Vienna City Council approves Hippos refund

Company has invested over $6 million in marijuana cultivation facility, plans to invest $2.5 million more

By Laura Schiermeier, Staff Writer
Posted 9/15/21

VIENNA — During action at its August meeting, the Vienna City Council made and approved motions to refund payments on the property and building made by Hippos, the marijuanna cultivation …

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Vienna City Council approves Hippos refund

Company has invested over $6 million in marijuana cultivation facility, plans to invest $2.5 million more

Posted

VIENNA — During action at its August meeting, the Vienna City Council made and approved motions to refund payments on the property and building made by Hippos, the marijuanna cultivation facility now in operation in Vienna. 

In the company’s agreement with the City of Vienna, five percent of the property’s capital investment into permanent improvements went toward the purchase price of $300,000. Once this price was met, the money already paid by the company for the building and land is to be refunded to Hippos.

Mayor Tyler “TC” James said originally the company asked the city to give them the property, which had been vacant at the industrial development park along Highway V for a number of years. The council said no to giving away the property and instead priced the property at $300,000. James said they later found out giving a building to an incoming business is common practice among cities competing to add jobs and to improve its industrial/business/economic base. Thus far, Hippos has invested $6.47 million in the facility along Highway V in Vienna. James said the company has paid $15,000 to $20,000 and this is the amount to be refunded. The council understood from the beginning the company likely would meet the five percent threshold and the money Hippos paid was placed a separate fund. The city attorney will work with them for changes to the deed.

In other Hippos-related news, the city council approved the PACE Ordinance, which will allow Hippos to obtain funding of about $2.5 million for further improvements to the business. Josh Campbell, Executive Director of the Missouri Energy Initiative, a Missouri 501C3 dedicated to creating collaborative and innovation solutions to Missouri’s energy landscape that increases economic development, was present at the meeting. The council members wanted to limit the ordinance to real commercial property investments and not to include residential investments. 

Mayor James said the reason is because the PACE causes problems with mortgages as with residential mortgages it can “jump ahead” of the original mortgage. With a commercial loan, if there is a lien on the property the lean holder’s consent is needed. The council approved the ordinance that does not include residential properties. There is no cost or liability to the community with this type of loan. 

Nick Rinella of Hippos was present at the meeting. He told the council members Hippos now has a cultivation license and a manufacturing license for the Vienna facility. The company has about 30 employees in Maries County and most are from Vienna and the surrounding communities.

Among other business at the August Vienna City Council meeting:

—Vienna Fire Chief Mike Smith was present to request using Vienna’s American Rescue Plan Act (ARPA) money to help buy equipment for a fire truck. The request was for $15,669.95 for equipment the fire department wants to purchase through Sentinel Emergency Solutions, St. Louis. James said MRPC’s Kelly Sink is coming to go over the contract the city has with MRPC to administrate the proper expenditure of these federal funds. 

—The council did not make a decision about the Redel property tree issue and the city attorney will do some checking about the city’s responsibility. In July a tree limb fell down on the Redel home on Fourth Street from a dead tree located on a unimproved city street. A relative, Becky Redel Snodgrass, wrote a letter to the council saying the limb knocked down the power line to the house and caused damage to wiring in and outside of the house. The damage was detailed with a bill from Fred and Vince Ruder who did the electrical repairs. Family members and others cut down and moved debris from the yard to the city street. She said the tree had been dead for some time. A tree expert suggested the remaining tree also will fall on the house if not removed. Snodgrass asked the city to please remove the tree. 

—The council members agreed to split three ways among the sewer fund, water fund, and park fund the expense of the mowing equipment recently purchased as all three funds benefit from the mowing equipment. 

—The council held a public hearing approving the 2121 tax levies. The new general fund tax levy is $0.6314, which is anticipated to generate $55,078 in tax revenue from city real estate and personal property taxes. The city’s assessed valuation increased from 8,462,751 in 2020 to 9,026,927 in 2021. The city had new construction of 303,660. 

The tax levy for Special Road District No. 8 was set at $0.2353 and is estimated to generate revenue of $21,261. 

—The fiscal year July 1, 2020, to June 30, 2021, was amended to match actual expenses.

—Mayor James reported USGS is putting in testing wells behind his house to test for the PCE contaminant in the water.