The DNA project and taxpayer incentives
At last week’s press conference, Phil Tate said this was a “very unusual arrangement, unlike any I’ve ever seen” in years of economic development efforts - primarily because Human Identification Technologies, Inc. has asked for almost nothing in local and state incentives in its expansion to Kirksville. Because several of you have asked me exactly what HIT has been promised, here is a detailed breakdown.
State Incentives
HIT-Missouri, LLC has chosen to locate in Kirksville without state incentives.
HIT will be entitled to the Missouri Quality Jobs Program should they decide to apply, which could total in excess of $2 million dollars. This is not an incentive but is a formulary tax rebate based upon their actual job creation and terms thereof. The company has not yet decided whether to apply for those funds.
Local Incentives
There have been no local tax abatements or tax credits granted of any kind, nor any requested.
1) The hangar at Kirksville Regional Airport
HIT anticipates that they will need hangar services at our regional airport. At the request of K-REDI, the City agreed to sell its hangar to K-REDI for $109,356. Once HIT has closed on land or a building, K-REDI plans to give HIT one-half ownership in the hangar.
The City originally purchased and constructed this hangar with the idea that the then-current commercial air carrier would lease the building from the City. This never happened, and the cost to pay off the building has been a burden on the airport budget. Selling the building to K-REDI is a benefit to the City.
2) Other contractual obligations. HIT has requested that details of the contract remain confidential at this time to protect HIT’s competitive interests.
That’s everything, folks. You may be interested to know that K-REDI is financed by a combination of both local and private funding. The City of Kirksville contributes $100,000 to K-REDI each year to assist with its mission of improving economic development to Kirksville.
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admin said:
Additional clarification:
1. The $109,356 will be paid from K-REDI to the city in the form of a check. The check will be drawn upon the general funds of K-REDI. Those general funds consist of annual memberships from private and public institutions in Kirksville of which a portion thereof comes from annual funding from the city.
2. The 50% transfer takes place only upon HIT closing on property adequate for the construction of the proposed DNA laboratory. Upon that transfer, HIT has the right to PURCHASE the remaining 50% interest.
3. The undisclosed contractual terms relate to a completely separate part of this project. It is not related to the hangar in any way. HIT is obligated to pay an annual lease to the city for the city owned ground upon which the hangar sits. The lease price is $1,000 per year which is consistent with other leases at the airport where private hangars sit upon city owned property.
Tim Tucker said:
Great news about Human Identification Technologies. Even better about the minimal incentives involved. Hat’s off to Phil Tate and K-REDI. Many thanks to the City Council and the Mayor.