State approves Springfield's enhanced enterprise zone

The Missouri Department of Economic Development July 25 approved the city’s Enhanced Enterprise Zone with the intent to attract new businesses and encourage expansion. The new zone is more than double the size of the previous zone at 68 square miles and provides incentives to a longer list of industries.

In April, Springfield City Council approved extension of the original zone, which expired at the end of 2004. It assisted in more than $458 million in new investment and helped to create more than 6,300 jobs in Springfield, according to the city.

Designated industry clusters in the zone determine if a business is eligible for a 50 percent tax abatement on improvements for 10 years. Eligible industries include manufacturing, warehousing, mining, warehousing and distribution, wholesale trade and processing wholesale materials for recovery.

The abatements also are available to any business that employs 50 or more people working an average of 35 hours per week, Springfield Economic Development Director Mary Lilly Smith said.

“(The zone) improves the business climate for people to make an investment, and it’s our attempt to attract new businesses and encourage them to expand,” she said.

Industries excluded from the incentive are gaming, retail trade and eating and drinking establishments.

The boundaries of the zone were drawn based on unemployment rates and salary averages of the area. Only areas with at least 5.39 percent unemployment and more than 81 percent of households living at or below the median income were eligible, Smith said.[[In-content Ad]]