Legislators hope bills spur interest in Chrysler site
Suburban Journals
January 31, 2011
By Kevin Carbery
Local and state legislators say they are trying to spread the welcome mat for businesses to set up shop at the old Chrysler plant site and its surrounding area in Fenton.
State Sen. Eric Schmitt, R-Glendale, and state Rep. Mike Leara, R-St. Louis County, introduced legislation Thursday morning that would ease requirements for businesses to obtain state tax credits from existing programs if the measures gain approval in the Legislature.
Both bills would relax requirements to gain state tax credits for business expansion projects moving to the Chrysler plant site and surrounding properties within a one-mile radius through Oct. 31, 2014.
Schmitt and Leara joined St. Louis County Executive Charlie Dooley, Fenton Mayor Dennis Hancock and Doug Rasmussen of the St. Louis County Economic Council Thursday afternoon to discuss the legislative proposals at a press conference at Fenton City Hall.
"I think this is an important step in bringing jobs back to this region," Hancock said. "We're sending a powerful message that state and local politicians are working together on this. It's the only way we're going to be successful."
Capstone, the restructuring firm representing several creditors involved in Chrysler's bancruptcy, is attempting to sell the property.
Chrysler closed the site's South Plant in October 2008 and its North Plant in July 2009. The South Plant is in the processed of being torn down, Capstone has not announced its plans for the North Assembly Plant.
At its peak in the early 1990s, between 10,000 and 11,000 people worked at the Fenton Chrysler site, according to United Auto Workers Local 110.
Leara's bill would ease the requirements to get tax credits in an Enhanced Enterprise Zone at the site and surrounding area. Within an EEZ, business incentives are available to companies as they invest and create jobs.
Scmitt's bill would relax the requirements to obtain tax credits through the Missouri Quality Jobs program at the site and surrounding area.
Dooley said it's better to lower the Missouri Quality Jobs program requirement for a business to create jobs at 80 percent of the state average wage than to keep the requirement as is and not have the new jobs that could be created.
Leara said he is optimistic about his bill because it targets a specific area and has an expiration date attached to it.
"It will not expose the state to millions of dollars of tax credits," he said. "And it does not expose the state to a long-term commitment. It has a sunset."
Schmitt's bill also targets a specific area and has an expiration date.
