WITH ANNUAL WAGE ABOUT $63,000
Personal property tax abatement and the use of $40 million in industrial development revenue bonds were approved for a major project in a new development in Platte City. Unanimous approval was given by the Platte City Board of Aldermen at a meeting last week.
The developer of Platte International Commerce Center, the industrial project east of I-29 and north of Hwy. 92, has secured its first tenant: Central Power Systems & Services will occupy a 750,000 square foot building within the development.
The development of the Platte International Commerce Center is a project of Van Trust Real Estate.
Central Power Systems will be a job creator in the Platte City area, bringing 305 jobs to the facility. About 245 of those will be new jobs and about 60 employees will be transferring from a facility that has been operated by Central Power Systems in Riverside, company officials have indicated.
Annual wage for the jobs will be about $63,000. Annual total payroll for the company will be about $15 million, officials say.
“I’m excited for our community,” said Dan Laxson, alderman, after the city had approved the chapter 100 personal property tax abatement at a board of aldermen meeting on Nov. 19.
City officials said the effort to land Central Power Systems was competitive.
Tom Cole, city administrator for Platte City, described it as a “fantastic economic development project.”
The approved tax abatement includes some specific details, such as that the Northland Regional Ambulance District and Central Platte Fire District will receive their fair share of personal property taxes.
The City of Platte City does not levy a personal property tax, so it will not affect city tax revenues.
Central Power Systems has negotiated a series of payments in lieu of taxes (PILOTs) with the Platte County R-3 School District to assure the school receives some of the taxes that it would normally have received.
The school district and Central Power Systems have also come to an agreement on a training program allowing high school students to gain job specific skills in advance of eventual employment with the company, which is a Midwest-based manufacturer of generators that serve industries.
“ No matter the situation, we have solutions for power generation, power distribution, industrial engines, construction and agricultural equipment, custom manufactured projects and on-highway transportation service,” Central Power Systems says on its website.
The utilization of the chapter 100 personal property tax abatement “allows the development to attain its first tenant to fully occupy the first building,” said Cole.
The current value of the personal property (machinery, equipment, fixtures, etc.) is roughly $40 million, Cole said.
“The influx/retention of 305 manufacturing jobs to the area will be beneficial to our housing and retain demand,” Cole said.
The project “will also contribute to other revenue streams within the community,” the city administrator pointed out.
“The project has grown from $30 million (to $40 million) since our initial discussions and an additional notification to taxing jurisdictions has been distributed,” Cole wrote in a report to aldermen.
