Mo. Lawmakers Push To Prevent Mamtek-like Failures
JEFFERSON CITY, Mo. (AP) -- Several Missouri lawmakers want to add 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.
The bills are a response to a failed project to build an artificial sweetener plant in Moberly. Construction of the Mamtek U.S. Inc. factory stopped last fall after the company missed a payment on $39 million in bonds issued by Moberly. State government offered $17 million worth of incentives, but none were ever paid.