A half-percent economic development sales tax will appear on the ballot in Trenton on April 2nd.
Scott Sharp, the former executive director of the North Central Missouri Development Alliance and now with the Missouri Department of Economic Development, says the sales tax funds would be directed towards economic development projects to ensure the future prosperity of Trenton. The funds are designated for specific projects.
Sharp highlights that the proposed sales tax aligns with Missouri Statute Chapter 67.1300, which stipulates that funds cannot be utilized for retail development. Furthermore, no more than 25% of the funds can be allocated for administrative services, including staff and faculty costs.
The initiative aims to establish a board comprising at least five members: three appointed by the city, one by the county, and one by the school district.
Sharp elucidates that the board will manage the allocation of the sales tax funds and set a budget, with the city council ultimately approving the expenditure.
He emphasizes that a significant use of the economic development sales tax funds would be to tackle what he perceives as a lack of development and housing in Trenton.
Additionally, the funds could serve as a local match for some grants, a strategy Sharp notes is underutilized by Trenton compared to other communities.
Lauren Dannar, the current Executive Director of the North Central Missouri Development Alliance, believes the funds could support entities like the Trenton Area Chamber of Commerce, Main Street Trenton, and NCMDA, with up to 25% used for operating expenses of these organizations.
Trenton Mayor Jackie Soptic suggests that part of the funds could enhance training for current businesses to upgrade their workforce. She asserts that the economic development sales tax board will review requests to ensure they are an appropriate use of the tax funds.
Currently, Trenton’s sales tax rate stands at 8.35%. If the proposed half-percent economic development sales tax is approved on April 2nd, the total would increase to 8.85%.
It is estimated that the tax could generate approximately $400,000 annually.
The city owns about 80 acres of industrial land north of Trenton, bordered by a shooting range and Rapid Removal Disposal, with the remainder being farmland that generates rental income.
If voters approve the half-percent economic development sales tax, it could finance the development of the industrial space.
The land could be developed for light industry and possibly for North Central Missouri Fair events, highlighting the lack of necessary infrastructure like water and sewer as a significant hurdle.
The cost to extend water and sewer services to the industrial land is estimated between $2.5 million and $3 million. Soptic suggests bonding as a potential strategy to finance this infrastructure development.
The sales tax could also provide incentives for new businesses, with Soptic noting the city’s limited capacity to offer incentives beyond utility rates and structures.
Sharp, now with the Missouri Department of Economic Development, mentions that Main Street Trenton offers a matching façade grant program.
According to the state statute governing the proposal, the economic development sales tax funds cannot be allocated for retail development.
For more information on the sales tax, contact Soptic at 660-359-1434.
