An effort to revitalize economic activity in Daviess County is being spearheaded by Richard Mooney, economic development coordinator for the City of Pattonsburg.
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With cooperation and approval from the Daviess County Commissioners, an official application to form an Enhanced Enterprise Zone has been obtained from the Missouri Department of Economic Development.
Enhanced Enterprise Zones are economically disadvantaged areas which have been targeted and approved for preferential tax treatment by the state. The areas are well-defined geographically. In some cases, these areas are allowed to offer special government services.
It is hoped that by setting aside certain governmental rules and regulations — generally in the form of tax breaks — the zoned area will be able to attract new business and support new investment.
"Bottom line is that any economically distressed area that has been officially designated as an Enhanced Enterprise Zone, will immediately be placed in a position of equal footing with much larger metropolitan areas for attracting new jobs and industry," said Mr. Mooney.
Daviess County, like all rural communities, has seen an ever increasing migration of rural youth away from the farms and small hometowns to metropolitan areas with larger factories and corporate offices.
"As things stand right now, the number one ‘export’ of Daviess County, and the most prized commodity produced in every community is our children," said Mr. Mooney.
He worries that the current trend will lead to the total decay and eventual disappearance of rural communities as we know them. Another worry for rural areas is the "global economy" brought about by modern technology.
"Not long ago, the main competitor of any rural business was the guy next door or the person with a similar business," he said. "Today, rural communities must be able to compete for business not only in this county, but in other states, and even with countries half way around the globe."
The creation of new jobs heads the list of benefits hoped for through the Enhanced Enterprise Zone.
Mr. Mooney believes Daviess County is ideally situated for new business development. The county is centrally located to both coasts. Abundant land is available. A ready work force is on hand.
"We can still proudly say that we have workers that are willing to put in an honest day’s work for an honest day’s pay," he said.
But there are other places that offer green grass, blue sky and hard workers.
Mr. Mooney believes that by designating as much of the county as allowed as an enhanced enterprise zone, it will be in a position to offer incentives to companies that those other locations cannot. And this will have the biggest impact on the "bottom line" for a new or expanding business.
The most attractive incentives offered by an enhanced enterprise zone are state tax credits and local real property tax abatement. The amount of the abatement and length of time it would be allowed to a given company would vary.
Only specific types of industries are "targeted." Usually these are industries that will provide the most jobs, the highest pay scales, etc. Mr. Mooney believes these types of industry are those on the cutting edge of new technologies, such as producers of alternative energy, bio-medical device manufacturing, life sciences industries, etc.
At first glance, it may seem like the county would be giving away potential tax revenues. Mr. Mooney believes that any tax revenue lost would be easily recouped.
"Any company large enough to save that kind of money through tax abatement is going to be large enough to employ a significant number of workers," he said. "Which will in turn spark new housing projects, new retail ventures. Each of these paying taxes, and generating more and more business with this county."
As economic developer for the City of Pattonsburg, Mr. Mooney’s original idea was forming an enhanced enterprise zone within his own city limits. But after talking with officials in Jefferson City and getting a handle on the criteria required for such a zone, he discovered that Pattonsburg by itself does not encompass a large enough area with a large enough population to form a zone.
During this time, state officials pointed out to Mr. Mooney that nearly the entire county of Daviess could qualify for designation as an Enhanced Enterprise Zone, if it chose to do so.
Mr. Mooney talked with the Daviess County Commissioners who agreed with him that it would be in the best interest of the entire county to apply jointly.
The boundaries and legal description for the zone have been agreed upon. An official application to form an EEZ has been obtained from the Missouri Department of Economic Development.
Before that application can be submitted to the state, a seven member board of directors must be formed. This board is required to include four members who can serve as representatives of current tax supported entities. The other three positions may be filled by any "voter qualified, civic minded citizen or interested party" living within the boundaries of the proposed zone.
The four seats on the board from tax supported entities have been tentatively filled. The names must be submitted to and approved by the county commission.
The board must be formed and sworn in. Specific "targeted" industries need to be identified and agreed upon. Abatement percentages and length of time the abatement is to be offered needs to be decided. Then the application for formation of the Enhanced Enterprise Zone may be submitted to the state for denial or approval.
If approved, the state will then require a public hearing for those who have questions or concerns. Once those concerns are addressed, the official designation as an Enhanced Enterprise Zone is made.
The State of Missouri will then turn the operation of the zone over to the county entirely, Mr. Mooney said. The state would only serve in an "advisory capacity" and only as needed.
Local zone administrators and the EEZ board would operate the zone and make sure that any company offered the incentives remains in compliance for the full term of the agreement. Companies would be required to file quarterly reports. Any company not in compliance could be penalized and required to repay any and all taxes that were originally abated.
As economic developer for Pattonsburg, Mr. Mooney has experienced a lot of frustration with bringing new jobs to his town.
"I’ve had great success with industry showing an interest in our city, but not with anybody committing," he said.
He said the building that formerly housed the cap factory in Pattonsburg has generated interest from companies as far away as China and Russia. One company that inquired made snacks for hotels and airlines, another was an automotive parts company.
Mr. Mooney’s attempts to get wind turbines built in Pattonsburg was rejected, even though the new town was designed to take advantage of solar and renewable energy and he was told the hill-top community was well suited for a wind power project.
Mr. Mooney believes the biggest reason businesses won’t bite is because of the lack of an enterprise zone and its incentive for tax abatement.
"An Enhanced Enterprise Zone is a big project," said Mr. Mooney. "It’s something we really need. Our county already has the line and the hook to attract new business. This would be the bait."