EquipmentShare's tax incentive application in the hands of Boone County Commission

Charles Dunlap, Columbia Daily Tribune
·3 min read
EquipmentShare President Willy Schlacks participates Thursday in a presentation to the Boone County Commission related to his company's Chapter 100 tax incentive application.
EquipmentShare President Willy Schlacks participates Thursday in a presentation to the Boone County Commission related to his company's Chapter 100 tax incentive application.

EquipmentShare's Chapter 100 tax incentive application is now in the hands of the Boone County Commission.

The commission held a first reading Thursday afternoon, with a second reading and possible vote for approval planned during its meeting at 7 p.m. Tuesday.

Previously: Taxing entities advance EquipmentShare's incentive request to Boone County Commission

If approved, county attorney CJ Dykhouse and county bond counsel GilmoreBell then will work through a performance agreement with EquipmentShare on goals the company must maintain to ensure its 75% tax abatement over the next 10 years.

Based on comments Thursday by commission members, passage is likely.

The abatement would lead EquipmentShare to invest in a new $20 million technology development center and a $35 million flagship corporate office as part of its total $120 million investment in Columbia.

The corporate office could have moved away from Columbia, said Willy Schlacks, EquipmentShare president and chief product officer, about conversations over the past few years with other communities, company leaders and investors.

More: EquipmentShare's tax incentive application moves closer to review by Boone County Commission

"We started considering these options, and that is where we really dug in our heels and said, 'Let us make this work,'" Schlacks said about keeping the company based here. "... I want to show (those investors) what it really means to have those Midwest values, the work ethic and integrity, because it is inside the people (in our company)."

How Chapter 100 works

From left, Boone County Commission members Justin Aldred, Dan Atwill and Janet Thompson listen Thursday to Willy Schlacks (not pictured), president of EquipmentShare, as he participates in a presentation about his company's Chapter 100 tax incentive application.
From left, Boone County Commission members Justin Aldred, Dan Atwill and Janet Thompson listen Thursday to Willy Schlacks (not pictured), president of EquipmentShare, as he participates in a presentation about his company's Chapter 100 tax incentive application.

The abatement would apply to any new property constructed or purchased by EquipmentShare. Preexisting property is not part of the abatement.

Taxing districts in Boone County provided feedback to the county commission on what should be included in the performance agreement when it approved the incentive application last week.

More: Columbia's EquipmentShare proposes $120 million expansion

A claw-back provision is expected to be part of the agreement, so the county entities can receive more tax revenue if EquipmentShare doesn't reach the requirements.

EquipmentShare was allowed to request 75% abatement due to the company's planned investment of more than $100 million.

A percentage of new jobs must pay at above the county's average wage, said Kathleen Bruegenhemke with Regional Economic Development Inc.'s Chapter 100 incentive subcommittee. This committee has aided EquipmentShare through the application process.

More: Where the process stands for EquipmentShare's tax break request with Boone County

The impact on taxing entities over 10 years is $2.4 million, with the largest impacts on Columbia Public Schools, $2 million; the City of Columbia, $143,328; and the Daniel Boone Regional Library District, $107,425.

While taxing districts will see a reduction in received property taxes, the county still will benefit during this 10-year period as EquipmentShare grows and hires employees, Bruegenhemke said. The larger workforce and the employees' local shopping will increase the sales tax base, she said.

Application timeline

An artist's rendering of the proposed new EquipmentShare headquarters.
An artist's rendering of the proposed new EquipmentShare headquarters.

EquipmentShare first introduced its Chapter 100 application late last month to the county's taxing district review panel at REDI.

Following the initial review panel, EquipmentShare went directly to the individual taxing districts for approval through those organizations. This included CPS, Boone County Family Services, Daniel Boone Regional Library and the city.

More: School board introduces policy that would limit public comment during meetings

All entities voted in favor of the application, which led to last week's taxing review panel meeting giving the recommendation of final approval to the county.

The city and CPS want a clearer picture of how many of the new jobs will be local and how many will be remote/virtual. Family services wants a percentage of new hires to be individuals with developmental disabilities. These elements likely will be part of performance agreement negotiations the county conducts with EquipmentShare.

Charles Dunlap covers local government, community stories and other general subjects for the Tribune. You can reach him at cdunlap@columbiatribune.com or @CD_CDT on Twitter. Please consider subscribing to support vital local journalism.

This article originally appeared on Columbia Daily Tribune: EquipmentShare's incentive in the hands of Boone County Commission