Council gives first approval to expansion of Town Plaza tax district

The Cape Girardeau City Council on Monday night unanimously passed the first reading of an ordinance approving the petition to include property at 2103 William St. in the Town Plaza Community Improvement District and to extend the duration of the district's sale and use tax.

Scott Blank, owner of Bi-State Oil Co., spoke during the public hearing considering the petition and represented his family's partnership, Clila LP, which owns the 30,600-square-foot building and surrounding parking. The building's last permanent occupant was DuShell's Furniture and it has been vacant since 2005.

The Town Plaza Community Improvement District was established in 2007 and includes 16 acres of property consisting of the Town Plaza shopping center. The CID finances public improvements within its boundaries and is paid for by revenue generated from taxes imposed within the boundaries. Merchants in the district are required to charge an additional 1-cent sales tax to fund improvements.

The current overall sales tax rate in the CID is the 7.975 percent in Cape Girardeau plus the additional 1 percent of the CID, totaling 8.975 percent.

Clila LP wishes for the boundaries of the CID to be altered to include 2103 William St. and the surrounding 53,111 square feet of parking. If the CID boundaries are extended, the additional 1-cent sales tax also will be charged by any business that sets up at 2103 William St. Blank said Clila LP also wishes for the extension of the duration of the district's sale and use tax an additional 20 years from the day boundaries are altered to include the property. The CID's sale and use tax is set to expire at the end of 2029. With the passage of the ordinance, Blank said the use tax would be extended an additional four years to 2033, or 20 years after the year of its passage.

Chauncy Buchheit, executive director of the Southeast Missouri Regional Planning Commission, was asked by Blank to conduct a blight analysis to determine whether the property met criteria to be deemed a "blighted area." The property meets the definition of a "blighted" property under the CID Act, Blank said.

Buchheit has said the building's "blighted" status can allow the use of funds generated by the CID sales tax.

Plans for the property involve stripping the building down to its shell and building it back up, Blank said.

The installation of new plumbing, electric and fire suppression systems and exterior work that includes the relocation of exterior windows and entrances to the building, which will be moved to the east side of the building, along with improved parking and stormwater system are some improvements Blank proposed for the building.

The estimated costs of services and improvements is about $1.3 million, Blank said, which will cover 20,000 square feet of the building. The other 10,000 square feet will be paid for by additional funding and will be built to suit two tenants that will be able to occupy the building.

Clila LP has had about eight discussions with serious prospects about purchasing or leasing the property, and all fell through or backed out because of cost, Blank said. Without additional funding, Clila LP would not be able to secure a tenant because of the cost of the project, he said.

Blank said Clila LP is "basically assuming all the risk."

"The risk to the city is nothing," he said.

The ordinance's approval would enable the redevelopment of the property and provide additional revenue for the city, county and school district, Blank said.

After the council unanimously passed the first reading of the ordinance approving the petition to add real property to the Town Plaza CID and to amend the petition for the creation of a CID, councilwoman Loretta

Schneider said the redevelopment of the property would go well with the construction of CVS Pharmacy and potential redevelopment of William Street.

"[It] looks like a good start," she said.

The council is expected to pass the ordinance again on a final vote.

ashedd@semissourian.com

388-3632

Pertinent addresses:

2103 William St., Cape Girardeau, Mo.

401 Independence St., Cape Girardeau, Mo.