Jo Ellis: Proposal may change Carthage's economy

Discussion

October 14, 2007

Anonymous The Joplin Globe Sun Oct 14, 2007, 09:05 PM CDT

CARTHAGE, Mo. — Negotiations being conducted by John Bode, Carthage’s economic-development director and president of the Carthage Chamber of Commerce, and Americold Logistics could have long-term effects on the city’s economic future.

The proposal is to market land owned by Americold, situated just north of the city limits, to corporations needing large tracts of land with utility infrastructure. Bode said that within the past year, he has had at least three inquiries about such properties. Because the city has no available land fitting that description, he has passed those opportunities to other cities.

Extending infrastructure to the 850 acres owned by Americold could be done within a reasonable time period and cost, Bode said, “which makes it attractive to prospects.” Having the property designated as an enhanced enterprise zone with tax-break incentives would make it even more attractive. Constructing utilities for development at other sites would take at least seven years. “The cost to get it ready would be huge,” Bode said.

Part of the land is being mined for rock under the surface and some is not, but Bode said that with certain restrictions and standards, that would not be a deterrent. Leggett & Platt Inc.’s large Flexolator plant is constructed over mined land, for example. Whether the property is developed through Americold or purchased and resold by the city has not been decided, but development of the land “would be a definite advantage to (Americold),” Bode said. While Americold has not formally authorized the plan, it has approved the concept, he said.

The city does not have money to purchase the property. Bode said a half-cent sales tax designated for industrial-site development could provide about $900,000 a year. To accelerate the procedure, the city could seek approval of a bond issue to be repaid by the sales-tax revenue. Several steps are needed to move the proposal forward. Americold would have to request annexation, and the city would need to secure enhanced enterprise zone status and approve various ordinances, resolutions and agreements with Americold.

Bode emphasized that developers in an economic enhancement zone must fall under the higher-paying job categories of utility, manufacturing, wholesale trade, transportation and warehousing, information, finance and insurance, professional, scientific or technical, waste management and cleanup services, general management of companies, or administrative and support business.

To be eligible for the tax breaks, employers must pay at minimum the average county wage of $14.20 an hour and provide employee benefits. The state-level tax incentive is a 50 percent tax reduction for 10 years.

“Our local incentive starts after they pay the average county wage and have at least 10 employees,” Bode said. Under the current matrix, the tax breaks improve according to the increase in the number of employees and wages.

The local enhanced enterprise zone board administers the city’s two previous zones: Carthage 1, which covers the city from Garrison Avenue west and encompasses Leggett & Platt’s headquarters, and a joint enhanced enterprise zone, administered with Joplin, covering the south portion of the city and encompassing Precious Moments. The proposed zone would be designated Carthage 2.

Bode said Carthage is one of the top three candidates for a project seeking 70 acres. He said his new proposal “would give us the ability to come in and offer this land for immediate projects.”

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Jo Ellis: Proposal may change Carthage's economy

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