Ajinomoto Windsor Foods Seeks Additional Bond Money From The City Of Joplin
The City of Joplin approves a request to file for additional bonds from a food manufacturing plant currently under construction.
Ajinomoto Windsor Foods received $44 million dollars in bonds from the city last year to begin construction, but they say there’s been some changes, and now need an additional $10 million dollars.
But city officials say these bonds, aren’t like traditional bonds.
Ajinomoto Windsor Foods came to the council to ask for ‘permission’ to draw up formal paperwork for the additional bonds.
The city, approved that request — and in about 60 days, the formal paperwork will be presented to council for approval.
But, when you think of “bonds” it’s typically money the city has and gives to a project, but…not in this case.
Rob O’Brian, President of the Joplin Area Chamber of Commerce explains “There is not a direct investment from the city nor is there any backing from the city for the bonds.”
These bonds are issued by a state law, commonly referred to as “The Chapter 100” law.
O’Brian says “There’s no financial obligation to the city or the tax payers, this is simply a mechanism under Missouri law to allow for tax abatement’s, so the actual investment in the project that the city, the schools, the other tax entities are making is really on deferring the taxes for a period of time.”
These bonds instead are bought at an auction, by the company requesting them.
Windsor has already purchased the $44 million and is planning to purchase the additional $10 million.
As for the reasons behind the extra bonds…according to O’Brian “One, there are some new food safety regulations coming down the line that they decided they would rather address now.”
the other — the company was planning on closing a plant in Piedmont, Missouri, and bringing equipment from there, to here, but, the plant sold at the last minute, and the majority of that equipment is staying there.
“So they are putting more money into new equipment, but it’s also state of the art equipment, so it really is equipment that will be in place for the long haul.”
Company officials tell us they’re looking to begin operations by the middle of next month.