City to hold public hearing on mall project tax district

Cape Girardeau municipal officials are set to hold a public hearing to consider a portion of a West Park Mall redevelopment incentive package.

City Council members will consider a Community Improvement District (CID) proposal at 5 p.m. Tuesday, Aug. 15, in council chambers at City Hall.

The CID proposal, which would create a special taxing district within designated boundaries to pay for development on the property, is part of River City Centre LLC's $107 million plan for the 65-acre site that includes several asked-for incentives.

The largest portion of the incentives package involves a CID and a Transportation Development District. These instruments allow developers to impose an additional sales and/or property tax relating to a given project. A TDD specifically generates revenue to pay for transportation-related improvement projects. These portions of the package -- if the developers' sales and property value projections hold -- could offset up to $28 million in development costs (not including financing costs).

River City Centre LLC, owned by six area investors -- Lucas Haley, Michael Williams, Ben Ressel, Matthew Mills, Natalie Riley and Steve Holden -- bought the mall two years ago. They have proposed redeveloping the site in phases -- reconstructing much of the building itself and designing out-parcel developments around the site's perimeter.

Haley expressed optimism about the project.

"River City Centre looks forward to taking the next step in the approval process for the incentive package to allow the redevelopment of the West Park Mall. The City has been a great partner to work with throughout this time, and we are excited to continue to bring this project to fruition and benefit the community," he said in an emailed statement.

City Council members have not taken action on the project's tax increment financing (TIF) portion of the incentives package, which allows for developers and taxing districts to equally split increases in property and sales tax revenues over a specified period. The TIF proposal could be worth up to $18 million (not including financing costs) over a 23-year period. The city's TIF Commission recommended approval.

The developers have also asked for a sales tax exemption on up to $3 million in construction materials and for the city to waive about $100,000 in fees associated with the project.

The project has drawn criticism from some relating to the size and scope of the incentives package.

City manager Ken Haskin said, via text, municipal staff continue to negotiate with developers.