Economic Development Bill Passes in Final Hours of 2009 Session

JEFFERSON CITY - "Against All Odds" would be a perfect theme song playing in the heads of economic development professionals in the wee hours of Friday morning as the Senate seemed no closer to passing an economic development bill than in February when the bill was originally passed by the House and sent to the Senate.

But disappointment turned to surprise as the Senate, in a rare move, gathered all members of both parties for a caucus meeting before the regular session on the last day of the session. Senators emerged from the caucus meeting with an apparent agreement, went immediately to the floor, adopted the agreed upon amendments, and passed House Bill 191!

The bill did not contain all economic development proposals that had been proposed and adopted by the House. Nor did it contain the caps, limitations, or appropriations language that many in the economic development community feared would stifle the usefulness of our economic development portfolio. The Blue Springs public private partnership was not included, nor were several issues that were critical to expansion projects that had been planned by some private companies. But for a session that looked like it would end without any economic development legislation passing at all, the bill is viewed by many as at least a tempered victory.

The actual language has not yet been posted on the House website, but I have a copy and will try to scan it if it is not available Monday morning. HERE IS A SUMMARY OF THE ITEMS THAT WERE CONTAINED IN THE FINAL VERSION OF THE BILL. Please note the final version of the actual language will be titled "Truly Agreed and Finally Passed" and it is different than the "Senate Committee Substitute" that is currently available.

Associated Industries of Missouri, an MEDC member, was proud to have supported all the economic development proposals this year and we are happy we were able to redeem at least the projects that were included in the final version.

Ray McCarty
President
Associated Industries of Missouri

Eminent Domain Proposition Fails To Obtain Signatures

August 5, 2008 - The Office of Secretary of State reports the supporters of the two eminent domain initiative petitions detailed below failed to obtain enough valid signatures and they will not appear on the ballot in November.

From a press release issued by the Secretary of State's office:

"A Constitutional Amendment to Article I relating to eminent domain had an insufficient number of valid signatures in one of the six required Congressional Districts.

A Constitutional Amendment to Article VI relating to eminent domain had an insufficient number of valid signatures in one of the six required Congressional Districts."

DED Unveils Enhanced Enterprise Zone Map Tool

July 2008 - The Missouri Department of Economic Development has developed county maps that will aid in the designation of enhanced enterprise zones. These maps were the result of discussions between the MEDC and DED during the most recent legislative session, and we are very pleased with the outcome.

The county maps may be found on the Department's website by clicking here or the map at right.

The maps will streamline the cumbersome procedure previously required to establish an enhanced enterprise zone as much of the guesswork in developing an area that qualifies as an EEZ will be eliminated or reduced. Using the county maps, economic developers may see which census block groups would qualify, and which would not, allowing for a more accurate area designation. Of course, the final area must still be coordinated with DED, but the local economic developer now has a great tool for starting the discussion and looking at potentially eligible areas.

Kudos to all the folks at the Missouri Department of Economic Development that made this possible, and in particular to Sallie Hemenway, Ben Jones and John Mehner who originally helped develop the idea.

Eminent Domain Restrictions May Appear on Ballot in November 2008

Two pending initiative petitions may thwart the ability of local governments, utilities, and railroads to acquire property by eminent domain. In fact, zoning and property restrictions of all types could be affected by these constitutional amendments, if they are approved by voters.

The group behind these efforts, Missouri Citizens for Property Rights, bypassed the General Assembly by using a provision that allows citizens to place constitutional amendments on the ballot without approval of the legislature or Governor. The group appears to have successfully obtained enough signatures to place the issue on the ballot; however those signatures must be verified for validity and to be sure the required number of signatures has been obtained in each congressional district. Initiative petitions amending the constitution, like these measures, require the signature of 8% of legal voters in six of Missouri's nine congressional districts.

Following is more information regarding these proposals.

Click here for an analysis prepared by Tom Cunningham for the Missouri Municipal League.

The first proposal's official ballot title, the language that will be seen by voters when they decide the issue, is as follows:

"OFFICIAL BALLOT TITLE AS CERTIFIED BY
SECRETARY OF STATE

Shall the Missouri Constitution be amended to restrict the use of eminent domain by:

• Allowing only government entities to use eminent domain;
• Prohibiting its use for private purposes, with certain exceptions for utilities;
• Requiring that any taking of property be necessary for a public use and that landowners receive just compensation;
• Requiring that the intended public use be declared at the time of the taking and permitting the original owners to repurchase the property if it is not so used within five years or if the property is offered for sale within 20 years?

The total cost or savings to state or local governmental entities cannot be known. Some state governmental entities estimate no related costs, however, certain state governmental entities may have unknown or indirect costs that may exceed $100,000. Estimated costs to local governmental entities will vary, but could be significant."

The actual initiative petition language of "Proposition 1" as described in the document may be found here.

The second proposal's official ballot title, as certified by the Secretary of State, is as follows:

"OFFICIAL BALLOT TITLE AS CERTIFIED BY
SECRETARY OF STATE

Shall the Missouri Constitution be amended to change the power of the General Assembly and constitutionally chartered cities or counties to:

• Prohibit the use of eminent domain to acquire and resell property found to be blighted, substandard or unsanitary for the purpose of clearance, redevelopment or rehabilitation; and
• Allow them to require owners of property found to be a public nuisance to abate or clean up the nuisance and, if the property owner fails to do so in a reasonable time, allow the local government to pay for the abatement and impose a lien to recover the cost?

The total cost or savings to state or local governmental entities cannot be known. Some state governmental entities estimate no related costs, however, certain state governmental entities may have unknown or indirect costs. Estimated costs to local governmental entities will vary, but could be significant."

The actual initiative petition language of "Proposition 2" as described in the document may be found here.

Governor Blunt Signs Omnibus Economic Development Bill

June 11, 2008 - Gov. Matt Blunt today signed legislation that will benefit Missouri workers and employers by enhancing entrepreneurship and economic growth opportunities in Missouri. The governor signed the legislation at Quik 'n Tasty in Belton, highlighting the success of his Quality Jobs initiative.

The sponsor of the legislation, Rep. David Pearce (R-121, Warrensburg), is pictured above with MEDC Immediate Past President Lisa Franklin (also of Aquila), and Craig Arnold of the Cass County Corporation of Economic Development. The picture below shows Rep. Pearce with Tracy Brantner, Executive Director of the Johnson County Economic Development Corporation.

"As governor, I have worked to cultivate economic growth and make Missouri a state of opportunity by enacting pro-jobs, pro-growth initiatives. By changing our states business climate, we have encouraged Missouri entrepreneurs, small businesses, and large employers to create new jobs in our state for Missouri workers," Gov. Blunt said. "With the dedication of Missouri's working men and women, together we are letting businesses know that Missouri is open for business. Our changes are working and Missouri's families are benefiting from sustained economic growth at the state level."

"This bill expands and strengthens Governor Blunt's Quality Jobs Act and proves once again that Missouri is a state that does much more than just talk about job creation" Rep. David Pearce said. "The bipartisan effort to pass this bill gives Missouri employers the incentives to expand and create good paying, long term jobs. I applaud Governor Blunt for creating the Quality Jobs Act and for signing this bill."

MEDC thanks Governor Blunt and the Department of Economic Development for giving our economic developers across the state the tools they need to continue to make Missouri a competitor for quality jobs.

Governor Signed Mega Project Legislation

On May 22, Governor Blunt signed the mega project legislation. HB 2393 would provide the Department of Economic Development (DED) with tools they need to try to land an aircraft manufacturer deal for the Kansas City Airport area. Discussions are ongoing between DED and Canadian-based Bombardier regarding such a facility.

The mega projects legislation allows tax incentives to be issued to a company that must be repaid, the net effect of which is a low interest or no interest loan, if the company provides certain high levels of employment at high salaries and makes a certain infrastructure investment in the facility. The incentives would be repaid based on a repayment schedule finally determined by DED.

You may find additional details, including the actual text of the bill, here.

Economic Development Bill Details

Here are links to the economic development bills that were Truly Agreed to and Finally Passed by the Missouri Legislature. As of yesterday, both of these bills have now been signed by the House Speaker and President of the Senate and have been delivered to the Governor. The Governor has until July 14, 2008, to either sign or veto the bills. If the Governor does not veto the bills by that date, they will automatically become law.

These links provide summaries of the bills and links to the full text of the final language:

House Bill 2058, sponsored by Representative David Pearce

Senate Bill 718, sponsored by Senator Harry Kennedy