Governor Blunt Announces Economic Development Initiative to Support 30 New Jobs in DREAM Community St. Joseph

FROM THE OFFICE OF THE GOVERNOR

June 24, 2008

Contact: Jessica Robinson, 573-751-0290


ST. JOSEPH  Gov. Matt Blunt today announced the approval of $280,829 in state tax credits for Silgan Containers, St. Joseph. The tax credits, approved by the Missouri Department of Economic Development (DED), will be utilized over a five-year period under the Enhanced Enterprise Zone (EEZ) program for the expansion of a facility located at 2115 SW Lower Lake Road, St. Joseph.

"Working together we are helping create jobs and economic growth in St. Joseph," Gov. Blunt said. "The Enhanced Enterprise Zone program will help further support this DREAM communitys economic development efforts and give them a competitive edge in attracting new business opportunities. Initiatives like this one have helped Missourians create tens of thousands of new jobs since January 2005."

DED has reserved the tax credits for a five-year period based on Silgan Containers projections for the creation of 30 new jobs at an average wage of $42,640 and new investment of $5,800,000. The business operations at the facility will be a manufacturing facility.

The Enhanced Enterprise Zone program was implemented in 2004. Enhanced enterprise zones are specified geographic areas designated by local governments and certified by the Department of Economic Development. Zone designation is based on certain demographic criteria, the potential to create sustainable jobs in a targeted industry and a demonstrated impact on local cluster development.

Gov. Blunt launched the DREAM to help small and mid-sized Missouri communities navigate through the various downtown revitalization, business development and residential resources available through state government to further help those communities with downtown revitalization and job creation efforts. The Missouri Department of Economic Development (DED) is the lead agency in the effort and works closely with the Missouri Housing Development Commission and the Missouri Development Finance Board to provide close assistance to the selected communities.

Since Gov. Blunt announced the first 10 DREAM communities in 2006, they have received more than $225 million in total investment for housing, construction and renovation projects and infrastructure improvements. Public investment in the communities to date totals $38 million, less than a fourth of the total private investments. Public funding secured through the governors initiative has created an unprecedented $189 million in private investment to benefit the 10 communities.

Aurora, Cape Girardeau, Caruthersville, Chillicothe, Clinton, Excelsior Springs, Hannibal, Hermann, Kennett, Kirksville, Maryville, Mexico, Neosho, Poplar Bluff, St. Joseph, Sedalia, Sikeston, Trenton, Washington, and West Plains are DREAM communities.

Gov. Blunt recently signed legislation to support responsible economic development in Missouri and ensure the state remains competitive in the global marketplace. The legislation provides tax credits for companies that implement mega projects in Missouri.

This month the governor signed legislation which contained several major provisions to build on strong economic growth and development in Missouri. The legislation increases the annual cap on the governors successful Quality Jobs Tax Credit Program from $40 million to $60 million and among other things increases the amount of tax credits the Missouri Department of Economic Development may authorize for the Enhanced Enterprise Zone Program from $14 million to $24 million.

Economic development legislation passed this year builds on the unparalleled reforms enacted under Gov. Blunts leadership. Comprehensive litigation reform enacted under Gov. Blunts leadership drove the state to a ten spot jump in a leading national watch groups ranking. The states jump in rank is indicative of the many success stories resulting from Gov. Blunts pro-family, pro-jobs initiatives.

In addition, Gov. Blunts workers compensation reform measures enacted in 2005 are helping to decrease workers compensation rates in the state. The law restored fairness to Missouris workers compensation system by protecting rights of injured workers without threatening Missouri jobs.

Gov. Blunt has successfully restored order to a broken state budget without raising taxes. He inherited a devastated state economy in January 2005 that was $1.1 billion in the red and had lost 34,000 jobs in the previous four years. Overall, Gov. Blunts pro-jobs, pro-growth initiatives have helped Missourians create more than 80,000 new jobs since January 2005.