Keeping operating costs low is key to a business’s success. Fortunately, Kirksville offers some of the lowest operative costs in the country. Land, construction, taxes, utilities and labor are affordable here. Plus, the city offers incentives to reduce your cost even more.
For example, Kirksville is a member of the Missouri Enterprise Zone Association, offers tax increment financing (TIF) opportunities, and is a Federal Empowerment Zone Champion Community. Unlike metropolitan areas, as a rural community Kirksville has an abundance of green grass sites that could be developed into premium industrial properties. One-third of Kirksville is zoned commercial/industrial. There is no doubt that you will find an affordable, quality site for your business.
Here are some of the more frequently used incentives that the City of Kirksville utilizes on a regular basis:
The Revolving Loan Fund is administered by the City. The funds originated with the Missouri Department of Economic Development (MoDED), and because of this, when the City wishes to use these funds to loan for an economic development project the State must be notified and approve loaning the funds. Additionally, the Kirksville Industrial Development Authority (KIDA) must be notified and approve loaning the funds. Generally, if the parameters set by Council policy are met, the loan is ultimately forgiven. All loans are made at an interest rate 1/3 of prime. There are a limited amount of monies available at this time.
If you are interested in applying for a Revolving Loan, please contact Ashley W. Young, Assistant City Manager.
The Small Business Facade program is an additional loan program administered by the City. This program is funded at $15,000 annually, with the goal that the City will loan up to two loans per year at $7,500 each for the restoration or renovation of building facades, which may include tuck-pointing and windows. These monies are in the aforementioned Revolving Loan Fund, so an application still requires KIDA and MoDED notification and approval. Additionally, the recording fees are charged to the recipient recording. Again, these loans are made at an interest rate 1/3 of prime.
Facade Assistance Program
The Demolition / Rehabilitation Program is an additional loan program administered by the City. This program is funded at $25,000 annually, with $10,000 designated for demolition, and $15,000 designated for rehabilitation, with the goal that the City will loan up to two loans per year at $7,500 each for the rehabilitation of an existing structure. Again, these loans are made at an interest rate 1/3 of prime.
Housing Rehabilitation Program
Establishing a Tax Increment Financing (TIF) district is a method to use future gains in taxes within that particular district to subsidize current improvements, which are projected to create the conditions for gains above the routine yearly increases which often occur without the improvements. Once a developer is identified, and a base year established, 100% of increases in property tax and 50% of increases in sales taxes are collected by the district to be used to make the aforementioned improvements. While this is necessarily tax revenue that taxing districts, the City included, do not receive, the City typically expects the developer to make Payments In Lieu of Tax (PILOT) in an amount determined as part of the process establishing the TIF district. Any Tax Increment Financing (TIF) district approved within the City limits is administered by the TIF Commission, which is a City commission. Annual reports are due from each TIF district, which the City administers send to the State of Missouri. There are currently two TIF districts within the City: the Downtown TIF, and the South Highway 63 TIF.
TIF State Statute
Tax Increment Financing Commission(TIF) Meeting Information
Chapter 353 Tax Abatement is an incentive that can be utilized to encourage the redevelopment of blighted areas by providing real property tax abatement. Tax abatement is available for a period of 25 years, which begins to run when the Urban Redevelopment Corporation takes title to the property, which must be formed, typically by the developer, as part of Chapter 353. During the first 10 years, the property is not subject to real property taxes except in the amount of real property taxes assessed on the land, exclusive of improvements, during the year before the Urban Redevelopment Corporation purchased the property. During the next 15 years, the real property may be assessed up to 50% of its true value. The Urban Redevelopment Corporation is required to submit annual reports to the City. There are currently two Chapter 353 developments in the City.
Missouri Department of Economic Development
Chapter 100 Industrial Development Bonds allow cities or counties to purchase or construct certain types of projects with bond proceeds and to lease or sell the project to a company until the amount of the proceeds is paid back to the City. These bonds may be issued either as a "revenue" bond or a general obligation bond. The purchase, construction, extension, and improvement of warehouses, distribution facilities, and industrial plants, including the real estate either within or without the limits of such municipalities, buildings, fixtures, and machinery must be located wholly within the limits of the City. With Council approval, it may be possible to exempt most of the real and / or personal property tax of new real estate improvements and new machinery financed by a Chapter 100 bond. The City must own the assets financed by the bonds and an eligible company would lease the assets from the City for the term of the bonds. The amount and term of abatement depends on a negotiation with the City. In effect, the property tax is exempt by virtue of public ownership, however, the City may require that a portion of the payments otherwise due will be paid in the form of a Payment In Lieu of Taxes (PILOT).
Chapter 100 Industrial Development Bonds
A Community Improvement District (CID) is organized for the purpose of financing improvement projects within the district through collecting and spending an increase in the sales tax within the district. Unlike a TIF, the CID increases sales taxes within the district for the purpose of making the improvements outlined during the process of establishing the district. Unlike a TIF, a CID is a separate legal entity as well, although it must be created via ordinance by its governing municipality. A CID Board of Directors submits an annual report to the State of Missouri as well as the other taxing districts which encompass the CID. There are currently two CIDs within the City.
CID State Statute
A Transportation Development District (TDD) is organized for the purpose of financing transportation improvement projects within the district through collecting and spending an increase in the sales tax within the district. Like a CID, the TDD increases sales taxes within the district for the purpose of making the improvements outlined during the process of establishing the district. Like a CID, the TDD is a separate legal entity as well, although it must be created via ordinance by its governing municipality. A TDD Board of Directors submits an annual report to the State of Missouri as well as the other taxing districts which encompass the TDD.
Missouri Department of Transportation
The Missouri Clean Energy District, of which Kirksville is a part, operates as a political subdivision following the enactment of the PACE Act of Missouri during the 2010 legislative session. As a member of the District, the City can help property owners finance energy retrofits by allowing an owner to place an additional tax assessment on his or her property. Property owners who invest in energy efficiency (EE) measures and renewable energy (RE) systems repay these assessments over a period up to 20 years via additional annual payments on their property tax bills. Communities that provide access to PACE funding for their property owners can address two major roadblocks to clean energy growth: a lack of capital and a hesitancy to make energy efficiency improvements.
Missouri’s clean Energy District (PACE)
Don’t see what you need above? A handful of the programs already mentioned fall under the Missouri Works program, but they are not the only Missouri Works programs that the City is willing to participate in. Visit the Missouri Works website to see a full list of the programs they offer, because our Economic Development Department is open-minded and appreciates the opportunity to explore all the options necessary to ensure your success!