Cape city council OKs final incentive plans

Cape Girardeau City Council outlined and approved the third and final piece of the economic assistance package Monday to rehabilitate the old Sears building in Town Plaza.

The package will combine to give developer Greater Missouri Builders a maximum of $3.6 million in tax incentives to rennovate the 40-year-old building.

On its first reading, council approved a development agreement drawn up by city staff that finalizes the terms of the city's financial assistance to the project. All three tax incentives are outlined in the six-page agreement.

The final tax incentive piece discussed in-depth for the first time Monday is a pledge of assistance through incremental sales tax revenue. In the agreement, Cape Girardeau pledges to give 1.5 percent of any new sales tax generated inside Town Plaza to GMB.

Cape Girardeau County also agrees to give 0.25 percent of its own new sales tax revenue in the plaza. The combined total of these two revenue streams cannot exceed $1.2 million, according to the terms of the contract.

The agreement expires in 20 years if it has not already reached the $1.2 million cap.

This means if sales in the plaza grow, GMB is rewarded. Mayor Jay Knudtson believes it is a creative way to capitalize on future growth.

"The municipality's vulnerability lies strictly with the amount of incremental taxes we're giving up. But it's important to remember, we're giving up something we never had," he said referring to potential sales tax revenue during the council's study session.

Knudtson also believes the city's cooperation with GMB is helping an area the council has officially designated as "blighted."

"It makes for a partnership that allows us to get creative to develop that area that otherwise would never be developed," he said.

Representatives from GMB said they hope to have the building ready for its new tenant, National Asset Recovery Service, by June. NARS is expected to employ between 350 and 500 workers at the site.

The council session wasn't all serious, though. To honor Pet Pals Day, owners brought 27 dogs and one cat into city council chambers for a proclamation by Knudtson.

The proclamation honors a program that brings pets into nursing homes and hospitals to assist people in need of companionship. Despite the crowded quarters, the event went off without a bark or a bite.

"Many of these dogs are friends so this is a way for them to socialize," said co-organizer Laura Hurst. The dogs ranged from a tiny beagle to the big, poofy standard poodle.

"I would have never thought this many dogs could coexist," Knudtson joked.

tgreaney@semissourian.com

335-6611, extension 245