Proposed enterprise zone includes parts of Cape, Jackson, rural areas

City leaders, school officials and local business representatives met to discuss forming an enhanced enterprise zone in Cape Girardeau County Thursday at the Osage Community Centre.

Carol Shoemaker of the Missouri Department of Economic Development shared information about the application process and what's been done in the other 87 enhanced enterprise zones across the state.

The boundaries of a proposed zone in Cape Girardeau County were presented for the first time.

The area includes parts of Cape Girardeau and Jackson in addition to rural, unincorporated areas of the county.

To qualify for an enhanced enterprise zone designation, areas must meet certain unemployment and poverty level guidelines.

Enhanced enterprise zones offer companies looking to locate or expand within their boundaries tax abatements as an economic development incentive, explained Mitch Robinson, executive director of Magnet, which hosted the meeting.

"It gives businesses options," said Robinson adding that proponents of an enhanced enterprise zone have discussed using a sliding scale for offering tax abatements based on the number of jobs and the investment companies bring.

It is up to each community to decide how much of a tax incentive to offer and which types of businesses will qualify for the benefit, Shoemaker said.

The state requires enhanced enterprise zones to offer a minimum property tax abatement of 50 percent for 10 years but allows for up to 100 percent tax abatement for up to 25 years.

"I would never recommend that," Shoemaker said. "I don't see any reason to give everything away if you don't have to. You want to give them enough to entice them to come to your area."

Superintendents Dr. Ron Anderson of the Jackson School District and Dr. Jim Welker of the Cape Girardeau School District said they would like to have input into determining what levels of tax abatement are offered.

"We are trying to understand what this is all about and what it means for us," Welker said. "We're facing tough economic times, too, with cutbacks from the state and we have to be careful and cautious as we move forward."

Both superintendents said they understand the importance of economic growth but that it should be balanced with the needs of the schools which "live off property taxes."

Before Cape Girardeau County can apply for an enhanced enterprise zone a resolution must be passed by the county commission establishing board to oversee the zone and review applications for tax abatements.

The seven-member board will include one representative chosen by all the school districts in the zone, one representative selected by all the special taxing districts within the zone, and five members appointed by the presiding commissioner.

The average enhanced enterprise zone in Missouri has 1.83 businesses and 56 jobs paying an average of $33,945. The average investment in each zone is $15 million. However, Shoemaker said, of the state's 87 enhanced enterprise zones, there are 41 that have not had any businesses locate there.

Shoemaker said interest from businesses wanting to locate in Missouri has been increasing in recent months.

"I have 75 proposals from companies wanting to come to Missouri on my desk right now," she said.

mmiller@semissourian.com

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Pertinent address:

1625 N. Kingshighway, Cape Girardeau, MO