Tuesday, February 1, 2005
Contact: Spence Jackson, (573)751-1378
Blunt Expresses Concern over Possible TIF Commitments Made by Holden Administration
JEFFERSON CITY - Missouri Governor Matt Blunt expressed concern today over possible financial commitments made to developers and local communities by the Holden administration that exceed the limit set by law.
Former directors of the department of economic development apparently made Tax Increment Financing (TIF) commitments to at least two communities, Kansas City and Independence that will exceed the state's annual TIF cap of $15 million.
Blunt has directed Director of Economic Development Greg Steinhoff to conduct a thorough investigation to determine how much state money was pledged to these projects and possibly others by former directors and whether or not the state has the resources to meet these commitments.
Employees in the department brought the commitments to the attention of acting director of Economic Development a few weeks ago. Much of the background information on the department's interactions with the leaders of the projects was relayed to Blunt's administration through the same employees who discussed the projects with the former directors of economic development and through letters the two sent the project managers regarding TIF issues.
H & R Block is expanding its Kansas City headquarters and Independence is seeking funds to help construct a Bass Pro Shop Outdoor retail store. It is unclear at this time exactly how much money and what funding sources have been committed by the former economic development directors to the leaders of these projects.