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Council moves Legacy Fasteners bond request to June 1 vote after presentation on jobs and tax abatement
Summary
City bond counsel and company representatives outlined a Chapter 100 deal that would give Legacy Fasteners LLC a 75% real-property tax abatement for 20 years in exchange for local investment and job commitments; council voted to place the ordinance on the June 1 voting agenda.
Mark Graham, an attorney with Gilmore & Bell serving as bond counsel, told the Poplar Bluff City Council that a Chapter 100 industrial revenue bond transaction would let Legacy Fasteners LLC receive a partial property-tax abatement while the company brings jobs to the city. "The industrial revenue bonds are intended to facilitate partial real property tax abatement for Legacy Fasteners," Graham said, and he described the standard structure in which the city takes title during the abatement period and leases the project back to the company.
Company representatives said the investment and jobs commitments were substantial. "The company bought this building for $2,100,000," Jeff Libla, the company's president and CEO, said. Libla said Legacy Fasteners has invested in the industrial park for years and expects to contribute "probably a little over $5,000,000 in wages to the economy" this year. Chris Pratt, the company's chief financial officer, said the firm’s payroll grew from about $1.7 million in its first year to an expected near-$5 million this year.
Graham said the proposed deal would provide a 75% abatement on real property taxes for 20 years; personal property taxes would not be abated. He added the company would file annual reports so the city could verify job creation and wage commitments. When asked whether the title transfer is a formality to accomplish the tax abatement, Graham described it as the standard Chapter 100 mechanism: "the company will file an annual report, showing the number of jobs and the wages of the employees so that the city can verify that it's met its obligations."
After questions from council about the structure and estimated tax impacts, a council member moved to place the ordinance on the voting session agenda for June 1. The motion was seconded and carried by voice vote.
The council did not vote on the tax abatement itself at this meeting; the June 1 voting session will include final action on the ordinance.
