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Hazelwood Council Approves Agreement With Fisery Solutions, Inc. for Relocation
The Hazelwood City Council approved the second reading of Bill No. 4134 establishing an Economic Development and Employment Training Agreement between the City of Hazelwood and Fiserv Solutions, Inc. Hazelwood agrees to loan Fiserv $770,000, subject to the conditions set forth in the Agreement.
Fiserv intends to use this money to consolidate two area facilities into one 182,000-square-foot site at the Lindbergh Distribution Center, owned by Duke Realty, near the intersection of McDonnell and Lindbergh Boulevards.
Currently, the company has a printing plant in Olivette and some administrative offices in Maryland Heights. In addition, Fiserv plans to close its facility in Boston and transfer some employees to the Hazelwood site. This merging process will involve 260 company employees with as many as 50 new jobs added to the company’s payroll.
“Fiserv approached the City of Hazelwood first about entering into this loan agreement. The company had already put into motion plans to move its four-color press, offices and direct marketing services to the Lindbergh Distribution Center,” said David Cox, Hazelwood’s economic developer.
“We didn’t actively go out and seek this business. They came to us and presented a convincing case why we should support their move to Hazelwood.”
Nationally, Fiserv is one of the largest technology and communications firms with a workforce of more than 20,000 employees. Its local division purchased The Jerome Group in 2006. The acquisition of this prominent business communications agency enabled Fiserv to provide direct marketing and membership services to existing clients. Locally, the company generates sales tax revenue in excess of $550,000 and $161,535 in property tax revenue.
Hazelwood officials, along with those from the Missouri Economic Development Department and St. Louis County Economic Council, have been meeting with local Fiserv representatives for several months on the details of a financial incentive package.
The loan agreement requires that Fiserv create and maintain at least 200 jobs with an average wage of at least $12.50 per hour during its duration. Also, the company must submit reports to the City on a regular basis regarding this information: the number of employees at the Hazelwood facility; the average wages for all such employees working there; and the total wages of all such employees.
Fiserv may, at any time, prepay all or a portion of the principal and interest due on the loan without any charge or penalty for such prepayment. However, the company must give Hazelwood advance notice of any voluntary bankruptcy proceedings.
In turn, Fiserv can use the loan funds for job training, equipment acquisition, site development and infrastructure construction. But the company must provide the City with a list of all equipment and other personal property purchased with this money.
