Use of tax abatements to attract business or encourage growth of existing businesses has drawn criticism as unnecessary or unfair taxing practices. Four candidates seeking two seats on the City Council in the April 5 election said abatements can benefit the community, but they need to be used on a case-by-case basis.
On Feb. 7, the Jefferson City Council voted 9-1 to abate 75 percent of the property taxes on project improvements for an initial 10-year period and 50 percent for the following 15 years for the entertainment center Strikers, which is located at the former site of Capitol Bowl.
Officials with the project argued it will "enhance the quality of life" for residents and keep money in the community.
However, it wasn't supported by everyone in the community.
Tax abatements are typically given to attract businesses or enable growth in hopes of increasing economic development in a city. However, Strikers is almost completed, with anticipated opening date of March 1.
"Tax abatement is supposed to attract industry, isn't it?" resident Ed Williams said. "This is already here. I drive by it virtually every day. So, this is what we already have, and they shouldn't be eligible. If they are going to be successful, they ought to pay their fair share of property taxes."
Ward 2 Councilman Mike Lester said he supports the project, but voted against giving it tax abatement because he didn't believe it was appropriate.
The city has also approved tax abatements in the past.
For instance, in 2020 the council approved tax abatements for the Jefferson City Medical Group to build a new outpatient facility. For the project, JCMG approached the city to request a tax incentive -- 75 percent tax abatement for the first five years and 25 percent for the next five years.
The four candidates for the Jefferson City Council -- Jack Deeken and Jacob Robinett, who are seeking the Ward 1 seat, and incumbent Erin Wiseman and Bob Scrivner, who are seeking the Ward 3 seat -- shared their opinions on how the city should use tax abatements going forward. Their answers appear in the order by which they are on the ballot:
Jack Deeken
If it is an area that is not being fixed, go for it if they have a viable business plan and it's good for the area. Nothing was going to be built. I mean, sure he was already started with it, but good golly. We have to do what we can to keep our local businesses here.
Jacob Robinett
I think it is a tool that can be used for the good of the community. I think each one of these cases whenever it comes before the City Council needs to be looked at as an individual project and not what we have done in the past. It is something that is setting Jeff City up for the future. It's not a short-term outlook on what can we get in this facility or on this property. It's what's something that can be built and will last and have a future impact on Jeff City.
Erin Wiseman
We have used tax abatements for dilapidated buildings that are being utilized for new businesses that, in my opinion, wouldn't have otherwise built there or when the money just doesn't make sense. ... What's really important about tax abatements is the cost in demolishing these properties. If we think about the Truman Hotel, the cost of demolishing that property, I don't actually have a number, but it's probably astronomical. ... We have to judiciously analyze, every time somebody asks for that. Would somebody build, would somebody go in and take care of it, and make it profitable business without it?
Bob Scrivner
I've seen it used successfully, and I've seen it when I thought it wasn't as successful. One of the biggest successes ... was the year we recruited Command Web and we gave them a pretty significant incentive. It started out small, but they were able to negotiate it. That's been a great investment for the city; they paid that off early, they've expanded a couple times; added equipment. That was a great example.
On the recently approved tax abatement for an entertainment center, Scrivner said, "I have nothing at all against him. But I thought that was a misapplication of the TIF. I thought that was a development that was going to happen anyway."