Tagged: Mamtek

Mo. lawmakers seek requirements for officials involved in economic development projects

A House panel heard testimony Monday on eight measures aimed at increasing scrutiny of businesses that ask for government money. The legislation would require local governments to get insurance for municipal bonds for economic development projects and to hold public hearings before issuing bonds.

State and local officials would also have to share information they have about companies seeking development incentives.

Good morning! Here are some of today's starting headlines:

Slay authorizes $64 million in bonds for St. Louis parks

Funding for St. Louis City parks will no longer be siphoned into other capital improvement projects, following a bill signing by Mayor Francis Slay Monday night.

Governor Jay Nixon (D) says his administration wisely handled the vetting of a Los Angeles-based company that began building an artificial sweetener plant in Moberly, then pulled out after missing its bond payment to the small northeast Missouri town.

Moberly officials told a State House committee this week that the governor’s Department of Economic Development withheld emails from a DED consultant revealing that he could not verify whether Mamtek had a functioning plant in China.  Nixon did not address that accusation when talking with reporters today, but he did say no taxpayer dollars went to Mamtek.

The Missouri Department of Economic Development is defending its role in the Mamtek controversy, in which the town of Moberly issued $39 million in bonds to build an artificial sweetener plant which never opened.

DED Director David Kerr told the House Interim Committee on Government Oversight and Accountability that his agency carefully reviewed Los Angeles-based Mamtek’s request for state incentives, which were not issued – but he also said that it’s not DED’s role to double-check every claim made by every company seeking tax credits.