New jobs and more funding for education could result from Regional Economic Development Inc.'s plans to create an enhanced enterprise zone in Columbia. Business developments and expansions within the zone would benefit from a 50 percent property tax abatement for the next 10 years. The proposed enterprise zone boundaries are highlighted in the map below. ¦ Nicole Thompson

Regional Economic Development Inc. is pushing forward with the idea of developing an enhanced enterprise zone that could create jobs while generating property tax revenue for Columbia schools and other taxing entities.

Boone County has lost a total of 1,920 manufacturing jobs since 2004, according to a REDI report delivered to the Columbia City Council on Tuesday. The enhanced enterprise zone would provide tax incentives intended to spark expansion of existing businesses or manufacturing companies and the creation of new small businesses.

Businesses in the zone would be eligible for a 50 percent abatement of property taxes over 10 years on new or expanded buildings and infrastructure. Personal property such as furniture, equipment and vehicles would be ineligible for the tax abatement, Bernie Andrews, executive vice president of REDI, said.

“Once the zone is designated, new building must take place for the company to receive the tax credits,” Andrews said. “If an existing manufacturing company (within the zone) adds on a 25,000-square-foot expansion, then only the expansion can be taxed at 50 percent.”

Although manufacturers in the enhanced enterprise zone would get tax breaks if they expand, tax revenue to the community still would rise, Andrews said.

REDI Chairman Dave Griggs cited an example during his presentation to the council. If a business along Route B, which would be included in the enterprise zone, were to make $10 million worth of investments in real property and $5 million worth of investments in personal property, the net increase in property taxes collected over 10 years would be $1.3 million. Of that, about $1 million would go to Columbia Public Schools.

Heightened competition between branch plants is another benefit of the enhanced enterprise zone program, Andrews said.

“It’s a pretty good tool for manufacturing companies,” he said. “With the program, branch companies that come to Columbia can compete against other branches across the state for cost.”

REDI officials hope the program will entice businesses such as Kraft Foods, Dana Corp. and Quaker Oats to expand their operations.

To be eligible for benefits, a business must create a minimum of two jobs. Ultimately, however, the local Enhanced Enterprise Zone Advisory Board will determine business eligibility.

REDI is recommending the following people be appointed to the advisory board:

• Todd Culley of Boone Electric Cooperative or Randy Morrow of Boone Hospital Center
• Carrie Gartner of the Downtown Community Improvement District
• Louis Gatewood of the Columbia Housing Authority
• Mariel Liggett of Williams Keepers
• Jonathan Sessions of the Columbia Board of Education
• John Strotbeck of Kraft Foods
• Representatives of other taxing entities, which might include the city of Columbia, Boone County, the Daniel Boone Regional Library and the Boone County Fire Protection District.

Solidifying the selection of the seven members of the advisory board is one of the next steps in the completion of the enhanced enterprise zone designation application to the Missouri Department of Economic Development. The exact zone area still needs to be established, and eligible business clusters have yet to be determined.

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“Missouri is committed to driving economic growth and keeping the tax burden low for our business owners,” said Christopher Chung, CEO of the Missouri Partnership. “The Governor and Missouri General Assembly deserve all the credit for proactively laying the groundwork for economic success through targeted investments and performance-based incentives that encourage new business growth and job creation.”

The report examined the effective tax rate, after statutory tax credits, in Arkansas and its seven neighboring states – Kansas, Oklahoma, Texas, Louisiana, Mississippi, Tennessee, and Missouri. Specific taxes evaluated in the report included corporate income taxes, franchise taxes, sales and use taxes on business purchases, and local property taxes. The types of companies considered in the report included corporate headquarters, research and development, manufacturing, food processing, renewable energy, and business support services.

National recognition for its favorable tax climate is nothing new to the state of Missouri.
• Missouri was recently cited by the U.S. Chamber of Commerce as the seventh best state for taxes and regulation.
• In 2011, CNBC ranked Missouri as the third best state in the nation for cost of doing business.
• Missouri came in at number 8 in the Pollina Corporate Top 10 Pro-Business States for 2011, an annual study considered the most comprehensive in the economic development industry.

The Ernst & Young report noted that Missouri averaged 27 percent in tax credits, the highest of the states studied and a major indicator in the state’s top ranking.

“Our robust range of industries – automotive, renewable energy, R & D, information technology, business services, and advanced manufacturing – is a testament to Missouri’s pro-business philosophy,” Chung noted. “Our plan is to further enhance Missouri’s competitive business climate in the coming year.”

In 2011, Missouri became home to several companies, including Aero-Tech Laboratory Equipment Company, Data Systems International Inc., Card Compliant, Doyle Equipment Manufacturing, Applebee’s International, Olympic Steel, Inc., and Flex-N-Gate. Additionally, Ford and GM recently announced major expansions at the Claycomo and Wentzville, Mo. plants, respectively, for a total investment of $1.5 billion.

The Missouri Plant Science Center, along with Soy Labs and Reliv International, Inc., announced its new soy powder, LunaRich, on Tuesday.

LunaRich contains the soy peptide lunasin at levels five to 10 times higher than standard soybeans. Lunasin was discovered in 1996 and has been shown to help lower cholesterol and manage heart health, according to Soy Labs’ lunasin website.

A new soybean enhanced with the LunaRich soy powder will be released on Feb. 17 at the Reliv National Conference, said Mark Murphy, director of content management at Reliv, a company that sells and researches soybeans.

No side effects have been found to occur with the consumption of LunaRich, except for in people who are allergic to soybeans, said Ryan Schmidt, executive director of the Missouri Plant Science Center and president of Soy Labs.

LunaRich is safe for daily use, Schmidt said.

LunaRich is the first lunasin innovation from the joint research group, which Schmidt said is built on more than 10 years of research and millions of dollars in investments in lunasin technology.

After screening and testing soybeans, Schmidt said the biggest challenge for the creation of LunaRich was maintaining a high level of lunasin in the beans during the manufacturing process because lunasin levels depend on the soil, seed and environment.

Kristin Bilyeu, a research molecular biologist with the USDA Agriculture Research Service, said soybeans have been an important food supply for humans and livestock.

Soybeans are the main source of vegetable oil and also provide balanced protein in nutritious food products such as tofu and soymilk.

Bilyeu said soybeans are a dependable financial source for farmers because of their high productivity, broad adaptation and large consumption.

According to statistics from soystats.com, in 2010, 35 percent of the world’s soybeans were produced in the United States. Missouri ranked seventh in production of soybeans in 2010.

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For the second year in a row, Columbia has been named as one of the “100 Best Communities for Young People.”

The 2011 award, sponsored by America’s Promise Alliance and a financial planning company, ING, recognizes communities that work to reduce high school dropout rates and provide “service and support to their youth,” according to a release by the Youth Community Coalition.

According to the release, communities were judged based on their utilization of the alliance’s “Five Promises,” community work with youth and their families and efforts to reduce the dropout rate and prepare students for college and the workplace.

More than 300 communities applied.

The Youth Community Coalition will hold an event Wednesday at 4:30 p.m. to honor Columbia’s recognition.

The celebration will be held in the City Council Chambers at 701 E. Broadway.

Mayor Bob McDavid, Columbia Public Schools Superintendent Chris Belcher and a representative from America’s Promise Alliance are scheduled to speak, and area youth will help present the award, according to the release.

The release cited several organizations as contributing to the recognition by partnering to invest in local youth.

The Minority Men’s Network was recognized for its early reading program. According to a previous Missourian article, the organization addresses equality issues among minorities.

As part of the reading program, members of the network read to children at the Nora Stewart Early Learning Center.

Steve Calloway, the organization’s president, said exposing children to books at a young age is part of the organization’s aim to close the achievement gap.

Calloway said being seen as contributing to Columbia’s recognition raises the bar for the network.

“When you hear from another source outside yourself that our guys are making a difference it’s very gratifying,” he said.

Another program, Partners in Education, was cited in the release. It seeks to help schools through partnerships with local businesses to provide tutoring, classroom presentations and career exploration, according to the organization’s website.

The Rainbow House helps Columbia’s youth by providing multiple programs for youth in crisis. According to the Rainbow House website, the organization provides services, such as its Children’s Emergency Shelter, Regional Child Advocacy Center and Homeless Youth Program, to address issues of child abuse and neglect.

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*CORRECTION: Sen. Claire McCaskill voted to allow debate on cap-and-trade legislation, but she opposed the legislation as it stood; a statement from a source in earlier version of this story suggested otherwise. 

The promise of biomass weighed against the cost of alternative energy sources was the key theme of the day when U.S. Sen. Claire McCaskill, D-Mo., visited the Columbia Municipal Power Plant on Monday.

McCaskill met with representatives from MU, MFA Oil, the Columbia Water and Light Department, the Missouri Energy Initiative, Missouri University of Science and Technology, the Missouri Public Utility Alliance and Boone Electric Cooperative.

The delegates discussed plans to invest in renewable energy sources and create jobs in the energy sector. The meeting was part of McCaskill’s Hometown Energy Tour, during which she has spent several days traveling around the state gathering official opinions. McCaskill is also seeking re-election to the Senate in November.

“The main focus of her tour this time around has been listening,” McCaskill spokesman John LaBombard said.

Speakers explained the steps their institutions or companies are taking and the progress they’re making in research, but their excitement about boosting efficiency and promoting alternative energy sources was balanced against concerns about cost.

Water and Light Director Tad Johnsen said that because it takes time and money to make changes, it’s important when talking about new energy strategies to ask: “What benefit does it actually bring?”

Johnsen noted that the Columbia Municipal Power Plant does mix some biomass with coal as an extra source of fuel and that Missouri is a good state for producing biomass. Still, he said, those who would like to see a full-scale conversion to the alternative fuel have to consider the startup costs.

Many of the speakers said biomass is also becoming important in their research and fuel production.

LaBombard said McCaskill recognizes the high cost of switching to alternative energy sources, and therefore she does “not expect to see a full transition to renewable resources in her lifetime.”

Still, LaBombard said, McCaskill is trying to find ways to invest in renewable methods to someday achieve this full transition.

McCaskill said Columbia’s method of using both coal and biomass is a good step toward that goal, partly because Missouri has farmland that is good for producing biomass, such as switchgrass, but not fit for growing food.

Sarah Steelman, a candidate for the Republican nomination for U.S. Senate, agrees that biomass mixed with coal is a good option, but she also worries about costs.

“This is not an either-or question between coal or biomass,” Steelman said in an email. “I support the development of all domestic energy alternatives to ensure that Missouri families and business have access to low cost, reliable energy. What I don’t support is the practice of propping up certain alternatives such as ethanol through government subsidies that end up costing taxpayers more instead of benefiting them.”*

Todd Akin, another Republican candidate, indicates on his website that he also supports the “all of the above” approach described by Steelman. And a third Republican candidate, John Brunner, said on his website that he worries that new energy regulations that McCaskill supports could cause energy bills to rise dramatically.

Neither Akin nor Brunner were available for comment.

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Missouri is home to two universities on Kiplinger’s “100 Best Values in Public Colleges” list, the St. Louis Business Journal reports. Truman State University in Kirksville landed at No. 23 on the list, and the University of Missouri-Columbia grabbed the 79th spot. No Kansas schools made the list. The rankings appear in Kiplinger’s February issue. Kiplinger said it combines academics and affordability to produce its list. The University of North Carolina-Chapel Hill clinched the No. 1 spot.

Good economic news for the City of Fulton. Thursday the Dollar General Distribution Center announced it will add 50 new positions. They will begin taking applications immediately.

The company says warehouse jobs start at $11.60 an hour and include benefits like health insurance and paid vacation time. They are eligible for pay increases up to $13.10 at one year of service.

Human resources manager Diane Spieker says the expansion comes as Dollar General expands nationwide. In a news release, the company says it’s one the the nation’s fastest growing retailers. The 50 positions in Fulton are in addition to 6,000 jobs previously announced by Dollar General in 2011.　

The Fulton center currently employs 615 people who travel from across the Mid-Missouri region.

“Dollar General is happy to expand our family of employees here in Fulton,” said Steve Gibson, manager of Dollar General’s Fulton distribution center. “This is a great place to work and grow. Anyone looking for an exciting opportunity with a fast-paced company should consider applying for a position at our distribution center. ”

You can apply in-person at the distribution center office located on 1900 Cardinal Drive. Applications are available Monday – Friday, 8 a.m. – 5 p.m.

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• ED101: Economic Development Finance – March 19-23, 2012

• ED201: Business Credit Analysis – September/October 2012

• ED300: The Art of Deal Structuring – February/March 2013

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