Another missed opportunity?
Many worry Bombardier will be NASCAR again
Many worry Bombardier will be NASCAR again
JEFFERSON CITY, Mo. — If lawmakers fly by a mega business opportunity on St. Joseph’s doorstep, Northwest Missouri may experience a racing sense of déjà vu.
Proponents of a deal to lure a jet plant to the Kansas City International Airport point to NASCAR in Wyandotte County, Kan., as a painful reminder of what could have been.
“(Legislators) didn’t step up to the plate to get the race track. I don’t think they saw the real potential in it,” said Marci Bennett, director of the St. Joseph Convention & Visitors Bureau. “... They will have missed another opportunity. One of the biggest challenges we face is getting our legislators to think outside the box.”
The Missouri Legislature is considering a tax incentive package it would use to convince a Canadian company to build the aerospace plant in exchange for tax credits.
Sen. Charlie Shields, R-St. Joseph, is pushing legislation that could offer Bombardier up to $40 million in tax credits a year for the next 22 years. The credits are tied to the amount of jobs the company brings — the company pledged 2,200 at an average wage of $55,000 a year — and the plan includes a controversial repayment mechanism.
Flash back about a decade when another Buchanan County senator went after a major development near the airport, but his story didn’t have a happy ending.
One of the biggest missed opportunities for this area came in the mid-1990s, when NASCAR attempted to build its racing complex in Platte County.
Sidney Johnson, then senator of Buchanan County and part of Platte County,
sponsored legislation authorizing tax breaks to lure NASCAR to his district, but St. Louis lawmakers opposed the measure. The track, along with Nebraska Furniture Mart and Cabela’s, went to Kansas.
The state of Kansas put together a package involving STAR tax revenue bonds to seal the deal, explained Caleb Asher, spokesman for the Kansas Department of Commerce. The program isn’t tied to jobs, rather it’s aimed at large destination attractions that commit to a capital investment within a certain geographical district. Sales tax revenue generated from the district then pays off the bonds.
Mr. Asher told the News-Press that NASCAR is ahead of schedule, as the project has proved so lucrative.
The area has blossomed with development, touting a minor league baseball stadium, the Legends outdoor shopping venue and a likely casino. A new water park and retail development is set for east of Interstate 435, as well.
“People didn’t have any faith Wyandotte County, Kan., could put something together,” said Mr. Shields, who was a state representative at the time.
He said legislators believed that if NASCAR opted for the Sunflower State, Missouri still would reap development benefits with a plethora of new hotels and other amenities along the border.
“Clearly, that didn’t happen,” he said.
Mr. Shields has been quick to remind senators of Missouri’s failure to attract NASCAR in trying to garner votes for Bombardier, so far to no avail.
The Senate has tackled the plan multiple times with little progress, as critics challenge the overall lack of details in the legislation. Mr. Shields is placing his hopes into a version from the House of Representatives that senators passed out of committee last week.
He says he’ll call it up for debate either late this week or early next week.
“It’s not just about Bombardier,” said Spence Jackson, spokesman for the Department of Economic Development.
Mr. Jackson pointed to recent decisions from Toyota and Mitsubishi to open plants in the South.
“We should’ve been in line for that,” Mr. Jackson said, noting that until recently, the state hasn’t had the necessary tools to go after large projects.
He pointed to recent expansion of the Quality Jobs program. The “mega project” concept added to the Enhanced Enterprise Zone program, as outlined in the deal for Bombardier, is a crucial step, he said, but it isn’t exclusive to Bombardier. Other developments could become eligible.
“It sends a message to the entire world and makes us more visible to attract these kinds of projects,” he said.
The St. Joseph Area Chamber of Commerce has fully endorsed the project, predicting that businesses needed to outfit and supply the plant would locate here, in addition to the impact on the St. Joseph work force.
Ms. Bennett said bringing more people to St. Joseph would, in turn, boost tourism and general revenue to the city.
“This would also help close that gap between KCI and St. Joe,” Ms. Bennett said. “Everyone thinks St. Joe is on the Iowa border. People in Overland Park don’t realize we’re closer to KCI than they are. This would help show the K.C. metro area we’re not that far away.”
Alyson E. Raletz can be reached at
alysonraletz@npgco.com.
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Thinking outside the budget is more like it. What legislators want to happen is for this money to be set aside in a fund for Bombardier's corporate welfare, but that puts Missouri at risk. If they open the facility in Montreal instead, all of that money devalues over time, and we lose. There is no safety net for repayment if they don't take the contract. If they don't produce an amazing number of jobs and pay back tax credits with interest, we lose. We're giving away the farm on this one.
Posted by TheShadow on April 28, 2008 at 11:28 a.m. (Suggest removal)Calle, the tax incentives are only given out if Bombardier locates here, so there is no risk of spending the money and losing it if they don't show up. The real gripe here it that as a Missourian I helped fund both the football dome and the baseball stadium in St. Louis, yet the legislators from that area consistently block any funding for this side of the state.
This article is right, we should learn form the NASCAR miss and invest in the future.
Posted by calle on April 28, 2008 at 9:39 p.m. (Suggest removal)I get where you're coming from, but legislators are pushing to set aside the funds in advance, and that means a loss of investment in other things, and dollars devalued over time. Plus, this is the biggest tax credit ever in Missouri, and the terms don't provide enough protection. I'd like to see the plant open in KC too, but I think the risk is really steep. There is a definite risk, given the cuts in important state works like medicaid. I can see the legislature asking for a tax increase (I think there is already talk of that in some instances) and I think a lot of people would be inclined to say yes, let's support these priorities. But if THIS is in the budget, then I think reinstating medicaid for those who were cut on 05 should come first. I think with large-scale developments like this, Missourians by and large should be paying more directly for what benefits them, and just because they did it wrong in the past doesn't mean it should be payback time again at the expense of taxpayers. The real risk is if they DO show up and continually need more and more tax relief. Frankly, I'd like to see those tax credits go back to the people.
Posted by TheShadow on April 29, 2008 at 9:37 a.m. (Suggest removal)I don't really disagree with what you are saying, but this is the type of thing that continually drags our area down. We can't be afraid to invest in good paying jobs. Why do you think Wyandotte County is now flush with tax funds? Because they had the foresite to invest in Nascar and the shops that surround it. Would have been nice to have that on the Missouri side!
Beside all of that, the representaion from the east side of the state needs to reciprocate for all of the state funds that have gone thier way.
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