ENTERPRISE ZONES MOVE FORWARD; TWO OF FIVE NEW ZONES APPROVED BY LEGISLATURE ARE IN REGION

Two of the five new enterprise zones approved by the joint legislative committee on economic development, policy, and planning are from Southeast Missouri.

Recently, the committee of six senators and six representatives granted new enterprise zone designations for a large portion of Madison and Iron Counties and for Ripley County.

The zones were designated under a new law that was passed last year. Rep. Joe Driskill, D-Poplar Bluff, who is chairman of the House Commerce Committee and helped draft the bill, gave the power of designating enterprise zones to a joint legislative committee.

Previously, zones were approved by an act of the legislature.

"Instead of us doing them piecemeal, depending on who had the muscle to get an amendment put on a bill, we are now allowing areas to apply for enterprise zones through the Department of Economic Development," explained Driskill. "They weed out the applications and make recommendations to us.

"This is the first time we have approved applications this way, and as far as I know, the first time a joint committee of the House and Senate has acted on administrative agency recommendations, other than for funding."

Driskill, who is a member of the joint committee and will become its chairman in 1993, noted that the new law provides for establishing 18 new enterprise zones, which means there are 13 left. Statewide, there are 45 enterprise zones.

Under legislation sponsored by Rep. Larry Thomason, D-Kennett, that passed last year, the Department of Economic Development has the power to de-certify enterprise zones that are no longer needed. The legislation also put tighter restrictions on the kinds of businesses that could receive the tax abatements provided by enterprise zones.

The enterprise zone law provides state and local tax incentives to businesses that expand or locate in the zones.

One of the areas hoping to secure a designation soon is Mississippi County, including a large part of the city of Charleston. State Rep. Ollie Amick, D-Benton, said he is pleased with the way local officials have been working together and is optimistic a designation will eventually be received.

At a recent public hearing in Charleston, Mike Heimericks, coordinator of enterprise zones for the department, also reacted favorably to the local support and noted there was no opposition to the effort.

The joint committee meets four times a year and is expected to consider Mississippi County later in the year.

Rep. Jim Graham, R-Fredericktown, explained that the new zone in his area includes the larger parts of Federicktown and Ironton and the approximately 20 miles between them.

He noted that both communities share a common labor force, but have been hit hard by recent plant closings. Graham pointed out that three existing companies in Fredericktown have expressed their intention to expand because of the zone, creating approximately 160 additional jobs.

Fredericktown was especially hard hit last year by the decision to close Brown Shoe Co. in the city, costing 385 jobs. In 1984, a Brown plant with 250 jobs was closed in Ironton.

Other major closings in recent years include the loss of about 90 jobs in 1990 when the Con P. Curran plant in Fredericktown close, and the loss of 425 jobs during the 1980s in Pilot Knob when a pellet company closed.

The zone area has a population of 12,314, with an unemployment rate of 17.36 percent, and 65.86 percent of the residents of the zone at the poverty level.

Graham praised Madison County Presiding Commissioner Ken Pate and Iron County Presiding Commissioner Ron Murphy for their leadership in getting the zone approved.

"This is something I think the community has been looking forward to. All of the entities in both counties worked closely together to make this happen and I congratulate them on this," said Graham. "You can't get this done without a lot of local effort."

The local tax incentives provide for an abatement of 60 percent in property taxes over the next 10 years, followed by a 30 percent cut the next five years.

"Now that this is official, they can use it as a tool to bring a little more economic stability and growth to our communities that so badly need it," remarked Graham. "It won't be an overnight answer, but it is something they can use and work with to attract industry and new jobs."

The enterprise zone for Ripley County includes the cities of Doniphan and Naylor, and the area in between.

The population within the zone is 9,504, with an unemployment rate of 10.18 percent and 73.22 percent of the residents living at the poverty level.

Officials point out in the application review that although Ripley County has grown in recent years, per capita income remains very low, ranking second from the bottom in the state in 1989 at $8,294. Almost 17 percent of the workforce commutes outside the county.

Pending approval of the zone, the report shows a company is considering locating in Doniphan to provide 30 new jobs, making an $800,000 investment.