Mamtek troubles making Missouri lawmakers wary
Thursday, September 22, 2011
JEFFERSON CITY, Mo. (AP) — The financial problems of a company that promised to open an artificial sweetener factory in Moberly are making some lawmakers wary of approving new business incentives during a special session.
Missouri officials had said Mamtek U.S. Inc. could eventually employ 600 people at the plant. Moberly issued $39 million of bonds for the facility, and the state pledged $17 million of aid. But Mamtek missed its first bond payment, leaving the city on the hook for it.
House Majority Leader Tim Jones says Mamtek has “become a real hot point” for lawmakers who are hesitant to give greater discretion over tax incentives to the Department of Economic Development.
Senate President Pro Tem Rob Mayer says Mamtek “dampens the enthusiasm” to create new incentives for a St. Louis air cargo hub.
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