Enterprise zone redesignated for seven years

by Karen E. Culp

SBJ Staff

Springfield's enterprise zone program will continue for at least another seven years. The state tax-credit program was redesignated for another seven years, the maximum allowed by the state law enabling such zones.

"The enabling legislation sunsets in 2006, so we're approved through the life of the legislation. It is pretty incredible for our community, to look at how successful our zone has been. A lot of that can be attributed to the accountants and CPAs who have made their clients aware of the benefit," said Mary Lilly Smith, economic development coordinator for the city.

The enterprise zone in Springfield extends roughly through the city's center and includes the Springfield-Branson Regional Airport to the west and the Partnership Industrial Center to the east.

Businesses that locate within the zone can qualify for state tax credits or a property tax abatement if they are manufacturing or warehouse-type businesses though a few other types of businesses qualify and if they create at least two new jobs and $100,000 in new investment.

The tax benefits are $400 for each new job and $400 for each employee hired from within an enterprise zone. An employee who is "difficult to employ" will earn the company another $400 in tax credits. Training a difficult-to-employ worker is also worth $400 in tax credits, but the training credit is a one-time-only tax credit. All of the other credits can be used for 10 years.

Property tax abatement of 50 percent for 10 years is available for facilities used for manufacturing, mining, wholesale distribution or warehousing.

Smith said Springfield's zone has been outstanding when compared to the 62 other such zones in the state. It has ranked No. 2 in job creation and No. 3 in the number of companies certified, Smith said. The zone was designated in 1984, two years after the enabling legislation was passed.

The zone is now 30 square miles, a slight expansion from the 29 square miles it was prior to this redesignation.

The area was expanded with the redesignation in order to fill in some spaces where it gapped, such as along Kearney Street and West Bypass, and to include land in and around Springfield Underground and the tract of land near it that Springfield ReManufacturing purchased to use as a consolidated campus for its businesses.

"Having this designation certainly makes the land more desirable for development," Smith said.

Both Smith and Greg Williams, vice president of economic development for the Springfield Area Chamber of Commerce, point to the Partnership Industrial Center as an indication of the success of the enterprise zone program.

Filled with manufacturing operations in nearly half the time expected, the center is not only a good example of industry attraction, but of retention and expansion of existing Springfield businesses, Williams said.

"The enterprise zone program has been effective in making the park attractive for development[[In-content Ad]]