There’s an old saying about back room deals, where lawmakers hash out the details of bills in the bowels of the Capitol: It’s “how the sausage is made.”
Well, after some back room, and then public negotiations, CoMo is about to become the site of a whole lot of something like real sausage, as a new meat processing plant was recently approved.
Typically, as long as a new business venture meets zoning and construction codes and follows other applicable laws, we citizens aren’t usually too awfully interested in the details of the owner’s prospects.
But Swift Prepared Foods, out of Chicago, has a planned factory project that will be about 1 1/2 to two times the size of a Walmart Supercenter. The firm also applied for the government’s economic development program known as Chapter 100 bonds — which is basically a multi-year tax discount deal — so it necessarily becomes our business.
So we incentivize big, out-of-town corporations to politick our elected officials to pitch them on how, if a special new deal isn’t cut here, they’ll just hit up another community instead, and boy, will we locals sure lose out.
Does this say that our community isn’t good enough on its face to attract such investments? Our infrastructure and workforce are insufficient? Public services like police and fire protection are either inadequate or at least overpriced compared to current tax rates to fund them?
Are local taxes too high overall? There has been growing concern that our local governments are too dependent on sales taxes overall, and diversifying revenue sources toward property taxes might make sense. Well, if this Swift deal prominently acclaims that targeted property tax discounts create specific new good jobs, will that also mean that raising taxes later will kill jobs?
I recall, years ago, a similar tax discount deal being discussed, and I brought up this troubling tax code fairness issue. An intelligent, relatively free-market oriented business leader seemed to sympathize with my drift but replied that in a world of stifling government taxes and regulations, “this is something we CAN do.” Likewise, Ol’ Ron Paul, the retired Texas congressperson and Libertarian firebrand, said he used to always vote for these deals, as at least they lowered taxes for somebody.
This is the back door world we live in, versus old fashioned, corporate welfare simply requiring the public treasury to cut a physical check to a private company.
A sales pitch notably changes when compared to the usual business calculation, once public officials are added in the mix as decision-making stakeholders.
Like the downtown student apartment proposals of years ago, which talked up new urbanism, infill and bike racks, Swift should be commended for tapping well-informed consultants who clearly knew how to push the right buttons of our local political ethos.
The company advertised being conservation-minded with efficient electricity and water usage. It will embrace pandemic safeguards and share our city’s progressive values. As reported in the Missourian on Feb. 25, Boone County Commissioner Dan Atwill confirmed to Swift’s team they had hit the mark, as “(w)e’re very interested in sustainable jobs and a clean environment, and it sounds like you’re interested in that as well, so our enthusiasm for your participation here is very high.”
After the public school district, which receives the lion’s share of property tax collections, had already given the deal a prompt thumbs up, our County Commission unanimously granted final approval last week for Swift’s special 75% tax discount over the next decade.
Maybe a 100% tax break, in perpetuity, would help more. Maybe no taxes whatsoever, plus just give land away to any (big) businesses that locates here? How desperate are we?
But seriously, this infill project is spot-on with zoning plans and smart growth characteristics. The new factory will certainly stand to be beneficial for workers and the local economy overall and add to the tax base. As they say, 25% of this new something beats 100% of the current vacant lot’s nothing. There is a case for all these efforts.
I wish Swift Prepared Foods, its construction contractors and future employees all the best in their new endeavor. We should be thankful that they, and our involved public officials, saw potential in Swift locating here and adding to our community and economy. The jobs it creates will be meaningful to the workers who enter the building daily: putting food on tables and clothing on backs, giving the means to pay mortgages and save for kids’ college educations.
So let’s look forward to a big ribbon cutting late next year, which will hopefully provide factory tours — however socially distanced at the time — where visitors can also observe how real pastrami and such is made.
March 04, 2021 at 01:00AM
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New meat factory for Columbia approved with back-door pork - Columbia Missourian
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