report to the general assembly for quarter ending march 31

14
Report to the General Assembly for Quarter Ending March 31, 2018 June 2018

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Page 1: Report to the General Assembly for Quarter Ending March 31

Report to the General Assemblyfor Quarter Ending March 31, 2018

June 2018

Page 2: Report to the General Assembly for Quarter Ending March 31
Page 3: Report to the General Assembly for Quarter Ending March 31

1

The Missouri Works Program was created to facilitate the creation and retention of high quality jobs by targeted business projects. It went into effect on August 28, 2013. The Program includes 6 categories for participating: Zone, Rural, Statewide, Mega 120, Mega 140, and Retention Works. The benefits may include the retaining of state with-holding taxes and/or state tax credits. There are both “statutory” and “discretionary” components to the program (Missouri Works Summary Page 3). Missouri Works is a “performance-based” incentive, such that the benefits are not provided until the actual new or retained payroll is documented at the end of each year of the company’s benefit period. In addition, each company that participates in the pro-gram must execute an agreement with DED to insure compliance, record keeping, and minimum job creation/retention, and in certain instances, minimum new capital investment.

Pursuant to RSMO 620.2020.15., the Department of Economic Development is required to provide on the following each quarter to the General Assembly:

1. A list of all approved and disapproved applicants for each tax credit (Pages 4 - 8);

2. A list of the aggregate amount of new or retained jobs that are directly attributable to the tax credits authorized (Pages 4 - 9);

3. A statement of the aggregate amount of new capital investment directly attributable to the tax credits authorized (Pages 4 - 9);

4. Documentation of the estimated net state fiscal benefit for each authorized project and, to the extent available, the actual benefit realized upon completion of such project or activity. The Net General Revenue Benefit Ratio is reported as the ratio for the project as a whole, with all incentives included (Pages 4 – 9); and

5. The Department’s response time for each request for a proposed benefit award under this program (Page 10).

Page 4: Report to the General Assembly for Quarter Ending March 31

2

Prog

ram

Ty

peM

inim

um

Job

N

umbe

rM

inim

um

Inve

stm

ent

Min

imum

Av

erag

e W

age

Bene

fit

Type

Stat

utor

y Be

nefit

C

alcu

latio

nD

iscr

etio

nary

Ben

efit

Cal

cula

tion

Oth

er n

otes

Zone

W

orks

2$1

00,0

00 w

ithin

2

year

s of

appr

oval

80%

of C

ount

y Av

erag

e W

age

Stat

utor

yRe

tain

100

% o

f Sta

te W

ithho

ldin

g Ta

x of

the

new

jobs

for 5

yea

rs (o

r 6

yrs f

or e

xist

ing

MO

Bus

ines

sN

one

Proj

ect F

acili

ty m

ust b

e lo

cate

d in

an

Enha

nced

En

terp

rise

Zone

Rura

l W

orks

2$1

00,0

00 w

ithin

2

year

s of

appr

oval

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of C

ount

y Av

erag

e W

age

Stat

utor

yRe

tain

100

% o

f Sta

te W

ithho

ldin

g Ta

x of

the

new

jobs

for 5

yea

rs (o

r 6

yrs f

or e

xist

ing

MO

Bus

ines

sN

one

Proj

ect f

acili

ty m

ust

be lo

cate

d in

a “r

ural”

co

unty

, whi

ch w

ould

NO

T in

clude

Boo

ne, B

ucha

nan,

C

lay,

Gre

ene,

Jack

son,

St.

Cha

rles,

and

St. L

ouis

City

an

d C

ount

y.

Stat

ewid

e W

orks

10N

one

90%

of C

ount

y Av

erag

e W

age

Stat

utor

y &

D

iscre

tiona

ry

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pone

nts

Stat

utor

y: R

etai

n 10

0% o

f Sta

te

With

hold

ing

Tax

of th

e ne

w jo

bs

for 5

yea

rs (o

r 6 y

rs fo

r exi

stin

g M

O B

usin

ess.

An

addi

tiona

l ben

efit o

f up

to 6

%

of n

ew p

ayro

ll ea

ch y

r for

5 y

rs (6

yr

s for

an

exist

ing

MO

Bus

ines

s) in

re

fund

able

tax

cred

its (n

ot to

exc

eed

9% o

f new

pay

roll)

.

Meg

a W

orks

120

100

Non

e12

0% o

f C

ount

y Av

erag

e W

age

Stat

utor

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D

iscre

tiona

ry

Com

pone

nts

Stat

utor

y: 6

% o

f new

pay

roll

each

yr

for 5

yea

rs (6

yrs f

or a

n ex

istin

g M

O b

usin

ess)

in a

com

bina

tion

of

reta

ined

with

hold

ings

taxe

s and

re

fund

able

tax

cred

its.

An

addi

tiona

l ben

efit o

f up

to 3

%

of n

ew p

ayro

ll ea

ch y

r for

5 y

rs (6

yr

s for

an

exist

ing

MO

Bus

ines

s) in

re

fund

able

tax

cred

its (n

ot to

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eed

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pay

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a W

orks

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100

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e14

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ount

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e W

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Stat

utor

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D

iscre

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ry

Com

pone

nts

Stat

utor

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% o

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pay

roll

each

yr

for 5

yea

rs (6

yrs f

or a

n ex

istin

g M

O b

usin

ess)

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tion

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yr

s for

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stin

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O B

usin

ess)

in

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ndab

le ta

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ntio

n W

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ive

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eD

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ing

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tain

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p to

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ny m

ust b

e at

-risk

fo

r rel

ocat

ion

out-

of-s

tate

.

Mis

sour

i Wor

ks S

umm

ary

Page 5: Report to the General Assembly for Quarter Ending March 31

3

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Page 6: Report to the General Assembly for Quarter Ending March 31

4

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Page 7: Report to the General Assembly for Quarter Ending March 31

5

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Page 8: Report to the General Assembly for Quarter Ending March 31

6

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Page 9: Report to the General Assembly for Quarter Ending March 31

7

Com

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Page 10: Report to the General Assembly for Quarter Ending March 31

8

Missouri Works Quarterly Report for Legislators Closed projects as of 3.31.18

Company Name/ Requestor Program

Product Status

Mo Works Project Type

Retained Jobs

(Projected)

Retained Jobs

(Actual)

Total Benefits

AuthorizedTotal Benefits

ReceivedNew Jobs

(Projected)New Jobs (Actual)

Anticipated Investment

Actual Investment

Net General Revenue

Benefit Ratio (Authorized)

Value-Added/GSP in $

(Authorized)

Net General Revenue Benefit Ratio (Closed)

Value-Added/GSP in $ (Closed)

Missouri Works - Mega 120 WorksSUNGEVITY, INC. Closed Statutory $3,296,495 $119,718 180 173 $4,600,000 $0

Total Mega 120 Works $3,296,495 119,718 180 173 $4,600,000 $0

Missouri Works - Retention WorksBERNSTEIN-REIN ADVERTISING, INC.

Closed Discretionary 121 89 $1,007,741 $319,754 $11,740,000 $16,568,425 2.31 $549,000 3.53 $0

GEORGE K. BAUM HOLDINGS, INC.

Closed Discretionary 61 60 $1,295,366 $1,295,366 $6,300,000 $7,456,992 1.01 $61,000 1.19 $66,000

Total Retention Works 182 149 $2,303,107 $1,615,120 $15,191,575 $24,025,417 Avg: 1.66 $610,000 Avg: 2.36 $66,000

Missouri Works - Statewide WorksDIGITAL TALENT AGENTS, LLC DBA INFLUENCE & CO.

Closed Statutory $76,534 $6,793 22 13 $40,000 $0

FIDELITY COMMUNICATIONS CO.

Closed Statutory $357,006 $68,238 37 43 $825,000 $0

FISHER-ROSEMOUNT SYSTEMS, INC. - NOI # 1

Closed Discretionary $1,925,727 $99,651 60 29 $2,600,000 $0 1.37 $101,500,000 5.44 $9,527,000

OIX, INC. Closed Discretionary $490,840 $0 50 90 $12,673,210 $0 4.21 $42,206,000 1.38 $11,179,000

Missouri Works - Zone Works

Total Statewide Works $2,850,107 $174,682 169 175 $16,138,210 $0 Avg: 2.79 $143,706,000 Avg: 3.41 $20,706,000

Missouri Works - Zone WorksQM POWER, INC. Closed Statutory $615,984 $1,390 74 0 $890,000 $102,620 SHAMROCK GROUP, LLC

Closed Statutory $117,340 $16,214 30 0 $13,000,000 $115,044

Total Zone Works $733,324 $17,604 104 0 $13,890,000 $217,664

Total Quarter Ending 7.1.2017-3.31.2018 182 149 $9,183,033 $1,927,123 453 348 $49,819,785 $24,243,081 Avg 2.23 $144,316,000 2.89 $20,772,000

Page 11: Report to the General Assembly for Quarter Ending March 31

9

Missouri Works Quarterly Report for Legislators Closed projects as of 3.31.18

Company Name/ Requestor Program

Product Status

Mo Works Project Type

Retained Jobs

(Projected)

Retained Jobs

(Actual)

Total Benefits

AuthorizedTotal Benefits

ReceivedNew Jobs

(Projected)New Jobs (Actual)

Anticipated Investment

Actual Investment

Net General Revenue

Benefit Ratio (Authorized)

Value-Added/GSP in $

(Authorized)

Net General Revenue Benefit Ratio (Closed)

Value-Added/GSP in $ (Closed)

Missouri Works - Mega 120 WorksSUNGEVITY, INC. Closed Statutory $3,296,495 $119,718 180 173 $4,600,000 $0

Total Mega 120 Works $3,296,495 119,718 180 173 $4,600,000 $0

Missouri Works - Retention WorksBERNSTEIN-REIN ADVERTISING, INC.

Closed Discretionary 121 89 $1,007,741 $319,754 $11,740,000 $16,568,425 2.31 $549,000 3.53 $0

GEORGE K. BAUM HOLDINGS, INC.

Closed Discretionary 61 60 $1,295,366 $1,295,366 $6,300,000 $7,456,992 1.01 $61,000 1.19 $66,000

Total Retention Works 182 149 $2,303,107 $1,615,120 $15,191,575 $24,025,417 Avg: 1.66 $610,000 Avg: 2.36 $66,000

Missouri Works - Statewide WorksDIGITAL TALENT AGENTS, LLC DBA INFLUENCE & CO.

Closed Statutory $76,534 $6,793 22 13 $40,000 $0

FIDELITY COMMUNICATIONS CO.

Closed Statutory $357,006 $68,238 37 43 $825,000 $0

FISHER-ROSEMOUNT SYSTEMS, INC. - NOI # 1

Closed Discretionary $1,925,727 $99,651 60 29 $2,600,000 $0 1.37 $101,500,000 5.44 $9,527,000

OIX, INC. Closed Discretionary $490,840 $0 50 90 $12,673,210 $0 4.21 $42,206,000 1.38 $11,179,000

Missouri Works - Zone Works

Total Statewide Works $2,850,107 $174,682 169 175 $16,138,210 $0 Avg: 2.79 $143,706,000 Avg: 3.41 $20,706,000

Missouri Works - Zone WorksQM POWER, INC. Closed Statutory $615,984 $1,390 74 0 $890,000 $102,620 SHAMROCK GROUP, LLC

Closed Statutory $117,340 $16,214 30 0 $13,000,000 $115,044

Total Zone Works $733,324 $17,604 104 0 $13,890,000 $217,664

Total Quarter Ending 7.1.2017-3.31.2018 182 149 $9,183,033 $1,927,123 453 348 $49,819,785 $24,243,081 Avg 2.23 $144,316,000 2.89 $20,772,000

Page 12: Report to the General Assembly for Quarter Ending March 31

10

Project ID # of Business Days from PIR to RFP

# of Business Days from RFP to Proposal

# of Business Days from PIR to Response

Jobs 1-1602004 0 4 4Jobs 2-1602004 0 4 4

1712005 33 3 01712008 10 6 21801001 23 1 111801003 0 1 11801004 0 1 0

Location 1-1801007 2 4 0Location 2-1801007 10 4 0

1801008 1 2 31801010 1 2 31801011 1 2 31801012 2 7 41801014 17 5 0

Location 1-1802001 0 5 0Location 2-1802001 0 5 0

1802003 7 3 2Location 1-1802008 1 6 2Location 2-1802008 1 6 2

1802011 1 1 1

1802013 0 3 2

1803004 0 3 3

1803006 0 4 0

1803008 0 2 0

1803012 0 3 0

Average Response Time in Days 1.88

Proposal Assignment Tracking(January 1, 2018 - March 31, 2018)

Notes:*PIR = Date Completed Project Information Request is submitted to DED.**RFP = Date Request for Proposal is submitted to Finance.***Proposal = Date Proposal is completed and sent to Company.****Response = Date Proposal is sent to Company or Date of Response Letter, whichever is first.

*Duplicate Project ID #’s indicate multiple requested proposals.

Page 13: Report to the General Assembly for Quarter Ending March 31

11

Page 14: Report to the General Assembly for Quarter Ending March 31

12