The Jackson Mayor and Board of Aldermen, meeting online April 20 via Zoom at www.jacksonmo.org/view, approved the authorization of $3 million in taxable industrial revenue bonds to finance the construction of a new office building for K-Coe Isom in Jackson.
Triple Diamond Investments will build the new facility at 2861 E. Main Street.
Chapter 100 of the Missouri Constitution gives Jackson the authority to issue industrial development revenue bonds to finance this project. These revenue bonds do not require voter approval and are payable solely from revenues received from a lease or other disposition of the project.
K-Coe Isom will make payments sufficient to pay the principal and interest on the bonds as they become due. Thus, the City of Jackson acts as a conduit for the financing but is not financially responsible.
K-Coe Isom is the nation’s leading food and agriculture consulting and accounting firm. It has 22 offices across the United States, including one in Jackson.
The Project consists of approximately 1.85 acres of land and an approximately 10,489-square-foot office building. The Project is expected to be completed in July 2021 and will lead to 40 or more new jobs.
The City agreed to give K-Coe Isom 50 percent property tax abatement for 10 years. (The City will own the property and lease it to Triple Diamond, who will sublease it to K-Coe Isom until the bonds are paid off.)
The 2019 assessed valuation of the undeveloped property to be included in this project was just $180.
Triple Diamond estimates the assessed valuation of the property after it’s developed will be approximately $944,000. Although there is a 50 percent property tax abatement, during the first 10 years, taxes will be paid on 50 percent of $944,000 instead of 100 percent of $180, resulting in a net increase in property tax collection. The tax abatement was one incentive that led K-Coe Isom to build here.
(After 10 years, when the bonds are paid off, K-Coe Isom will start to pay 100 percent of the property taxes).
Another incentive to build here was an agreement that qualified building materials purchased for the construction of the project will be exempt from sales and use tax, saving the developer approximately $47,500.
The Aldermen approved the bond issue 7-0-1, with Alderman Katy Liley abstaining in case there is a conflict of interest later.
• Water system: The Board agreed to a $28,690 change order to Jokerst Inc., of Ste. Genevieve, for its work on the South Old Orchard Road Water System Interconnection Project. The increase was mostly caused by using 10-inch instead of 8-inch diameter pipe and reconfiguring the water line to avoid other utilities.
• Kimbeland Lift Station: The Board of Aldermen approved a $58,900 increase of expenditures to Horner & Shifrin Inc., of St. Louis, for providing additional engineering services under the Kimbeland Lift Station Upgrade and Bypass Project.
In addition, the Board accepted a general warranty deed from Warren Place, L.C., relative to this project.
• Jackson Boulevard Center: The Board approved a minor plat of Jackson Boulevard Center, as submitted by Jackson Boulevard Center, LLC. The nail salon is buying the part of the property that includes its building. Chad Hartle of Jackson Boulevard Center, LLC, will retain the rest of the property, which includes the strip building that has China House Buffet.
There is a shared parking agreement so both properties can utilize all of the parking.
The plat meets all the land subdivision requirements for a minor subdivision, stated Janet Sanders, building and planning manager for the City of Jackson. Both lots have access to parking and both have frontage onto East Jackson Boulevard. “They both have more than the minimum amount of frontage,” she said.
• Roundabout: Alderman Dave Hitt asked if construction of the roundabout at Shawnee Boulevard and East Main Street was on schedule and when it would be completed.
City Engineer Clint Brown said the project is scheduled for completion July 1. “They are on track to finish there, if not a little bit ahead,” he said.
• Upcoming events: Mayor Dwain Hahs informed the Board that Park Day, originally scheduled for April 25, was cancelled because of the coronavirus pandemic, but the City’s e-cycle event is still scheduled for Saturday, June 6. The April 7 municipal election has been rescheduled for Tuesday, June 2.