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May 25, 2010 For more information, contact: Enhanced Enterprise Zone Approved for Maries County The Missouri Department of Economic Development (DED) has announced approval of Enhanced Enterprise Zone (EEZ) designation for Maries County. This designation, signed May 10, 2010, will allow county officials to continue to move forward with economic development efforts. Maries County becomes the 80 th zone in the state. The application, which included a redevelopment plan, was prepared by the Maries County Enhanced Enterprise Zone board in partnership with Meramec Regional Planning Commission. “I want to thank all the board members and Bonnie Prigge of MRPC for all the work that went into the application,” said Maries County Presiding Commissioner Ray Schwartze. “I do hope that businesses will utilize it now that we have it.” The Maries County EEZ board includes Chairman Ray Schwartze, Maries County presiding commissioner, Dr. Zach Templeton of Belle, Angie Thompson of Vienna, Richard Huse of Belle, Lesley Clark of Brinktown, Terry Helton of Vienna and R.K. Slinkman of Belle. 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 Maries County with the exception of most of Boone Township—more specifically Census Tract 9802.98-1 in Boone Township—in northwest Maries County. Qualifying businesses in the Maries 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, who prepared the application. “It is based on the NAISC code that the business files its taxes under,” she added. The Maries 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 job 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 Prigge. “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 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 Prigge. 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.” 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 Maries County EEZ can contact Ray Schwartze at 573-422-3388, 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 |