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Council opens hearing on enhanced enterprise zone application for Preza Hotel project
Summary
The council held a public hearing on an enhanced enterprise zone application for Preza Hotel, LLC; staff said the project’s estimated $4.8 million investment and 15+ employees would likely qualify it for a 60% property tax abatement for 10 years under state rules.
City economic development staff briefed the council on an application under Missouri’s Enhanced Enterprise Zone (EEZ) program for a project by Preza Hotel, LLC.
Staff summarized the EEZ background: Missouri’s program provides property tax abatement for qualifying industry classifications (manufacturing, warehousing, distribution and certain accommodations under NAICS codes). Staff recounted the city’s prior participation and said that a qualifying enhanced-enterprise project requires at least $100,000 in investment and two employees to qualify in general. For this application staff said the developer’s estimated capital investment is about $4.8 million and the project reports more than 15 full-time‑equivalent employees, which places it above the program minimum and under the threshold for an additional five bonus years that would require $5 million.
Staff said the minimum EEZ abatement is 50% for 10 years; given the investment and employment, this project would likely receive a 60% abatement for 10 years. Notices were sent to impacted taxing jurisdictions in Phelps County; staff reported no objections to date. The current enhanced enterprise zone designation for the community has a fixed term and staff noted legislative uncertainty about future renewals, so projects need to be evaluated relative to remaining years of the designation.
Council opened the public hearing, heard no public comment, and read an ordinance to approve an enhanced enterprise zone project and authorize the city to enter an EEZ agreement with Preza Hotel, LLC. Staff said they would bring the ordinance back in two weeks for final action and to include a related agreement specifying job reporting, certification and other program requirements.
