The Columbia Kraft Heinz hot dog production plant will soon have new machinery and equipment that will boost the plant’s production, but cut the number of people who work there.
The upgrades will come by way of the Boone County Commission, which voted unanimously Thursday to approve a tax abatement agreement with the company. The agreement uses Chapter 100 bonds to finance the purchase and installation of new machinery and equipment worth $93.3 million. Boone County would own the equipment and lease it to the company.
Kraft Heinz will receive a 75 percent tax abatement on the new equipment and will make payments, called PILOT payments, to the county in lieu of taxes. The payments are equal to 25 percent of the personal property taxes that would have been paid on the equipment. The agreement is for seven years.
In order to receive the tax incentives, Kraft Heinz must maintain no fewer than 300 jobs with annual wages that are no less than the Boone County average. That average in 2015 was $36,284, or $17.44 per hour, according to the Missouri Department of Economic Development.
Read more: Columbia Missourian