City Council recap: City plans to issue $14 million in revenue bonds to secure Schutz expansion project

ST. JOSEPH, Mo. (News-Press NOW) -- City Councilmembers signaled their support tonight for an incentive package to help secure a large $31 million industrial development project in St. Joseph.

A resolution of intent was approved this evening by City Councilmembers to issue $14 million in taxable industrial development revenue bonds for company Schutz Container Systems, which is investing $31 million in St. Joseph to expand its existing manufacturing facility at 5500 Providence Hill Drive.

Schutz, a German-based company, is a global leader in container manufacturing, particularly intermediate bulk containers, which are used to transport and store everything from chemicals and hazardous goods to more sensitive products like food.

The resolution approved Monday does not officially issue the bonds, but rather states the city’s intent to issue the bonds at a later date to encourage the company to proceed with the proposed project. The company’s expansion includes development of a new facility to support a manufacturing line for industrial packaging, the first among its 14 locations in North America.

"One of the things about this is we worked as a group. The community, the Chamber. As we put it together, it had to be good for the community. It had to work in a way that helps," St. Joseph Mayor John Josendale said.

The resolution approved by City Council specifically directs City staff, St. Joseph Economic Development Partnership staff and Gilmore & Bell, P.C. to pursue bonds to support Schutz's purchase and installation of fully-electric equipment, machinery and personal property for the new facility.

Bonds are being offered solely as a way to provide personal property tax abatement on the project. Tax abatement will be offered for a total of 10 years:

• In years one through four, the company will receive 75% personal property tax abatement on the project equipment.
• In years five through ten, the company will receive 50% personal property tax abatement on the project.

As a condition of issuing the bonds, Schutz will be required to create and maintain a certain number of new jobs with an average annual wage of at least $45,252, excluding benefits.

At a later date, it is expected that the City Council will pass a separate Ordinance to issue the Chapter 100 bonds. The process of luring the company even included the help of Missouri Gov. Mike Kehoe, who visited with company officials in Germany as part of the site selection process prior to the announcement.

The agreement marks the latest example of St. Joseph utilizing revenue bonds as a tool to incentive large scale capital investment and spur job creation in the city.

The city issued $18.5 million in Chapter 100 revenue bonds in March for Nortian Foodtech, which is investing $22 million in St. Joseph with a state-of-the-art 160,000-square-foot manufacturing facility at 2202 Alabama Street.

The company will use technology to convert by-products from the meat industry into high-quality food-grade protein. The company projects to hire at least 138 people by the five year of operations.

Approximately $60 million in industrial revenue bonds were also issued in April to support the development of two new hotels and a new conference center on Frederick Avenue.

The massive development project would include 249 hotel rooms and a host of amenities, including fitness centers, lobby bars, restaurants, pools and roughly 12,640-square-feet of conference center and ballroom space.

City Council OKs high-profile funding agreements to upgrade 139th Airlift Wing, Rosecrans Airport

The future of local aviation took a sizable step forward on Monday as councilmembers signed off on two measures to support development of a new aircraft maintenance facility and $17 million air traffic control tower.

Councilmembers officially approved a funding agreement with the Highways and Transportation Commission for a $7.5 million grant to design the 139th Airlift Wing aircraft maintenance facility at Rosecrans Memorial Airport.

Grant funds will allow the city and the Missouri Air National Guard to facilitate design a state-of-the-art facility capable of maintaining the coveted C-130J model aircraft.

The addition of a new and expanded maintenance hangar serves as a major checkmark for securing the long-sought C-130J, the U.S. Air Force’s primary transport aircraft and a major upgrade from C-130Hs currently at Rosecrans. The plan is to design a new maintenance facility to be large enough to hold two C-130J models.

Also on Monday, two additional agreements worth $727,954 were approved with the FAA to provide design, engineering, and installation of telecommunications systems and equipment for the new air traffic control tower under construction at Rosecrans Memorial Airport, a $17 million project to replace the old tower.

Funds will be paid to the FAA for telecommunications systems and FAA-owned air traffic equipment for use in the new ATCT. Costs are fully covered by existing state grant funds already budgeted for this project, so no new local funds are required.

The new tower is a critical piece of Rosecrans' ongoing modernization, a huge undertaking with $35 million invested in the tower, as well as a new terminal building and runway opened in 2024 and 2025.

Plan to relocate 'Trash Mountain' at Sanitary Landfill receives green light

Just under $2 million will be spent by the city to move a massive pile of waste built-up as a result of previous cell construction delays and increased tonnage at the St. Joseph Sanitary Landfill.

City Councilmembers authorized a $1.9 million contract with MCON, LLC on Monday to relocate "trash mountain" to the new Cell 8 opened this year at the landfill. 

"Trash mountain," a buildup of roughly 400,000 to 500,000 cubic yards of trash, is the result of a yearslong capacity situation that nearly hit a breaking point last November, when a combination of cell construction delays and a huge increase in yearly waste put the landfill on the brink of a soft closure.

The city will be required to move roughly 84,000 of the 400,000 to 500,000 cubic yards of waste in trash mountain. For comparison, Cell 8 is designed to hold 1,669,000 cubic yards of waste.

Heritage Park Softball Complex to see field improvements

The riverfront softball fields of St. Joseph are next in line for sizable improvements. 

Monday’s City Council meeting saw the approval of a $42,472 contract with Mid-America Golf & Landscape to restore fields one through five at the Bill McKinney Softball Complex at Heritage Park. 

The goal of the project is to restore the infields to a proper grade and therefore promote drainage to increase playability and achieve a safe playing surface. 

The project will include infield laser grading of all five fields followed by reconstruction through the addition of red shale and lime dust foundation. Field amenities will be purchased by the Parks & Recreation Department prior to the project for application. 

The desired completion date is prior to the next playing season at the complex. Since opening in 2003, the popular venue has hosted ten national tournaments, several regional and state tournaments, as well as numerous sponsored contests and tournaments locally. 

SJFD, Doniphan County fire district forge new partnership

The St. Joseph Fire Department and the Doniphan County Fire Protection District #4 in Elwood, Kansas, have entered into a partnership that now allows the two to provide emergency services in the other's jurisdiction for a five-year period.

Services include requests for assistance, directions to incident scenes and other mutual aid opportunities. 

SJFD has roughly 128 personnel on staff, a strong figure that includes 51 firefighters, 33 drivers, 33 captains, three fire Inspectors, three Battalion Chiefs and five Fire Administration positions.

Council signs off on equipment purchases for various departments

Councilmembers approved a handful of contracts to purchase new equipment for the city’s Sewer Maintenance Division, Fire Department, Street Maintenance Division and IT Department during Monday’s meeting. 

Some of the notable purchases include $75,000 to buy a new Chevrolet Silverado truck for the Fire Department and $53,000 to replace three snowplows.   

Purchases approved by City Council: 

• $122,524 for new truck mounted equipment and accessories on two international HV507 cab and chassis from American Equipment Co. for the Sewer Maintenance Division.

• $92,410 in marijuana tax funds to purchase new truck mounted equipment and accessories on an international HV507 cab and chassis from American Equipment Co. to be used by the Streets Maintenance Division. 

• $53,301 to purchase three snowplow replacements from American Equipment Co. for the Streets Maintenance Division

• $161,000 to purchase hardware from C1 for the PC Refresh Initiative for the City of St. Joseph. 

• $74,855.09 to purchase a Chevrolet Silverado 2500 truck for the Fire Department from Randy Reed Chevrolet with emergency equipment setup costs. 

Other measures approved by City Council

$38,930 was approved Monday as part of a contract with Delta Innovative Services to replace the bathhouse roof at the St. Joseph Aquatic Center at 402 S. Noyes Blvd. 

The roof of the bathhouse at the St. Joseph Aquatic Park needs replacement due to age and exposure to the elements. 

As part of the approved scope of work, Delta Roofing will provide all necessary labor, equipment, and materials to complete the removal of the existing shingle roof down to the wood substrate. Upon removal, a new shingle roof assembly shall be installed. 

The new roofing system will include roofing felt, drip edge, valley metal, pipe flashings, and a ridge cap. New seamless gutters and downspouts will be installed to match the existing buildings.