Springfield: July 2008 Archives

Companies eyeing a move to the Springfield area may soon have a significant incentive to build here.

The Springfield City Council will consider giving a 25 percent property tax break for 10 years to businesses that meet LEED energy and water conservation standards.

If approved, it would be the first property tax abatement of its kind in Missouri, according to Matt Schaefer, senior planner with the city of Springfield.

At tonight's meeting, the City Council will have its first reading of the proposal and hear public comments.

The tax break would be available in the Springfield Enhanced Enterprise Zone, an area that includes most of Springfield, Battlefield and some areas in Greene County adjacent to Springfield.

Because the enterprise zone extends beyond Springfield, Greene County commissioners and the Battlefield City Council also will consider approving the tax abatement plan. All three groups must approve the plan for it to go into effect.

"The Enhanced Enterprise Zone is an economic development tool that Springfield uses to help recruit new business and to create new jobs," Schaefer said.

"We may be able to attract additional business with this new property tax abatement."

How it works

Businesses that meet certain job creation requirements in the Enhanced Enterprise Zone can already get a 50 percent property tax abatement for 10 years.

They could earn an additional 25 percent tax abatement if their buildings -- or expansions of existing buildings -- can achieve a silver level or higher certification from the Leadership in Energy and Environmental Design program.

LEED is sponsored by the U.S. Green Building Council, which encourages sustainable green building practices.

Buildings can achieve four levels of certification based on points assigned for energy and water conservation elements. The categories are certified, silver, gold and platinum.

Schaefer said building to a high LEED standard may cost a bit more initially.

"But over the long term your operating costs are a lot lower because you're saving on energy and water usage," he said.

City Councilman Dan Chiles said natural gas prices are likely to soar this winter, so it makes sense for businesses to cut their energy costs through LEED building practices.

"It is time for us to start thinking about this," Chiles said. "We're trying to attract other businesses to this area and this is one way to do it."

He called the proposed tax abatement for LEED certification "quite a carrot" for companies considering a move to Springfield.

"We're not sacrificing anything to do this," he said. "This is attracting new business that otherwise may not have come here."

Ryan Mooney, vice president of business development at the Springfield Area Chamber of Commerce, said a company has already inquired about any green-building incentives the city might offer if it chose to move here.

"We're hoping that in two or three weeks we can talk more about it," Mooney said.