|
|
|
Neosho, Mo. —
With the upcoming Neosho budget allowing no provision for the Neosho Area Chamber of Commerce to receive funding from the economic development sales tax, its advisory committee has agreed to use funds solely for construction of another speculative building.
In a 4-1 vote Tuesday morning, the committee agreed to use funds derived from an eighth- cent sales tax to build another spec building. Harlan Moore, Neosho’s interim city manager, has said that by law, proceeds from the sales tax are only supposed to be used for capital improvements. Voters approved an eighth-cent sales tax to fund economic development in 1994.
Ray Stipp, chairman of the economic development sales tax advisory committee, said he recently met with Moore, Neosho Mayor and committee member Richard Davidson, and City Attorney Steve Hays concerning the state statute governing economic development.
Moore said language of the state statute in effect at the time the ballot issue passed made the issue a capital improvement tax, and Davidson said the statute’s language indicated it should be used solely for the purpose of capital improvement.
Davidson cast the dissenting vote Tuesday morning.
“I would have preferred to see the money left in a reserve account until we receive more clarification on the state statutes,” he said.
Stipp said he has been in contact with both the state’s department of revenue and the Missouri Municipal League on the issue, with a representative of the department of revenue telling him it was up to the city to continue collecting the tax.
The move comes after last week’s announcement that the chamber would receive zero dollars in funding from the economic development sales tax.
This fiscal year, $94,656 was budgeted out of the tax for the chamber. The upcoming budget allows no allocation for the chamber, or for marketing promotions, professional services, conferences and memberships, for retail stimulus or for zoning, as in previous years.
Board member Rick Butler said he didn’t believe the issue was “cut and dried.”
“The way I understand it, the funds collected will be of no help to the city because of the financial situation that we’re in, is that right?” he asked Moore.
“That’s correct, because of the ballot question,” Moore replied.
“In the meantime, we know we need a spec building,” said board member Larry Neff. “I’d rather see the money used for something we need anyway rather than say ‘economic development is over.’”
With the upcoming Neosho budget allowing no provision for the Neosho Area Chamber of Commerce to receive funding from the economic development sales tax, its advisory committee has agreed to use funds solely for construction of another speculative building.
In a 4-1 vote Tuesday morning, the committee agreed to use funds derived from an eighth- cent sales tax to build another spec building. Harlan Moore, Neosho’s interim city manager, has said that by law, proceeds from the sales tax are only supposed to be used for capital improvements. Voters approved an eighth-cent sales tax to fund economic development in 1994.
Ray Stipp, chairman of the economic development sales tax advisory committee, said he recently met with Moore, Neosho Mayor and committee member Richard Davidson, and City Attorney Steve Hays concerning the state statute governing economic development.
Moore said language of the state statute in effect at the time the ballot issue passed made the issue a capital improvement tax, and Davidson said the statute’s language indicated it should be used solely for the purpose of capital improvement.
Davidson cast the dissenting vote Tuesday morning.
“I would have preferred to see the money left in a reserve account until we receive more clarification on the state statutes,” he said.
Stipp said he has been in contact with both the state’s department of revenue and the Missouri Municipal League on the issue, with a representative of the department of revenue telling him it was up to the city to continue collecting the tax.
The move comes after last week’s announcement that the chamber would receive zero dollars in funding from the economic development sales tax.
This fiscal year, $94,656 was budgeted out of the tax for the chamber. The upcoming budget allows no allocation for the chamber, or for marketing promotions, professional services, conferences and memberships, for retail stimulus or for zoning, as in previous years.
Board member Rick Butler said he didn’t believe the issue was “cut and dried.”
“The way I understand it, the funds collected will be of no help to the city because of the financial situation that we’re in, is that right?” he asked Moore.
“That’s correct, because of the ballot question,” Moore replied.
“In the meantime, we know we need a spec building,” said board member Larry Neff. “I’d rather see the money used for something we need anyway rather than say ‘economic development is over.’”
Neff said since 1996, having a spec building has been an economic boon to Neosho. In February 1994, economic development officials met with a consultant from St. Louis, showing them a site on Malcolm Mosby Drive and plans for a 50,000 square foot spec building. The consultant represented BASF, who opened the Neosho plant in June 1996.
Between 1996 and 1999, the city “landed” Daisy Manufacturing, Brass Eagle, Twin Rivers, Ozark Plastics and Scholastic because of the spec building, although none of these businesses ended up locating there. However, in early 2000, Applegate Steele signed a lease purchase agreement, spending $350,000 before the cost of steel and mad cow disease impacted their business in 1996. La-Z-Boy then leased it for a warehouse until the building was sold to Missouri Sugars, which currently occupies the building.
A second spec building was erected by NABIFI in 2006. This building was occupied by Scholastic in 2008 after flooding forced the company out of its Harmony Street location, which kept some 350 jobs in Neosho.
