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Sept. 17, 2010 For immediate release Bonnie Prigge (573) 265-2993 Enhanced Enterprise Zone Approved for Gasconade County The Missouri Department of Economic Development (DED) has announced approval of Enhanced Enterprise Zone (EEZ) designation for Gasconade County. This designation, signed Aug. 25, 2010, will allow county officials to continue to move forward with economic development efforts. Gasconade County becomes the 87 th zone in the state. Click to see map. The Gasconade County Enhanced Enterprise Zone board prepared the application in partnership with Meramec Regional Planning Commission. The application included a redevelopment plan. “I want to thank all the board members and Bonnie Prigge of MRPC for all the work that went into the application,” said Gasconade County Presiding Commissioner Ron Jost. “We were able to get nearly the entire county included in the zone, and we hope that this new designation will provide that extra help for our local businesses to expand and grow in Gasconade County.” The Gasconade County EEZ board includes Chairman and Gasconade County Associate Commissioner Jerry Lairmore, John Tracy and Mike Knehans of Owensville, Jim Grebing of Hermann, John Estes of Rosebud, Jim Decker of Bland and Dr. Russell Brock of Gasconade County R-2 Schools, Owensville. The EEZ designation offers two incentives—property tax abatement and discretionary tax credits—to qualifying companies. To qualify, a new or existing company must be located in the zone, must invest at minimum of $100,000, create two new jobs and pay at least 50 percent of its employees’ health insurance costs. The zone encompasses most of Gasconade County with the exception of most of the Bourbois Township in Census Tract 9605-02 in the far southern section of the county. The Gasconade EEZ includes all cities and communities in the county, explained Lairmore, including Owensville, Hermann, Bland, Rosebud, Gasconade and Morrison. “We had tried for a couple of years to find a way to include all of our cities in the zone, including land adjoining the cities where future development is most likely to occur. Then MRPC discovered that we could qualify under a disaster declaration, and that allowed us to include most of the county.” Qualifying businesses in the Gasconade County EEZ are the same as those allowed by the EEZ legislation. “With the exception of retail, gambling, education, religious and eat and drinking establishments, most other businesses are eligible,” said Bonnie Prigge, assistant director of MRPC and administrator for the Gasconade Valley Enterprise Zone. “It is based on the NAISC code—the industry code— that the business files its taxes under,” she added. The Gasconade County EEZ board set the local incentive, which is a minimum of a 50 percent abatement on real property tax improvements for 10 years up to an 80 percent abatement for 20 years, based on new jobs created, average payroll and private investment. “It is important to know that any property currently on the tax rolls will remain to be taxed as usual,” explained Jost. “The incentive applies only to new construction or major renovations that would increase the value of the property. The idea is that the EEZ incentive provides the impetus for the project moving forward and the new investment occurring.” Qualifying businesses also have the opportunity for state tax credits that are issued at the discretion of the Missouri Department of Economic Development (DED) and are available on a first come, first serve basis. “This program is really designed to help your smaller existing industries that don’t meet some of the requirements of the state’s larger incentive programs,” said Lairmore. “Several Owensville industries were able to create jobs and take advantage of the tax credits and property tax abatement under the old enterprise zone program, and we hope we have the same success with the new EEZ.” To get all the benefits available, a company must fill out the appropriate forms and get DED’s approval before they start the project, Prigge emphasized. “If an expanding company starts the project without DED approval on tax credits, they will lose that incentive,” she added. “Please give us a call or contact DED if you have a potential project.” Hermann Community and Economic Development Director Jim Grebing is letting Hermann industries know about the new incentive. We are excited about the possibilities,” Grebing said. “This is the first time that Hermann has been a part of an enterprise zone, and we feel fortunate that MRPC and the Gasconade Valley Enterprise Zone worked hard to include Hermann. The enhanced enterprise zone is a good program and could be enough of an incentive to encourage a company to move forward with a project,” Grebing said. “It is a particularly effective tool for job creation and retention in smaller communities like Hermann.” The Gasconade Valley Enterprise Zone (GVEZ) covered the cost of the application process, which took many months to achieve. GVEZ had encouraged the formation of county-level zones once it was known that a multi-county zone was not possible with existing economic data and the original enterprise zone was nearing expiration. The former enterprise zone program, which the GVEZ was formed under, no longer is able to offer tax credits because of changes in the state law. The Enhanced Enterprise Zone program was implemented in 2004. Enhanced enterprise zones are specified geographic areas designated by local governments and certified by the Department of Economic Development. Zone designation is based on certain demographic criteria, the potential to create sustainable jobs in a targeted industry and a demonstrated impact on local cluster development. Persons needing more information on the Gasconade County EEZ can contact EEZ Chairman Jerry Lairmore at 573-437-3972 or 573-301-0636 or Bonnie Prigge at MRPC at 573-265-2993 or by email at bprigge@meramecregion.org or visit the DED website at http://www.missouridevelopment.org/topnavpages/Research Toolbox/BCS Programs.html |