Grandview has an aggressive portfolio of economic development incentive programs. The programs are testament to Grandview’s appreciation of its light manufacturing, distributing, wholesaling, and small business sectors—and of the City’s intent to assist and facilitate prospective and existing businesses. Grandview is limited to using incentives permitted by State statute for fourth class cities.
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• Tax Increment Financing
The City has used the Tax Increment Financing (TIF) program thirteen times within its approximate fifteen square miles of territory since the mid-90’s. TIF projects basically help developers cover infrastructure costs, such as streets and utilities.
• Chapter 100 Industrial Revenue Bonds
Chapter 100 Industrial Revenue Bonds enable the City to partner with private companies by investing in major purchases of new equipment. Industrial Machinery.jpeg The companies then lease/buy the equipment back from the City over a period of time. The Chapter 100 program provides up-front sales tax relief for the purchases, with the payments for the purchased equipment spread over several years.
• Chapter 353 Tax Abatement
The City has established Chapter 353 redevelopment corporations to assist companies in complex acquisitions for redevelopment projects. The tool can be used to engage the City’s powers of assisting redevelopment activities, and it also can provide significant tax abatements for qualified projects.
• Neighborhood Improvement Districts
Neighborhood Improvement Districts, Community Improvement Projects, and Transportation Development Districts provide for the generation of extra taxes on new or redevelopment projects. They are conceptually similar, in that new tax revenues generated by the projects can be applied back to project or improvement costs.
• Community Improvement Projects
• Transportation Development Districts
• Sales Tax Reimbursement Agreements
Sales Tax Reimbursement agreements represent a funding mechanism allowed by Missouri law that may be used to achieve public benefit through funding for infrastructure projects. Under such agreements, municipalities have the ability to annually appropriate the increase in sales taxes created by new private capital investment to offset a portion of their project investment costs. The sales tax increments must be used for public purposes, primarily through the funding of infrastructure improvements.
• Enhanced Enterprise Zone Program
Grandview’s newest development tool is its Enhanced Enterprise Zone (EEZ) program that was established in 2007. Grandview established three of the EEZones that cover approximately 50% of the land in the City. Grandview's EEZones
Most business types, with the exception of retail, bars, restaurants, and gaming establishments, can qualify for the EEZ program by making a minimum investment of $100,000 investment and hiring two new employees. Certain service businesses must demonstrate that more than 50% of their revenues come from non-Missouri sources.
EEZone benefits include income tax credits calculated by the Missouri Department of Economic Development, (DED) based on the number and types of jobs, benefits offered to employees, and availability of the state’s tax credits “pool.” The tax credits are awarded for five years. Growing companies can apply for an additional five year of the credit if they meet state criteria.
The City provides a minimum of 50% property tax abatement for ten years on the improved portions of facilities and project sites. In addition, Grandview is open to discussing higher levels of tax abatements for projects with investment amount of $20,000,000, or ones that result in 150 new jobs.