On the agenda: Harrisonville Board of Aldermen — Data Center (Nov 2)

AGENDA
CITY OF HARRISONVILLE
BOARD OF ALDERMEN
REGULAR MEETING
CITY HALL
NOVEMBER 2, 2026
6:00 PM
1.

Call to Order
A. Pledge of Allegiance
B.

Roll Call

2.

Ceremonial Matters

3.

Public Participation

4.

Approval of Minutes
A. Board of Aldermen Minutes - Regular Session - October 19, 2026
B.

Board of Aldermen Minutes - Work Session - October 19, 2026

C. Board of Aldermen Minutes - Closed Session - October 19, 2026
5.

Agenda Items
A. Council Bill 79: A RESOLUTION OF THE BOARD OF ALDERMEN OF THE
CITY OF HARRISONVILLE AMENDING THE ECONOMIC
DEVELOPMENT INCENTIVES POLICY FOR THE CITY OF
HARRISONVILLE, MISSOURI. CHAPTER 100 BONDS – INDUSTRIAL
DEVELOPMENT – SALES TAX EXEMPTION ON CONSTRUCTION
MATERIALS - NO BONDS ISSUED.

6.

Aldermen and Committee Reports

7.

Report from the City Administrator

8.

Questions from the Media

Page 1 of 24

Regular Meeting

9.

Monday, November 2, 2026

6:00 PM

Adjourn from Regular Session

Posted on City Hall Bulletin Board this 29th day of October, 2026.

__________________________
Daniel Barnett, City Clerk

Public participation during regular meetings of the Board of Aldermen shall be limited to
those who have submitted a completed agenda request form. 2 Each person wishing to
address the Board during regular meetings of the Board of Aldermen on a topic not on the
agenda shall submit a completed agenda request form five (5) business days prior to the
meeting the person wishes to address the Board. If the agenda request concerns a complex
issue requiring staff research time, the opportunity to address the Board may be moved to
a future meeting instead of the meeting immediately following the submission of the agenda
request form. 3. Those that have submitted a completed agenda request form shall be
limited to three (3) minutes to address the Board, this time cannot be yielded to another
person and this time may be extended in three (3) minutes increments only upon a majority
vote of the members of the Board of Aldermen, with each additional three (3) minute
increment requiring an additional majority vote of the members of the Board of Aldermen.

Page 2 of 24

Regular Meeting

Monday, November 2, 2026

6:00 PM

Page 3 of 24

MINUTES
CITY OF HARRISONVILLE
BOARD OF ALDERMEN
REGULAR MEETING
CITY HALL
OCTOBER 19, 2026
6:00 PM
1.

Call to Order

The meeting was called to order at 6:03 PM by Mayor Mike Zaring.

A. Pledge of Allegiance
B.

Roll Call

Attendee Name

Organization

Title

Status

Bill Mills

Harrisonville

Board Member

Present

Sandy Franklin

Harrisonville

Board Member

Present

Larry Pfautsch

Harrisonville

Board Member

Present

Matt Turner

Harrisonville

Board Member

Present

Dave Doerhoff

Harrisonville

Board Member

Excused

Marcia Milner

Harrisonville

Board Member

Present

Gary Davidson

Harrisonville

Board Member

Present

Kile Chaney

Harrisonville

Board Member

Present

Mike Zaring

Harrisonville

Mayor

Present

Arrived

Others present: City Administrator Brad Ratliff, City Attorney Alex Felzien, Assistant City
Administrator Jeremy Smith, Community Development Director Christina Stanton, Police Chief
Darla Harris, Parks Director Grant Purkey, Public Works Director Matt Carver, Fire Chief
Rusty Sullivan, Executive Secretary to the City Administrator Theresa West, City Engineer Carl
Brooks, Deputy Fire Chief Derek Coulter, Detective Peter Sumner, HDR Engineer Ryan Saffels
and City Clerk Daniel Barnett – recording.

Page 4 of 24

2.

Ceremonial Matters
A. Buckle Up Phone Down Day Proclamation

Mayor Zaring was joined at the front of the room by Harrisonville High School TRACTION Club students Mariah
Coffey, Angela Rodriguez and Alexandria Tieman.
Zaring read a proclamation declaring October 28, as Buckle Up Phone Down Day in Harrisonville.

3.

Public Participation

None

4.

Approval of Minutes
A. Board of Aldermen Minutes - Regular Session - October 5, 2026

RESULT:
MOVER:
SECONDER:
AYES:
EXCUSED:

B.

Board of Aldermen Minutes - Work Session - October 5, 2026

RESULT:
MOVER:
SECONDER:
AYES:
EXCUSED:

5.

Passed
Alderman Marcia Milner
Matt Turner
Bill Mills, Larry Pfautsch, Gary Davidson, Kiley Chaney, Marcia
Milner, Matt Turner, Sandy Franklin
Dave Doerhoff

Passed
Alderman Gary Davidson
Sandy Franklin
Bill Mills, Larry Pfautsch, Gary Davidson, Kiley Chaney, Marcia
Milner, Matt Turner, Sandy Franklin
Dave Doerhoff

Agenda Items
A. Council Bill 77: AN ORDINANCE OF THE BOARD OF ALDERMEN OF THE
CITY OF HARRISONVILLE, MISSOURI AMENDING THE
HARRISONVILLE MUNICIPAL CODE REGARDING LICENSING
REQUIREMENTS FOR PRIVATE SECURITY OFFICERS AND PRIVATE
INVESTIGATORS.

City Attorney Felzien read the ordinance for the second time.
Staff report presented by Chief Harris.

Page 5 of 24

Harris said, following the request for amendments to the proposed ordinance during the October 5, Board of
Aldermen meeting, the ordinance has been amended to now ask that businesses who employ private security
provide the Harrisonville Police Department with a criminal history check for the individual, conducted using
fingerprints, and annual firearm proficiency documentation, if working in an armed capacity.
Harris said each business would still be required to obtain a City business license.
Alderman Davidson thanked Chief Harris for her efforts to make the process of securing a private security license
more smooth for both City staff and the applicant.
Upon passage, Alderman Mills designated the ordinance to be Ordinance number 3795.

RESULT:
MOVER:
SECONDER:
AYES:
EXCUSED:

B.

Passed
Alderman Gary Davidson
Marcia Milner
Bill Mills, Larry Pfautsch, Gary Davidson, Kiley Chaney, Marcia
Milner, Matt Turner, Sandy Franklin
Dave Doerhoff

Council Bill 78: AN ORDINANCE OF THE BOARD OF ALDERMEN OF THE
CITY OF HARRISONVILLE AUTHORIZING THE ISSUANCE OF A
COMBINED WATERWORKS AND SEWERAGE SYSTEM REVENUE BOND
(STATE OF MISSOURI – DIRECT LOAN PROGRAM – DESIGN PHASE)
SERIES 2026 IN THE MAXIMUM PRINCIPAL AMOUNT OF $4,074,000;
PRESCRIBING THE FORM AND DETAILS OF THE BOND; AND
AUTHORIZING CERTAIN OTHER ACTIONS AND DOCUMENTS IN
CONNECTION THEREWITH.

Staff report presented by City Engineer Brooks.
Brooks said the proposed planning and engineering loan from the Missouri Department of Revenue’s (MDNR) State
Revolving Fund (SRF) for the Raw Water Transmission Main and Raw Water Intake Pump Station Project is in the
amount of $4,074,000.
Brooks said the pay back for the loan begins on January 1, 2030, and ends on July 1, 2031. However, the loan will
be re-financed and incorporated into the MDNR’s SRF construction loan, currently approved up to $35,579,702, after
the project is bid and awarded in 2027.
Brooks said the project has been a necessary water improvements project for the safety and reliability of the City’s
one and only water source and supply for residents and business for decades.
Brooks said the project will allow the City to continue to provide safe and reliable water for decades into the future.
Brooks said the proposed ordinance allows City staff’s professional team to continue to negotiate with the affected
property owners to obtain the necessary temporary and permanent easement acquisitions.
Brooks said City staff City staff recommend approval of the proposed ordinances and supporting documents.
Alderman Davidson asked what the interest rate is on the planning and engineering loan.
Brooks said zero percent.

Page 6 of 24

Upon passage, Alderman Mills designated the ordinance to be Ordinance number 3796.

RESULT:
MOVER:
SECONDER:
AYES:
EXCUSED:

6.

Passed
Alderman Matt Turner
Larry Pfautsch
Bill Mills, Larry Pfautsch, Gary Davidson, Kiley Chaney, Marcia
Milner, Matt Turner, Sandy Franklin
Dave Doerhoff

Aldermen and Committee Reports

Alderwoman Franklin thanked the City’s Electric Department for their hard work to restore power in her neighborhood
during a recent outage. Franklin spoke about the Harrisonville Area Chamber of Commerce’s upcoming Witch Way
Wine Walk. Franklin asked all in attendance to be extra careful while driving, as children are out celebrating the
Halloween holiday.
Alderman Pfautsch reminded all in attendance about the upcoming Trunk-or-Treat event on the Harrisonville Square
on Sunday, October 25.

7.

Report from the City Administrator

City Administrator Ratliff reminded the Board of Aldermen about a series of upcoming City and community events.
Ratliff informed the Board that City staff are completing the final punch list items for the Ash Street Bridge Over
Towne Creek project.
Ratliff said the contractor is continuing to make progress on the Royal Street Extension project.
Ratliff said Spire Gas has made substantial progress on the utility relocation that is required before work can be
completed on the E Tabb Street 8-inch Sanitary Sewer Main project.
Ratliff said the contractor has begun work on the 2026 Milling and Overlay project, with paving scheduled for October
26-28.
Ratliff informed the Board that the Missouri Department of Transportation is reviewing the final plans for the Missouri
Highway-2 (South Street) Bridge Over Muddy Creek Tributary project, before advertising the project for bid. Ratliff
said all required rights-of-way have been acquired and cleared.
Ratliff said the project engineer for the Reconstruction of the Airport S Hangar Taxi Lane project will prepare the
notice of award to Lexco for asphalt work, anticipated to begin in May or June of 2027.

A. September 2026 Municipal Court Report
8.

Questions from the Media

None

Page 7 of 24

9.

Adjourn from Regular Session

At 6:37 p.m., the Board of Aldermen voted to go into Closed Session pursuant to RSMo. 610.021(1): for any
confidential or privileged communications between a public governmental body or its representatives and its
attorneys. A motion was made by Alderman Mills and seconded by Alderman Davidson. In attendance and voting to
go into Closed Session were Aldermen Chaney, Davidson, Doerhoff, Franklin, Mills, Milner, Pfautsch, Turner and
Mayor Mike Zaring. Mayor Zaring then convened the meeting in Closed Session.
Upon returning to the Regular Meeting, a motion was made by Alderman Davidson to adjourn from the Regular
Meeting. The motion was seconded by Alderman Turner. The motion carried with a unanimous vote. The meeting
adjourned at 7:14 p.m.

Mike Zaring, Mayor & Ex-Officio
Chairmen of the Board of Alderman
ATTEST:

Daniel Barnett, City Clerk

Page 8 of 24

MINUTES
CITY OF HARRISONVILLE
BOARD OF ALDERMEN
WORK SESSION
CITY HALL
OCTOBER 19, 2026
6:00 PM
1.

Call to Order

The meeting was called to order at 7:22 PM by Mayor Mike Zaring.

2.

Present
A. Roll Call

Attendee Name

Organization

Title

Status

Bills Mills

Harrisonville

Board Member

Present

Sandy Family

Harrisonville

Board Member

Present

Larry Pfautsch

Harrisonville

Board Member

Present

Matt Turner

Harrisonville

Board Member

Present

Dave Doerhoff

Harrisonville

Board Member

Excused

Maria Milner

Harrisonville

Board Member

Present

Gary Davidson

Harrisonville

Board Member

Present

Kile Chaney

Harrisonville

Board Member

Present

Mike Zaring

Harrisonville

Mayor

Present

Arrived

Others present: City Administrator Brad Ratliff, Assistant City Administrator Jeremy Smith, Fire
Chief Rusty Sullivan, Community Development Director Christina Stanton, Police Chief Darla
Harris, Parks Director Grant Purkey, Public Works Director Matt Carver, City Engineer Carl
Brooks, Executive Secretary to the City Administrator Theresa West, HDR Engineer Ryan
Saffels and City Clerk Daniel Barnett – recording.

Page 9 of 24

3.

Discussion Items
A. Raw Water Line Project Presentation

HDR Engineer Ryan Saffels presented an overview of the Raw Water Transmission Main and Raw Water Pumping
Station project.
Saffels spoke to deficiencies with the existing infrastructure issues that the new project would resolve.
Saffels presented a site plan and renditions for the project’s new pump station.
Saffels said the City’s 2024 Water and Sewer Rate Study Budget for the project estimated $23.3 million, with the
Facility Plan Engineers estimate at $29.6 million.
Saffels said the Facility Plan Engineer’s estimate for the project is $29.6 million.
Saffels said the final design engineer’s estimate is in progress.
Saffels said the City’s 2024 Water and Sewer Rate Study budget estimates the project at $23.3 million
Saffels spoke to the funding for the project, with available project funds for up to $35.6 million, with a 20-year
repayment term and an anticipated interest rate well below market rate.
Saffels said the City has applied for a grant to cover the $6.3 million gap between the budgeted number and the
Facility Plan Engineers estimate.
Saffels spoke to the current schedule for the project.
Saffels said the target date to start construction would be in the late spring of 2027.
Saffels said HDR estimates the project to take two years to complete.

B.

2027 Budget Discussion

Assistant City Administrator Smith led a discussion about the Capital Improvement Projects proposed within the
City’s 2027 budget.
Smith reviewed the existing City of Harrisonville CIP items that have been completed or are in progress.
Smith said the existing CIP items totaled $38,897,072, with $8,762,769 in grants awarded, $36,968,639 in other
funding and $1,928,433 in City matching funds.
Smith spoke to each 2027 CIP item and its estimated cost and funding source.
Smith said the 2027 CIP items totaled $37,026,937.61, with $1,628,421 in grants awarded, $33,226,502 in other
funding and $2,172,014.61 in City matching funds.
Smith spoke to a series of requested CIP items that are unable to be funded at this time.
Smith asked the Board to allow staff to place the cost for credit and debit card fees, when paying online, back on the
customer, instead of continuing to cover those fees.
Smith said the City is projected to pay $240,000 in credit and debit card fees in 2026.
A consensus of the Board of Aldermen was reached to allow staff to place the cost for credit and debit card fees,
when paying online, back on the customer, instead of continuing to cover those fees.

Page 10 of 24

A motion was made by Alderman Davidson to adjourn from the Work Session. The motion was seconded by
Alderwoman Milner. The motion carried with a unanimous vote. The meeting adjourned at 8:13 p.m.

Page 11 of 24

300 E. Pearl Street, P.O. Box 367  Tel: 816-380-8900  Fax: 816-380-8906  Harrisonville, MO 64701

To:

Board of Aldermen

From: Jim Clarke – Economic Development Manager
Date: November 2, 2026
Re:

Chapter 100 Bonds – ONLY Sales Tax Exemption on Construction Materials (No Bonds Issued)
Add to Economic Development Incentives Policy as Incentive Board of Aldermen will consider

GENERAL INFORMATION
Applicant:

City staff

Requested Actions: Approve – Amend Economic Development Incentives Policy to include as
Incentive Board of Aldermen will consider
Date of Application: November 2, 2026
PROPOSAL
Consider Board of Aldermen discretionary use of Chapter 100 Bonds Incentive tool – granting ONLY
Sales Tax Exemption on Construction Materials (STECM) – with no Bonds Issued - with use of
Chapter 100 Bonds Incentive tool.
Amend Economic Development Incentives Policy, to include Board of Aldermen consideration for
Applications and requests to use ONLY the Sales Tax Exemption on Construction Materials
(STECM) incentive with Chapter 100 Bonds – without Issuing Bonds.
PREVIOUS ACTIONS
Board approved Amended Economic Development Incentives Policy that includes Chapter 100 Bonds
Financing as an Incentive tool for Board of Aldermen consideration – currently with Bonds Issued.
Chapter 100 Bonds Financing was used for the following projects: (Bonds were Issued for both projects)
Walmart Distribution Center – Bonds Issued
JBQ Meats (Jack Stack) – Bonds to be Issued

1

Page 12 of 24

KEY ISSUES
City staff has received a few inquiries and requests in the past 6-12 months for this select and unique
Incentive, including:
1) MMT Technology
2) Old Hospital on Mechanic St. - Developer stated purpose for requesting Chapter 100 Bonds
consideration, was to receive the Sales Tax Exemption on Construction Materials.
3) Inquiry made in recent meeting with City staff – existing Harrisonville employer.
NOTE: Single-Family Residential projects are not eligible for use of Chapter 100 Bonds as Chapter 100 Bonds are for use by Industrial and Commercial projects – not for
owner-occupied residential projects. Owner occupied single-family residential development
would not be considered “commercial” for this Program, when the houses are sold, they are
no longer in the “flow of commerce”, as an apartment development with rents, would remain
in the “flow of commerce” – staying within the Statutory definition of a “Commercial” project.
Hence, this removes concerns of the City’s ownership and release of residential lots and houses.
NOTE: No projects in Harrisonville are currently using a Sales Tax Exemption on Construction
Materials ONLY Incentive with Chapter 100 Bonds.
Chapter 100 Bonds Program allows two possible Types of Incentives:
1) Property Tax Incentive (this is NOT a Tax Abatement or a Tax Credit or a Tax Exemption)
(Real Property Tax and Personal Property Tax Incentive)
2) Sales Tax Incentive
This discussion centers solely on the Sales Tax Exemption on Construction Materials Incentive.
Chapter 100 Bonds Structure: (Typically)
-

City owns the property – typically for the Term of the Bonds Issued (20 or more years)
Applicant has NO PROPERTY TAX LIABILITY (as the City would OWN the property)
Sales Tax Exemption on Construction Materials – City Issues a Sales Tax Exemption Certificate
Bonds Issued (typically)
Applicant is Tenant of property and Leases property from the City (City is the Property Owner)
Payments In Lieu of Taxes (PILOTS) are negotiated (percentage or Dollar Amount) and Paid by
the Applicant – for the Term of the Bonds (if Issued)
Execute an Agreement between the City and the Applicant – that the Applicant would Indemnify
the City for any and all misuse of the Sales Tax Exemption Certificate

2

Page 13 of 24

Chapter 100 Bonds – IF Sales Tax Exemption on Construction Materials ONLY were granted:
(Applicant would not be seeking or receiving any Property Tax Incentive with this option)
-

City owns the property (this is how the Applicant takes advantage of the Sales Tax Exemption on
Construction Materials – it is as if the City is purchasing the materials)
City would REQUIRE the Applicant to Pay 100% Payments In Lieu of Taxes (PILOTS)
(Equal to 100% Tax Liability - they would have Owed if they owned the property)
This would be effective during the construction period – while the City owns the property.
NOTE: With the 100% PILOTS – the Applicant would receive no Property Tax Incentive

-

City would OWN property for much shorter period of time – 6 months – 18 months (only during
Construction period) vs. 20 or more years for the Bonds Term
NOTE: This shorter-term City ownership - might be preferred for certain developments –
an apartment complex - for example.
NOTE: This Incentive structure – might benefit a smaller Industrial Employer - that may lack
the capacity to Purchase the Bonds.
(for projects when Bonds are Issued – the Applicant is required to Purchase the Bonds)

-

NO BONDS ISSUED
Applicant would Indemnify the City for any and all misuse of the Sales Tax Exemption
Certificate

Per Lauber Municipal Law
Currently lacking Case Law on this topic
Current reliance is on Statutory Language, at this time
Per Statutory Language, it appears the City can approve a Chapter 100 Plan that does not include the
issuance of Bonds.
Hence, if this Incentive request were granted by the Board of Aldermen - Sales Tax Exemption on
Construction Materials ONLY - Chapter 100 Bonds would NOT be Issued to finance the project.
Additionally, a Property Tax Incentive – neither Real Property Tax Incentive or Personal Property
Tax Incentive would be requested by the Applicant or granted to the Applicant.
However, the City would OWN the property, during the Construction Period, to implement the
Sales Tax Exemption on Construction Materials – the Tax Incentive. Therefore, the City’s property
ownership would be much shorter than if Bonds were Issued to finance the project – in that case the City
would own the property for the Term of the Bonds.
NOTE: Chapter 100 does not govern Sales Tax Exemption on Construction Materials. Chapter 144
Section 144.062 exempts from Tax – purchases of tangible personal property and materials used
in constructing, repairing, or remolding real property for political subdivisions. Retail is ineligible.
3

Page 14 of 24

STAFF COMMENTS AND SUGGESTIONS
NOTE: Staff has obtained clarification that Single Family Residential Development is not eligible
for use of the Chapter 100 Bonds Program. Hence, any previous concerns the Board of Aldermen
had with a Single-Family Residential Development, are negated by ineligibility of this type of project
and development for the Chapter 100 Bonds Program.
NOTE: The Board can specify and include in the Economic Development Incentives Policy, the desired
and preferred types of development projects, that might gain the Board’s favorable consideration for this
Incentive request.
NOTE: If the Board of Aldermen grants Sales Tax Exemption on Construction Materials ONLY –
but does not grant a Property Tax Exemption Incentive (Real Property or Personal Property) – 100%
Payments In Lieu of Taxes (PILOTS) would be required by the Applicant. (since the City would
own the property – the Applicant would have No Property Tax Liability – therefore, causing 100%
PILOTS to be required)
NOTE: Misuse of the Sales Tax Exemption Certificate, would result in the City being liable for the
Sales Tax that should have been collected on purchases. The City would execute a Development
Agreement between the City and the Applicant that Indemnifies the City IF Sales Tax Exemption
Certificate is misused by the Sales Tax Exemption Certificate holder. A Development Agreement was
executed between the City and GCD Partners, LLC (JBQ Meats developer) with an Indemnification
Section, including the misuse of Sales Tax Exemption Certificate.
NOTE: If the City does approve a Chapter 100 Plan without the Issuance of Industrial Revenue
Bonds and is challenged, the City would be defended with the analysis included in the
Memorandum prepared by Lauber Municipal Law – dated September 16, 2025 – that relies on the
language of the authorizing Statutes themselves.
STAFF RECOMMENDATION
Staff recommends the Board of Aldermen consider including this potential Chapter 100 Bonds Incentive
in the Economic Development Incentives Policy and adopt language establishing appropriate and
desired parameters for consideration of use of this Discretionary Incentive.
Staff further recommends, that language be included in the Economic Development Incentives Policy,
stating the preferred, or desired, types of developments and projects that would receive favorable
consideration by the Board. Additionally, stating the developments and project types the Board would
not give favorable consideration for use of this Incentive.

4

Page 15 of 24

ATTACHMENTS
Section 16 – Chapter 100 Tax Incentive of Economic Development Incentives Policy – with
language regarding Sales Tax Exemption on Construction Materials only – No Bonds Issued
Resolution
STAFF CONTACT:
Jim Clarke
Economic Development Manager

5

Page 16 of 24

Chapter 100 Bond Financing – Industrial Development
Statute: Chapter 100.010 – 100.200
Section 16. Chapter 100 Tax Incentive.
A. General guidelines. The City will consider the following factors when evaluating a proposal
to approve a development plan and tax incentive pursuant to Chapter 100:
1. Employment to be generated by the project and the acceptance of performance standards
(clawbacks) to enforce employment generation;
2. Financial feasibility of the project, the financial abilities of the applicant and the need for
public assistance;
3. The impact of the project on public improvements and services, and the impact on other
taxing districts and the improvements and services that they provide;
4. The revenues to be generated by the project for the City and other taxing districts;
5. Conformance with the City’s Comprehensive Plan and Future Land Use Plan;
6. Economic impact of the project.
B. The City will accept no credit risk when issuing bonds for a Chapter 100 project.
C. Property owned by the City pursuant to a Chapter 100 project will be exempt from all real and
personal property taxes.
D. Most favorable consideration will be given to Chapter 100 projects that propose the location
of new businesses and industries in the City, and which retain business that would otherwise
leave the City.
E. Tax incentives offered or granted, through the use of Chapter 100 Bond Financing, is solely at the
Board of Aldermen’s discretion.
F.

In all cases, the City will require the company to purchase the entire bond issue for
their project (real and personal property). The Board of Aldermen reserve the right to
make appropriate exceptions to this policy, in rare cases.

G. The company will be required to make Payments in Lieu of Taxes (PILOTS), to the
affected Taxing Jurisdictions, as agreed upon, as a percentage of the calculated tax
liability, or as a set dollar amount, the Board of Aldermen’s discretion.
H. Failure to pay PILOTS, as agreed upon, will result in termination and voiding of the
executed Lease Agreement, between the City and the company, further resulting in
termination of any and all access and use of subject City owned property (real and
personal property), for agreed upon operations.
I. The Tax Incentive/s offered and granted through Chapter 100 Bond Financing will not
exceed 75% or require less than a 25% Payments In Lieu Of Taxes (PILOTS). The
Board of Aldermen reserves the right to consider an 80% Tax Incentive with a 20%
Payments In Lieu Of Taxes in select, unique, high impact, exceptional quality projects.
But in no circumstance shall the Tax Incentive ever exceed 80%, or the Payments In
Lieu Of Taxes requirement be allowed below 20%.

Page 17 of 24

J. The Board of Aldermen does not favor combined use of Chapter 100 Bond Financing Tax
Incentives, related to Personal Property, with the Data Center Sales Tax Exemption Program
local level sales and use tax exemption.
K. Chapter 100 Bond Financing Local Tax Incentives Policy and Guidelines are outlined
below:
Real Property Tax Incentive through Chapter 100 Bond Financing may be considered
by the Board of Aldermen for projects that meet the following criteria:
1.
2.
3.
4.
5.

Minimum Total New Investment in Real Property of $5 Million or
Minimum New Annual (or Average Annual) Payroll of $10 Million or
Minimum New Full-time Jobs of 25 - at Harrisonville, Missouri, facility (within 2 years)
AND Average Wages will equal or exceed County Average Wages – provided by the
Missouri Department of Economic Development (DED)
Existing Business – Minimum New Annual (or Average Annual) Payroll of $5 Million
or Minimum New Full-time Jobs of 10 employees – at Harrisonville, Missouri, facility
(within 2 years)
Personal Property Tax Incentive through Chapter 100 Bond Financing may be considered by
the Board of Aldermen for projects that meet the following criteria:

1.
2.
3.
4.
5.

Minimum Total New Investment in Personal Property of $5 Million or
Minimum New Annual (or Average Annual) Payroll of $10 Million or
Minimum New Full-time Jobs of 25 - at Harrisonville, Missouri, facility (within 2 years)
AND Average Wages will equal or exceed County Average Wages – provided by the
Missouri Department of Economic Development (DED)
Existing Business – Minimum New Annual (or Average Annual) Payroll of $5 Million
or Minimum New Full-time Jobs of 10 employees – at Harrisonville, Missouri, facility
(within 2 years)

Standard Tax Incentive
Up to 50% Tax Incentive for up to ten (10) years for projects that meet the above established
thresholds.
Enhanced/Discretionary Tax Incentive
1) New/Retained Full-time Jobs with Average Wages Paying 150% or more of County Average
Wage as published by the Missouri Department of Economic Development (DED) – may receive
additional Tax Incentive of 5% per 10% incremental increase in Average Wage above 150% of
County Average Wage – not to exceed an additional 25% Tax Incentive benefit.
2) New/Retained Full-time Jobs with Average Wages Paying 200% or more of County Average
Wage as published by the Missouri Department of Economic Development (DED) – may receive
up to 25% additional Tax Incentive - at the Board of Aldermen’s discretion.
3) New Annual (or Average Annual) Payroll exceeding the Minimum of $10 Million - may receive
an additional Tax Incentive of 5% for every $1,000,000 increment above $10 Million – not to
exceed an additional 25% additional Tax Incentive benefit.
4) Projects with primary operations, or significant component, of Science and Technology or
Research and Development – may receive additional Tax Incentive of up to 25% - at the Board of
Aldermen’s discretion. NOTE: City staff will verify project eligibility using the North American
Industry Classification System (NAICS) Code.

Page 18 of 24

5) New/Retained Full-time Jobs exceeding the Minimum thresholds identified above (25 Jobs New
Business – 10 Jobs Existing Business) – may receive additional Tax Incentive of 5% for every 25
New Full-time Jobs for New Business and 5% for every 5 New Full-time Jobs for Existing
Business – not to exceed additional 25% Tax Incentive.
6) New Capital Investment exceeding the Minimum threshold of $5,000,000 (in either Real Property
or Personal Property) – may receive additional Tax Incentive of 5% for every $5,000,000
increment in New Capital Investment – not to exceed an additional 25%.
7) If a new facility is LEED Certified (or an existing facility is renovated to become LEED
Certified), or the facility achieves an established rating level, from the U.S. Green Building
Council’s Leadership in Energy and Environmental Design (LEED) Program (e.g. Silver rating or
higher) – may receive an additional Tax Incentive of up to 15% - at the Board of Aldermen’s
discretion.
8) Companies engaged in Advanced Manufacturing may receive favorable consideration by the
Board of Aldermen for a Tax Incentive up to 80%, with a Payment in Lieu of Taxes (PILOTS) of
20%. Advanced Manufacturing may include (not all inclusive) Additive Manufacturing
(sometimes referred to as 3D Printing); advanced materials, composites, and alloys; robotics and
automation; welding and machining with lasers; nanotechnology, among others.
9) Established, industry leaders, or proven emerging growth companies, engaged in Disruptive
Technologies, may receive favorable consideration by the Board of Aldermen for a Tax Incentive
up to 80% with a Payment in Lieu of Taxes (PILOTS) of 20%. Disruptive Technologies may
include (not all inclusive) Artificial Intelligence (AI) and Machine Learning; Blockchain
technology; Virtual and Augmented Reality (VR/AR); 3D Printing; Robotics; Cyber Security;
Drone Technology; GPS & Navigational Systems.

Chapter 100 - Sales Tax Exemption on Construction Materials (STECM) (only)
(Bonds will not be Issued)
100.010 Definitions –
(2) "Facility", an industrial plant purchased, constructed, extended or improved pursuant to sections
100.010 to 100.200, including the real estate, buildings, fixtures and machinery;
(5) "Office industry", a regional, national or international headquarters, a telecommunications operation,
a computer operation, an insurance company or a credit card billing and processing center;
(6) "Project for industrial development" or "project", the purchase, construction, extension and
improvement of warehouses, distribution facilities, research and development facilities, office
industries, agricultural processing industries, service facilities which provide interstate commerce, and
industrial plants,
While Chapter 100 Industrial Development programs typically include the issuance of bonds, issuance of
bonds is not required. Applicants may propose projects that involve the issuance of the City’s Sales Tax
Exemption Certificate for Construction Materials (“STECM”) and exclude the issuance of bonds. Use of
the STECM only will require that the City own the project property just as if it would if bonds were issued;
however, the City shall be required to own the project property only for the term of the STECM. The City
will lease the project property to the Applicant during the term of the STECM. As provided by Chapter 100
Industrial Development Statue Definitions, eligible projects include industrial, headquarters and backoffice operations.

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Any proposed project, that involves conveyance of a fee interest in property to the City of Harrisonville
shall, not less than twenty days before approving the Plan for a project as required by 100.050, RSMo.,
provide notice of the proposed project to Cass County and the Harrisonville Cass R-IX School
District, among other affected taxing jurisdictions. The twenty days notification is required - for a
proposed project - even if Bonds are not issued.
Any proposed project eligible for use of Chapter 100 Industrial Development program, will need to
comply with Statutory requirements for the Program, as well as, City of Harrisonville requirements, for
use of this Program.
Chapter 100 Industrial Development Statutory requirements will be performed:
Chapter 100 Plans shall conform to 100.050, RSMo., which requires a description of the project, an
estimate of the costs of the project, a statement of the source of funds to be expended on the project,
and a statement of the terms of the lease of the project property to the City. Additionally, a cost-benefit
analysis shall be prepared, also in conformance with 100.050, RSMo. A minimum of twenty (20) days’
notice will be provided to the County, affected School Districts and other affected Taxing Jurisdictions of
the Proposed Chapter 100 Plan and Project, before the Plan may be considered by the Board of
Aldermen.
Chapter 100 Plans shall be approved at the discretion of the Harrisonville Board of Aldermen.
Projects shall include the conveyance of fee interest in the subject property of proposed project to the
City of Harrisonville.
The Chapter 100 Plan shall include the identification of any Payments In Lieu of Taxes (PILOTS) expected
to be made by any lessee of the project, and the disposition of any such payments by the City. Property
tax abatement will not be offered or granted when the STECM is utilized without the issuance of bonds.
Thus, Applicants will be required to pay PILOTs in the amount that would have been due as property taxes
on the project had the Chapter 100 Plan not been approved.
The City may impose Administrative Fees, as allowed by the Statute, for administering the plan.
In accordance with 100.050, RSMo., any district or county imposing a property tax for the purposes of
providing emergency services under chapter 190 or 321 to the project area shall be entitled to be
reimbursed in an amount that is at least fifty percent but not more than one hundred percent of the
amount of property tax revenues that such district or county would have received in the absence of a tax
abatement or exemption provided to property included in the project.
The City of Harrisonville will require:
The City and Applicant shall enter into a Development Agreement, indemnifying the City of any and all
misuse of the issued STECM and stating the term of the City’s property ownership, which shall not
exceed the construction period. Additionally, the Development Agreement shall outline a property lease
arrangement between the Applicant and the City during the term of the STECM.
Developments/Projects – Eligible
Industrial: Production – Processing – Research & Development – Advanced Technology - Distribution
Commercial: Headquarters (Regional – National – International) – Administrative Offices - Back Offices

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Developments/Projects - Not Eligible:
Single-Family Residential
Retail
Board of Aldermen will most favorably consider the following Developments/Projects:
Manufacturing – Production, Processing
Research and Development operations
Distribution Centers using advanced technology and highly automated - paying County Average or higher
wages – at the time of a proposed project.
While various project types may be technically, or legally, eligible, to participate in the Chapter 100
Industrial Development Program – the Harrisonville Board of Aldermen will consider less favorably these
types of Developments/Projects for use of this Incentive Program:
Apartment Complexes
Low Wage Administrative and back-office operations
4-Plexes
Duplexes
Property Taxes (Real Property Tax and Personal Property Tax)
Real Property Tax and Personal Property Tax Incentives will not be offered or granted with use of Chapter
100 Bonds when Bonds are not Issued.
Payments In Lieu of Taxes (PILOTS) will be required at 100% of the Real Property Tax and Personal
Property Tax amounts that would have been the Property Tax Liability – had the Applicant owned the
property.
City’s Property Ownership of Project Property – Term/Length of Time
The City’s project property ownership shall not exceed the construction period. The preferred term of the
City’s property ownership shall be limited to the period of construction materials purchasing.
Indemnification of Misuse of Sales Tax Exemption on Construction Materials Certificate – Development
Agreement
The Applicant will indemnify the City of any and all misuse of the issued Sales Tax Exemption on
Construction Materials Certificate – as outlined in the Development Agreement.
Discretionary – Board of Aldermen is not required to offer or grant this Incentive, or required to Approve
any Application/s requesting this Incentive.

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COUNCIL BILL NO.
RESOLUTION NO.
A RESOLUTION OF THE BOARD OF ALDERMEN OF THE CITY OF HARRISONVILLE
AMENDING THE ECONOMIC DEVELOPMENT INCENTIVES POLICY FOR THE CITY
OF HARRISONVILLE, MISSOURI. CHAPTER 100 BONDS – INDUSTRIAL
DEVELOPMENT – SALES TAX EXEMPTION ON CONSTRUCTION MATERIALS - NO
BONDS ISSUED.
WHEREAS, the City of Harrisonville (“City”) believes that quality economic development will aid
in attracting and retaining business investment that will benefit the entire community; and
WHEREAS, the City of Harrisonville desires to increase the non-residential tax base to preserve and
enhance the City’s fiscal capacity to provide the public infrastructure and services necessary to
support economic development; and
WHEREAS, the economic development program goals of the City of Harrisonville include
economic diversification, broadening of the property tax base, stimulation of private investment,
enhancement and support of existing development, quality of materials and design, maintenance of
environmental quality, creation of and quality of employment opportunities, and increased per capita
income.
WHEREAS, the City of Harrisonville desires to support, encourage and attract high impact projects,
quality employers and quality new investment and development in the community, consideration for
incentives requests will be given, provided the project is eligible for consideration for public
assistance or incentives, the Applicant executes a Preliminary Funding Agreement with the City of
Harrisonville and the Applicant makes an initial deposit of $40,000, to cover costs incurred by the
City to conduct its Due Diligence, as result of the Applicant’s request for public assistance or
incentives.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF ALDERMEN OF THE CITY
OF HARRISONVILLE, MISSOURI:
The Economic Development Incentives Policy for the City of Harrisonville, Missouri shall be
amended to include the following:
Chapter 100 bonds – Industrial Development – Sales Tax Exemption on Construction
Materials - No Bonds Issued
SECTION 1: General Considerations for Economic Incentives Applications/Requests
A.

Each proposed project is unique and requires that every proposal be evaluated on its
individual merit and overall contribution to the City. The Board of Aldermen is not
required or obligated to approve Applications or to grant economic incentives requests.

B.

Care will be exercised in the use of economic incentives to thoroughly evaluate each
project to ensure that the benefits which will accrue from the approval of the incentive
are appropriate for the cost which will result and that the benefits are equitable to the

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City as a whole.
C.

All developments that receive economic development incentives are subject to the
development review process which includes: staff review of plan submittals, Planning
and Zoning Commission review, Board of Aldermen review and other Boards as
required by the City Code.

D. The City may take into account potential increased revenue to the City from sources
associated with benefits of a particular business or overall development. In addition, the
City may consider factors such as the character of the developer/applicant and the
development, the social and economic needs of the community and whether the business
has been identified as a target industry by the City.
SECTION 2: Chapter 100 Bonds – Industrial Development
A. Applicants requesting consideration for Chapter 100 Bonds Incentives requests will be
required to execute a Preliminary Funding Agreement. The Preliminary Funding Agreement
is to ensure the City has a funding source, outside of the City’s General Revenue Funds, to
cover the costs of the City performing its due diligence and review of the proposed incentive
and the proposed development.
The Preliminary Funding Agreement will require Applicants requesting public assistance or
economic incentives to Deposit in an account with the City $40,000. This $40,000 will be an
Initial Deposit Amount and may need to be replenished, if the City’s costs for performing its
due diligence and negotiating the incentive exceeds $40,000.
B. Costs that may be incurred by the City during due diligence and incentive negotiation include
a Cost-Benefit Analysis, Economic Impact Analysis, Blight Study, Developer Review,
preparation of a Term Sheet, preparation of a Development Agreement, among other
potential due diligence costs.
C. The City may engage the following Consultants and Attorneys for its Due
Diligence and Review (while the City is not restricted to use of only these parties)
Economic Development Attorney – Lauber Municipal Law
Developer Review and Financial Analysis – Baker Tilly Municipal Advisors, LLC
Bond Counsel – Gilmore Bell
SECTION 3: Chapter 100 STECM

While Chapter 100 Industrial Development projects typically include the issuance of
bonds, issuance of bonds is not required. Applicants may propose projects that involve
the issuance of the City’s Sales Tax Exemption Certificate for Construction Materials
(“STECM”) and exclude the issuance of bonds. Use of the STECM only will require that
the City own the project property just as it would if bonds were issued; however, the
City shall be required to own the project property only for the term of the STECM. The
City will lease the project property to the Applicant during the term of the STECM. As

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provided by the Missouri Constitution and State law, eligible projects
include industrial, headquarters and back-office operations.
SECTION 4: Chapter 100 Bonds - No Real and Personal Property Abatement with STECM
The Chapter 100 Plan shall comply with Sections 100.010 to 100.200, RSMo. The Chapter
100 Plan shall include the identification of any Payments In Lieu of Taxes (PILOTS)
expected to be made by any lessee of the project, and the disposition of any such
payments by the City. Property tax abatement will not be offered or granted when the
STECM is utilized without the issuance of bonds. Thus, Applicants will be required
to pay PILOTs in the amount that would have been due as property taxes on the project
property had the Chapter 100 Plan not been approved.
SECTION 5: Sales Tax Exemption on Construction Materials Certificate - Indemnify the City
for any and all misuse of the Sales Tax Exemption Certificate

The City and Applicant shall enter into a Development Agreement, indemnifying the City
of any and all misuse of the issued STECM and stating the term of the City’s property
ownership, which shall not exceed the construction period. Additionally, the
Development Agreement shall outline a property lease arrangement between the
Applicant and the City during the term of the STECM.
SECTION 6: That this Resolution and the associated Amended Economic Development
Incentives Policy shall become effective immediately upon its passage and approval.
PASSED AND RESOLVED by the Board of Aldermen and APPROVED by the Mayor of the City of
Harrisonville, Missouri, this ______ day of __________ 2026.
________________________________________
Mike Zaring, Mayor & Ex Officio
Chairman of the Board of Aldermen
ATTEST:
________________________
Daniel Barnett, City Clerk
WITNESS my hand and seal this ______ day of __________ 2026

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