By Debby Woodin and Wally Kennedy
news@joplinglobe.com
A $33 million project to upgrade the Schaeffler Group USA Joplin FAG plant is nearing fruition.
The Joplin City Council has advanced a proposal to grant the company $33 million in industrial revenue bonds to buy and install new equipment that will allow it to manufacture large ring bearings for wind generators.
Greg Tinnell, vice president of human resources for the company’s North America division, in a telephone interview on Saturday, said, “The wind energy business is one of the fastest growing industrial businesses in North America.
“Schaeffler brands INA and FAG are the leading suppliers of all types of bearings and condition-monitoring systems for the wind energy business. This investment will ensure our continued future success in North America,’’ he said.
Under the terms of a proposed agreement between the city and Schaeffler, the city will own the equipment and lease it to the plant while the bond debt is being paid.
According to city documents, the equipment is exempt from personal property taxes because it will be owned by the city, a tax-exempt entity. The city is not liable for the debt, according to terms of the agreement. In addition, the agreement states the issuance of the bonds will not affect the bonding capacity of the city.
The agreement under consideration by the City Council calls for the equipment to be exempt from sales taxes and for personal property taxes on it to be abated by 50 percent for at least four years. However, because the equipment is to be installed in stages, the company may receive additional tax breaks if it adheres to job and wage guarantees it has made in conjunction with the project.
Initial estimates were that FAG would add about 70 jobs at the plant. Tinnell said 25 jobs already have been added.
“This investment adds jobs at the Joplin location and provides the opportunity to take full advantage of the highly trained and skilled employees in Joplin,’’ Tinnell said.
Under the terms of the agreement, FAG must maintain 299 jobs through 2013. From 2013 until 2016, it must have 350 jobs in order to receive those extended tax abatements. The plant is to pay a minimum average hourly wage of $17.50 during the term of the abatement.
Tinnell said, “The state of Missouri and the city of Joplin have offered to provide incentives including tax abatements and training assistance to assist the company with the expansion. These incentives will offset a small portion of the overall costs of the project.’’
The jobs and wage agreement will be checked each year. If the plant does not meet them, there are stipulations in the bond agreement that allow taxing entities to assess a larger portion of the tax bills.
The city began notifying the various taxing entities to be affected last week. A public hearing for representatives of those entities to speak on the proposal is to be held at the council’s next meeting Dec. 7. Final council action on the proposal will come after that hearing.
In addition to Joplin, the abatements would affect the Joplin R-8 School District, the Joplin Special Road District, and the Newton County Fair District, Health Department, Mental Health Board and Library.
Paul Barr, finance director for R-8, said he is reviewing the agreement and the numbers to determine how much the tax abatements will total. He said he had received the city’s documents on the agreement, but that he had questions that he is clarifying with the bond attorneys before he can determine a final amount.
The company plans to install a new, larger forge that will allow it to produce large bearings for the wind energy industry.
FAG work
The FAG plant, located at 3900 S. Range Line Road, currently manufacturers ball bearings for the automotive and railroad industries.
Carthage, Jasper County
: <img src="http://www.joplinglobeonline.com/images/zope/extra.gif" border=0> Joplin considers FAG debt agreement for plant expansion <font color="#ff0000">w/ company info </font>
- Carthage, Jasper County
-
-
Carthage attorney, reformer of revenue department, dies
James R. Spradling, a Carthage attorney who was noted for his reform of the Missouri Department of Revenue in the 1970s, died at 5:50 a.m. Monday at McCune-Brooks Regional Hospital.
-
Bondswoman charged with false imprisonment
A bail bondswoman from Carthage is facing a charge of false imprisonment for allegedly attempting to put a man in jail without a judge’s order, then taking him home and handcuffing him to the banister of a staircase until a friend of the man paid her his bond money.
-
Man’s last statement to be given to defendant
A judge ruled Monday that the Jasper County prosecutor must provide attorneys for Darren J. Winans with a videotaped statement co-defendant Matthew D. Laurin made about the Sheldon murders shortly before killing himself.
-
Carthage proposes 1.6-cent rise in city property tax
A drop in the assessed value of Carthage real estate will translate to an increase of about 1.6 cents in the city’s proposed property tax rate.
-
Open house to celebrate projects at courthouse
Projects completed last year at the Jasper County Courthouse will be celebrated in ceremonies Thursday in the courthouse lobby.
County officials will join representatives of local chambers of commerce and others for a ribbon-cutting and open house to mark the opening of a Route 66 display in the lobby and a new “peace star” atop the building. -
State budget cuts reduce county funds
County officials are bracing for more state budget cuts to translate into a loss of county revenues.
In an effort to balance Missouri’s budget, the state earlier this year cut the amount it reimburses county assessors for work to determine property values. The budget approved by lawmakers for fiscal 2011 calls for cutting the amount the state reimburses counties to house prisoners bound for state lockup. -
Jo Ellis: County home to rare yellowwood tree
In late spring, drifts as white as snow fill the gutters and curbs on the east side of the Jasper County Courthouse. It isn’t snow, of course; it’s the fallen petals of the yellowwood tree that grows squarely in front of the door to the Jasper County Extension office.
-
Jasper County Commission gets building project update
Plans to close out one building project and start another were reviewed by the Jasper County Commission last week.
Darieus Adams, Western District associate commissioner, met Thursday with officials of the firm who designed a $292,400 project to upgrade the lighting and make other changes to make four county-owned buildings more energy efficient. -
Two men running for associate judge in 39th Circuit take case to court
Two men running for associate judge in Missouri’s 39th Circuit began battling it out in a Jasper County courtroom this week.
Jasper County Circuit Judge Gayle Crane heard arguments Wednesday concerning the disclosure of documents sought by Robert “Bobby” George, Aurora, the current Lawrence County prosecutor. -
Unveiling ceremony celebrates CHS tiger
Kandy Frazier, Carthage High School principal, summed it up once the new addition to the CHS campus was unveiled Thursday.
The bronze tiger sculpture created by Carthage artist and sculptor Bob Tommey, she said, is the kind of work that would be found at a big university. - More Carthage, Jasper County Headlines
-
Obama Scraps Birth Control Mandate
US Airmen's Killer Sentenced to Life in Germany
Navy Names Ship for Gabrielle Giffords
Raw Video: Deadly Blasts in Syria
Romney Slams President Obama at CPAC
Gingrich: Pres. Obama 'waging War on Religion'
5 Killed in Wrong-way Crash on I-10 in La.
Uzbek Man Pleads Guilty in Plot to Kill Obama
Denver's Largest-Ever Drug Bust Nets Dozens
Marines: No Punishment for Nazi-like Flag
Vets Look to Translate Military Skills Into Jobs
Raw Video: School Bus Burst Into Flames
LA School Reopens Amid Sex Abuse Scandal
$25B Settlement Reached Over Foreclosure Abuses
Pentagon: Allow Women Closer to Front Lines
LA School in Sex Abuse Scandal Reopens
Raw Video: Italy's Mount Etna Bursts Into Life
Greeks March; Angry Despite Debt Deal
Air Force Airlines: Leaders Get Polished Service
Ga Girl Fights Off Kidnapper at Walmart
