Nail plant gets tax abatement in Poplar Bluff

POPLAR BLUFF, Mo. -- A tax abatement deal for Mid-Continent Nail is being credited with helping Poplar Bluff win a nearly $5 million expansion over an out-of-state city.

A measure passed by the Poplar Bluff City Council last week grants the nail manufacturer a tax exemption for 90 percent of personal property taxes assessed against the expansion over the next 10 years.

"Things like adding 91 jobs and new business, unfortunately, they just don't happen without some type of incentive," said Steve Halter, president of the Greater Poplar Bluff Area Chamber of Commerce. "If it wasn't for this incentive, they would have chosen to add those jobs somewhere else."

The new jobs represent an additional $2.4 million annual payroll, Halter said.

The tax abatement begins Jan. 1, city council documents state. It applies only to the expansion project.

A new line will be installed in the company's original 118,000-square-foot plant in the industrial park, on the north side of Revere Plastics.

Mid Continent's main nail manufacturing facility is in the former Rowe Furniture building.

Equipment had been ordered by December, and work was set to begin as soon as possible. A public relations director for the company was not available for comment Tuesday.

The facility employed 400 people as of December. Staff has increased by about 100 since the company was bought in 2012 by Deacero USA Inc., of Monterrey, Mexico.

The city also has agreed to issue taxable industrial revenue bonds to finance the expansion. These will be bought by the company and secured with the revenue generated by this project, the agreement states. Mid Continent is responsible for the cost of issuing the bonds.

City manager Heath Kaplan said in February the company's investment, job creation and involvement in community events were considered before recommending the tax abatement.

Mid Continent, established in 1987, has been part of the community for a long time and had quite an effect on the local economy, Kaplan added.

"It's a good investment. It's a wise investment," he said.

Butler County will seek a $1.8 million community development block grant from the state to construct an Industrial Park Road overpass above the Union Pacific Railroad tracks as part of the project. Ozark Foothills Planning Commission is helping the county apply for the grant.

Ozark Foothills also is helping the county seek $600,000 in funding for the overpass project from the U.S. Department of Commerce and $130,500 from Union Pacific Railroad.

Three Rivers College is expected to help provide training to the new employees, Halter said, possibly through a state grant as well.