greene County average.

The use of Chapter 100 bonds requires new investment in real property of at least $5 million or the creation or retention of at least 100 jobs with an average wage equal to or greater than the county average, Schaefer said in his presentation, citing the city’s economic development incentives policy manual. While the abatement typically mirrors enhanced enterprise zones in the city with a 50% abatement for a period of 10 years, council may consider an increased exemption level where jobs created or retained pay 150% or more of the county average wage.

Schaefer said the city’s risk and exposure are minimal, with the special, limited-obligation bonds paid solely from lease payments received by the city. He said city funds are not used to pay for project costs. The city’s professional and legal fees are covered by the applicant, and a default by the company will not impact the city’s credit rating or general fund, he said.

Schaefer outlined the process for issuing Chapter 100 bonds, and council’s approval of the resolution of intent comprises an early stage – the second step after a prefunding agreement wherein the applicant, Andy’s, agrees to cover the city’s outside legal counsel and consulting expenses.

Five steps remain: plan and document preparation, notice of public hearing, a council first reading with public hearing, a council vote and then closing, Schaefer said.

Andy’s requests tax abatements that would last 25 years and would be 90% for the first 10 years, 75% for the next five, 60% for the five years that follow and 50% for the last five.

Schaefer said the project is contingent upon the city providing the incentives. He added that passage of the resolution does not grant the incentives but rather greenlights the company to prepare its development plan.

In an interview prior to the meeting, City Manager David Cameron expressed his support for keeping the Andy’s Frozen Custard headquarters in Springfield.

“It’s a legacy company founded right here,” Cameron said. “Those are people that have invested in your community for the long term and served the community extremely well in ways most people don’t even see.”

He added that it’s important to hold on to a legacy company.

“No one would want to see what started here end up somewhere else,” he said. “Andy’s is a great community partner with good people all around.”

Andy’s opened its first location in Osage Beach in 1986 and soon launched locations in Springfield, according to the history section of the company’s website. Andy’s now operates in 15 states, the website says.