Joplin City Council advances $3.3 million abatement for General Mills' projects

May 10—Tax abatements of more than $3 million over 12 years on $77.3 million in projects at two Joplin manufacturing plants received first-round approval from the Joplin City Council last week.

The council heard updated details of expansions at General Mills' frozen dough plant at 3007 Stephens Blvd., and Heartland Pet Food Manufacturing Co., 8101 E. 32nd St. Heartland is also owned by General Mills.

"It is very rare for a company to have two manufacturing plants in the same town, but that's how much General Mills is committed to the city of Joplin," said Brian Corde, of Atlas Insight consulting firm, who assisted the company with the project.

City Attorney Peter Edwards worked with the company and its representatives on a request for Chapter 100 industrial revenue bonds by the city.

"The total incentive they are asking for amounts to about $3.3 million. It's projected to create 47 new jobs with $13 million in real estate improvements and $50 million in new equipment at the General Mills plant, and another $9 million at the Heartland plant," Edwards said.

"If you break down Chapter 100 in very simple terms, the main incentive they are going to get from this is a property tax abatement both for real estate improvements that they are going to make as well as equipment they are going to buy. In addition, there is a sales- and use-tax exemption for materials used in the real estate improvements," he said.

Corde said the investment at the frozen dough plant will provide for the installation of new technology, including semiautomated processing and packaging, that the company said will improve production and operational efficiencies.

It will allow General Mills to produce more than 1 billion pounds of frozen dough and there will be an additional 360 million pounds of pet food that will be produced at Heartland, Corde said.

He added: "So this is definitely an extremely important plant in the company's network."

Corde also said the company has long been a charitable giver in the community, including $150,000 in grants last year, as well as food donations.

Councilman Ryan Jackson asked about the number of jobs and the average income for the workers to be added. Total jobs after the additions will be 901 (at both plants) and starting wages are close to $20 an hour, he was told. Three salaried jobs for supervisors will be included in the 47 new jobs.

He also asked about the term of the abatements.

David Martin of Gilmore Bell, a consultant on economic development incentives, said the city traditionally has given a higher percentage of abatements than some other cities but for a shorter term. Some cities allow abatements for around 20 years that decrease in percentage over time. The agreement in this case is 12 years for real property and five years for personal property. He said those terms are shorter than in many cities.

Jackson asked how much the abatements would cost the school district in revenue.

Martin said that is estimated at $2.2 million over those 12 years. School districts may submit written comments on whether or not they support the request but the city did not receive an objection, according to the discussion.

"This isn't a removal of tax funds from the tax base. This is based upon new tax revenue that would be collected by the city. Once the tax abatement has ended, the school district will greatly benefit from the increase," Corde said.

The city attorney said that Joplin was only one location General Mills looked at for the expansion and the incentive was given to try to obtain the investment and keep the plant going here.

"We got something another town didn't get," Edwards said. "For long-term policy, if you don't allow that investment, then plants close. If you look at small towns around here, when plants close, towns die," Edwards said.

The council approved the abatement with eight in favor; one council member, Gary Shaw, was absent. A vote on second and third readings will come on the request at the council's next meeting.