Neosho board approves tax abatement for La-Z-Boy plant expansion
Jul. 27—NEOSHO, Mo. — A Neosho board has approved a tax break request for an upcoming expansion at La-Z-Boy's manufacturing plant.
The city of Neosho's Enhanced Enterprise Zone Board met Tuesday and approved property tax breaks for the 60,480 square feet of planned construction. The request will be considered on Aug. 3 by the Neosho City Council, which will make the final decision.
The expansion will be used for a new parts distribution center at the plant, and will be built on the building's east side. The company estimates construction cost of the center to be at about $6 million.
According to a news release from the company, the parts distribution center is part of more than $30 million in planned investments to the Neosho plant over the next two years. In addition to the parts distribution center, the company will make plantwide upgrades and renovations, and add a medical clinic for employees.
The request is scaled back compared to a request the company made of the Neosho School District in June. The district's Board of Education approved a request that also included a 27,660-square-foot addition on the plant's south side for a cafeteria and office space. The request to the city made no mention of that plan, according to documentation.
What remains unchanged between the requests, however, is the number of new jobs: The company plans to add 16 full-time employees for the parts distribution center.
Bill Snow, vice president of the Neosho plant, said in a statement that the number of employees to be hired is even higher; the company plans to hire more than 100 workers across the site.
The plant, located at 4301 Howard Bush Drive, currently has 546,348 square feet of space, according to information from the Newton County assessor's office. Of the taxing entities that collect property taxes from La-Z-Boy, the school district collects the largest share. The property tax rate for the district is $3.74 per $100 of assessed valuation. Other entities, such as the city of Neosho, Neosho-Newton County Library District and Crowder College, collect less than a dollar per $100 of assessed valuation.
The plant qualifies to take advantage of provisions in Neosho's codes that would allow property tax breaks of 100% over the first two years, 75% for the next eight years and 50% for the remaining life of an enhanced business enterprise zone.
A groundbreaking ceremony has been planned for Aug. 11.
This is a breaking report and will be updated. The Globe has requested an interview with La-Z-Boy corporate officials for more details on construction plans. This report will be updated with the company's responses.
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