Council signals support for Clarios expansion project, with tax abatement plan
ST. JOSEPH, Mo. (News-Press NOW) - In line with the city's strategic plan to invest in residents and attract young professionals and families, the St. Joseph City Council will consider a resolution Monday night at City Hall to issue Taxable Industrial Development Revenue Bonds to finance a project for the benefit of Clarios, LLC, which intends to invest $400 million during a major expansion of its St. Joseph facilities.
According to city documents, the city's Chapter 100 bonds would provide the company with a sales tax exemption on construction-related materials and nonmanufacturing equipment, along with property tax abatements tied to the expansion project and manufacturing equipment installed as part of the project at its two St. Joseph locations: 4722 Pear Street and 2330 SW Lower Lake Road, estimated to be a $400 million investment.
Clarios would receive real and personal property tax abatements for 10 years, set at 70% for years one through five and 60% for years six through 10.
The company agreed to meet required benchmarks for existing and new employees, as well as minimum average annual wages for both new hires and the overall workforce during the abatement period.
Clarios plans to create at least 123 new full-time jobs within three years while maintaining average annual wages of $76,647 for new employees and $72,800 across the workforce. The company currently employs 936 workers.
The resolution would not finalize the deal but would authorize staff and attorneys to prepare legal documents, signaling the city's intent to move forward. A later ordinance would formally approve the bonds and tax incentives.
In a separate Taxable Industrial Development bond issue, the council also will consider tax incentives for Gene Field Preservation for a major renovation project at Gene Field Apartments. The estimated cost for renovating the 107-unit complex is about $10.6 million.
The apartments receive federal low-income housing tax credits used to help provide affordable housing. The city would use Chapter 100 bonds to provide a sales tax exemption on construction materials and a temporary reduction in property taxes tied only to the increased property value created by the renovations, not the apartment complex's current value.
The owner would continue paying full taxes on the property's existing value.
The proposed property tax abatements would be structured as follows:
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Years 1-10: 75% abatement on the added property value
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Years 11-12: 50% abatement
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Years 13-15: 25% abatement
The city is attaching several conditions to the incentives. If the developer fails to maintain the property, pay bills and taxes on time or properly complete renovations, the city could revoke the tax breaks. The agreement also requires free internet access in community spaces and propertywide Wi-Fi infrastructure for residents.
The city would authorize up to $15 million in bonds in case construction costs increase.
In other business, the council plans to hold a public hearing on rezoning several properties from C-3 commercial to R-2 two-family residential zoning along Alabama Street, Grant Street, West Indiana Avenue, Kentucky Street, Lake Avenue, Massachusetts Street, Michigan Avenue, Ohio Street and Virginia Street.
Council members also will consider an ordinance authorizing GFT Infrastructure to design the Krug Park bridge project at a cost of $72,442.87 as an amendment to the Capital Project Fund.
According to city documents, the current Krug Park renovation project did not include the bridge over the pedestrian tunnel leading to the overflow parking lot, which is considered an essential part of the park loop. The ordinance would allow the city to move quickly into construction once funding and approvals are secured to avoid delays in reopening the park.
Also on the agenda is an ordinance authorizing a Transportation Planning Consolidated Grant Agreement with the Missouri Highways & Transportation Commission totaling $255,457 to assist Metropolitan Planning Organization transportation planning activities within the St. Joseph urbanized area.
The grant is funded through Federal Transit Administration and Federal Highway Administration planning programs. The city would contribute $58,887 in matching local funds. An additional $19,947 designated for bicycle and pedestrian planning would be fully covered by the grant. The total transportation planning program amounts to $314,334 and would fund planning efforts rather than construction projects.
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The council agenda also includes approval of an agreement with Gina's Cafe & Catering, LLC, to provide food and beverage services at Civic Arena.
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Council members also will consider an ordinance to donate two retired patrol vehicles to the Missouri Western State University Regional Law Enforcement Academy.
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In addition, the council is expected to consider a resolution authorizing an amendment to the Capital Project Fund with GFT Infrastructure Inc. for Phase 2 design work on the Cook Road project in the amount of $722,568.61. City documents state Cook Road has needed upgrades for several years. A TIF district previously was approved to help fund roadway improvements. The project's initial phase focused on preliminary plans for the section of Cook Road between the Interstate 29 bridge and Riverside Road. Phase 2 would include preparing right-of-way plans, tract maps and descriptions, final roadway plans and assistance with the bidding and construction process.
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