Missouri Senate Newsroom

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FOR IMMEDIATE RELEASE:    Sept. 29, 2011

Senate's Governmental Accountability Committee Examines State's Role in Economic Development Deal

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Failed Economic Development Project
Brings Attention to How Missouri
Attracts New Business to the State


JEFFERSON CITY — The Missouri Senate Committee on Governmental Accountability, chaired by Sen. Jim Lembke, R-St. Louis, is responsible for all matters relating to state laws, programs and agencies.  The panel is also charged with enacting new or additional legislation to improve the efficiency of any state law or entity.

The committee was recently called by the Senate President Pro Tem to investigate how a company received $37 million in bonds from the city of Moberly to build a new facility to make artificial sugar.  The company, prospected to create hundreds of jobs for mid-Missouri, later missed its bond payment and potentially left the burden for repaying the debt to the city.

In addition to the bond money from the city, the company also qualified for more than $17.6 million state tax incentives, barring it fulfilled its job-creation requirements.

Lawmakers on the Senate Governmental Accountability Committee will examine what role the state played in this economic development project.  The committee will meet on Wednesday, Oct. 5, 2011, at 1:00 p.m. in the Senate Lounge, located on the third floor of the State Capitol, to review submitted information regarding Mamtek, Wi-Fi Sensors (Kirksville), as well as other related businesses.

Other committee members serving on the Governmental Accountability panel include Sen. Brad Lager, R-Savannah; Sen. Will Kraus, R-Lee’s Summit; Sen. Chuck Purgason, R-Caulfield; Sen. Kurt Schaefer, R-Columbia (new member); and Sen. Maria Chappelle-Nadal, D-University City.

For more information about the Senate Newsroom, call (573) 751-3824 or email newsroom@senate.mo.gov.

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