Troubled Sungevity KC office received only a fraction of promised tax benefits

Sungevity, which last week laid off more than two-thirds of its Kansas City staff, received only a fraction of the $11.8 million in potential tax breaks that were offered to attract the company here.

The solar panel marketing company opened a sales office in downtown Kansas City in early 2015.

The Missouri Works program, which provides performance-based incentives to companies that create jobs in the state, had approved more than $11.8 million in potential tax breaks, provided Sungevity hire at least 595 workers.

State economic development officials said the company has been issued $119,717.79, based on its employment to date. Kansas City workers who were let go said they believed employment in the Kansas City office topped out at about 150, and only about 30 employees were left after the layoffs.

The Missouri Works program is designed to provide withholdings or tax credits to help approved businesses expand their facilities or create jobs.

Meanwhile, former workers told The Star that they expected the California-based company to file for bankruptcy. Company officials haven’t responded to requests for information.

Sungevity opened the Kansas City office at 1100 Main St. in early 2015, heralded by economic development officials as a major win for downtown. The company said then that it intended to spend about $730,000 on tenant improvements on two floors of the office tower.

Former employees said the office never grew beyond one floor and they didn’t see evidence that the improvements were made.

Several workers who were let go said they were investigating possible legal action because their final paychecks didn’t include overtime and commission pay due them. They also said no severance pay was provided, but employees have no legal right to severance benefits.

This story was originally published March 13, 2017 at 12:15 PM with the headline "Troubled Sungevity KC office received only a fraction of promised tax benefits."