Commission recommends TIF plan to council

The room at the Osage Centre was packed Thursday night as landowners, developers and curious residents participated in the Cape Girardeau Tax Increment Financing Commission's public hearing.

It was the final step required before the commission could vote on a resolution to recommend to the city council regarding a redevelopment plan for the TIF district.

Five project areas are specified within the district's boundaries, which covers about 226 acres. It's roughly outlined by Sloan Creek and Highway 74 to the north and south and by Sprigg Street and the Mississippi River on the east and west.

Before opening the hearing, Mark Grimm, a lawyer from public-finance law firm Gilmore & Bell, gave attendees a brief explanation of tax-increment financing. TIF, he said, is a redevelopment tool that does not result in the levying of any additional taxes but captures part of any new taxes generated by any new development in the district.

Once the question-and-answer period began, many people pressed the commission to explain how redevelopment projects would be funded through TIF. As Grimm explained, "there's not going to be a pot of money," but the funds will be gathered a little at a time.

A developer interested in purchasing and renovating a property within the district would put up the money for the project -- just as with any other project, he said -- but could approach the city and ask to be reimbursed for some of the project costs. The reimbursement funds would come from taxes generated by the project.

If taxes relative to the property went up $4,000 per year, the developer could ask to get $2,000 of it back as reimbursement, Grimm said as an example.

The exact amount would depend on an agreement approved by the developer and the city.

And projects are only eligible for TIF assistance when they meet the "but for" test, meaning they would not be financially possible but for the assistance of TIF.

Property owner Linda Reutzel voiced concern favoritism could be an issue when it came time to consider project applications.

The review and approval process would be handled by city staff, another point that concerned Reutzel.

"I also don't believe that if you're adding this to the staff -- are you saying that our city staff has enough time to do extra work?" she asked the committee.

Committee chairman Al Spradling said he believed the city's staff was capable of handling the work.

"I hope we have enough interest that we are overwhelmed and we have so much interest we may need to hire somebody, but that's probably not going to happen," he said.

"It's going to be a project at a time. ..."

Those on the committee maintained TIF could be the "shot in the arm" some areas need -- particularly areas such as the crumbling Haarig district.

While few would disagree with a face-lift to some of the area's oldest and most neglected properties, an influx of new activity also could be an issue.

Cathy Thompson, who owns The Library at 10 S. Spanish St., pointed out the downtown area is already a little tight when it comes to parking.

"If we bring in a thousand people downtown now, and we develop more and more, and we bring 5,000 people in on the weekends, where are those 4,000 cars going to park?" she said. "I mean, it's great, but where are we going to put them all?"

Recognizing a need for additional parking may develop, the plan includes a $3.8 million budget for parking improvements.

This is part of the more than $48 million budget outlined in the plan for public projects.

It also includes funds for riverfront projects, sidewalk improvements and more.

At the close of the public hearing, the commission voted and unanimously approved the resolution to recommend to the city council.

Deputy city manager Molly Hood said the issue will be presented to the council, which has final approval on the matter, before the end of the year.

srinehart@semissourian.com

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Pertinent address:

1625 N. Kingshighway, Cape Girardeau, Mo.

10 S. Spanish St., Cape Girardeau, Mo.