Council clears resolution for possible TIF district in downtown

The Cape Girardeau City Council approved a resolution Monday night authorizing the distribution of a request for proposals, related to the possible formation of a tax increment financing district in downtown.

By soliciting the proposals to redevelop portions of downtown, the city may identify projects and possible use of tax-increment financing -- TIF -- as a redevelopment tool.

The current Downtown Strategic Plan, adopted in 2009, calls for establishing a TIF district.

The city is working with Old Town Cape and the Chamber of Commerce as it determines how or whether it will move forward with the TIF district.

The theory of tax increment financing is by encouraging redevelopment projects, the value of property in a redevelopment area will increase. TIF allows the city -- which would be the master developer of the district -- to collect the increment gained in property taxes between the current value and the improved value, as well as 50 percent of the economic-growth-in-activity taxes that includes sales taxes and taxes on utilities. The city takes the revenue and invests it in approved developments, such as parking, lighting, infrastructure and rehabilitation.

An early district map -- the boundaries of which could be adjusted depending on the redevelopment proposals the city receives -- extends north to the Isle Casino Cape Girardeau parking lot and south to Shawnee Parkway, excluding the Southeast Missouri State University River Campus. To the east and west, it begins at the Mississippi River and expands in a stairstep-like fashion as far as Sprigg Street.

Some of the historic properties included in the possible district are the Marquette buildings along Broadway; the Hammelberger and Harrison Building, also on Broadway; the Common Pleas Courthouse on Lorimier Street; and the Haarig Commercial District on Good Hope Street. City Hall is included.

The entire process, which also requires appointments to a TIF commission, is expected to take about six months. Soliciting the requests for proposals is the first step.

City manager Scott Meyer said now the council has approved the resolution, city staff is responsible for preparing the request for proposals. While there has been some discussion about the matter, he said an exact timeline regarding when it will be posted for consideration by potential developers has not been established.

srinehart@semissourian.com

388-3641

Pertinent address:

401 Independence St., Cape Girardeau, Mo.