Springfield City Commissioners voted Tuesday evening to approve a large tax-incentive program for its newest corporate resident, EF Hutton.
The financial industry giant moved its headquarters to the city earlier this year, promising Springfield officials it will bring more than 400 jobs to the city over the next five years. The company estimates the hiring would amount to more than $24 million in annual wages to Springfield employees.
Springfield would return half that money back to EF Hutton -- if the investment firm meets its employment goals. The incentive deal approved by city commissioners could amount to more than $235,000 dollars a year for EF Hutton for the next seven years.
Assistant City Manager Bryan Heck says the agreement is performance-based. He’s hopeful EF Hutton will meet its hiring goals and help keep much-needed business activity in downtown Springfield. "How the employment incentive agreement works, the company only benefits if they add the jobs they say their going to add. It's a sharing of the income tax. If they don't generate the jobs, then they don't see a benefit because they aren't generating income tax." The city of Springfield is facing cuts in police, fire and emergency medical services after voters rejected an income-tax increase in November.
