NORDENIA PAYMENT PASSED TO SCHOOL

JACKSON, Mo. -- Christmas came early to the Nell Holcomb School District in the form of a $65,000 check from a manufacturing plant as part of a tax incentive arrangement with county government.

Nordenia plant executives presented the check to David Fuemmeler, Nell Holcomb superintendent, Thursday at the Cape Girardeau County Commission meeting. The money will go to the school district's fund-raising foundation, which will use it to buy equipment, possibly computers, Fuemmeler said.

It's only half of what the school district would have received from the expansion if the tax break weren't in place, but Fuemmeler was appreciative of the payment.

"Half is a lot better than zero," he said.

The payment to the rural elementary school district north of Cape Girardeau is part of a financial agreement involving expansion of the plant. The plant, which produces packaging materials, is in the northern part of the county at Route J and Highway 177.

Bond sale authorized

The county commission this year authorized the sale of $17 million in industrial revenue bonds for the expansion project. The bonds will finance additional equipment and building improvements, some of which already have been made.

Nordenia will buy the bonds, so the county has no financial liability, officials said.

As part of that arrangement, the company won't be taxed on the improvements for the next 10 years. But the company will make annual payments to the Nell Holcomb School District to partly offset the tax revenue the district otherwise would have received from the plant expansion.

"We wanted to make sure the school district didn't lose out on its tax revenue," said Jeff Perry, Nordenia's chief financial officer.

Perry said: "We think this is good for the county. We think this is good for Nordenia."

Mitch Robinson, who heads up the Cape Girardeau Area Industrial Recruitment Association, helped put together the financial deal. He said tax incentives help spark business expansions.

"It's the tool that is being used more and more across the state," said Robinson.

At the same time, the revenue impact on local school districts must be considered. School districts receive the lion's share of local real-estate and personal-property-tax money. "It is a very difficult line to walk," he said.

117 new jobs

The expansion will create 117 new jobs. Some of those jobs already have been filled, company officials said. The project is expected to be completed in March.

Paul Wiedlin, president of the Nordenia plant, said the tax incentive was crucial to getting the German-based firm to expand the Cape Girardeau County plant.

The plant expansion will boost the tax base for Nell Holcomb School District and the county at the end of 10 years, Wiedlin said. The added jobs also will pump money into the local economy.

"In this case, I think this is good for the entire county," he said.