Developer asks court to OK tax district board for improvements near Hobby Lobby

A Cape Girardeau developer has petitioned the circuit court to set up a tax-funded transportation development district to help pay for a new entrance to a shopping area and other public improvements.

If approved, it would be the second such transportation district established in Cape Girardeau.

Scott Rhodes of South K Inc. and Rhodes Development Company own the shopping area on South Kingshighway where Hobby Lobby and several other stores are.

The developer is redeveloping the commercial property and adding tenants.

As part of the redevelopment, a new entrance/exit will be constructed on William Street, which borders the north side of the site. There currently is no exit or entrance from William Street.

Other proposed improvements outlined in the court document include relocation, reconstruction and extension of South Kingshighway entrances to the site, reconstruction and improvement to the parking lot, as well as grading, drainage, curbs, gutters, sidewalks, stormwater facilities, landscaping, utility relocation, signage and other items associated with the project.

The transportation-related project will cost nearly $759,000, according to the petition.

The petition was filed Wednesday in Cape Girardeau County Circuit Court.

According to the petition, the South K Transportation Development District would have a five-member board of directors, representing the property owners.

A sales tax of up to 1 percent would be levied on all retail sales in the district for a period of up to 25 years to recover costs associated with the improvements, the petition said.

Proceeds from the sales tax would be deposited into a special trust fund and used solely to fund the transportation project and the cost of administering and collecting the tax, according to the petition.

Scott Rhodes said Monday he believes the tax "will pay out in less than 10 years."

At that point, the tax would expire, Rhodes said.

Rhodes said under state law, a development district tax has to be used "for the benefit of the public" and the money cannot be used to construct stores.

Alex McElroy, development services director for the city, said his office helped the developer's effort to petition for creation of a transportation district.

But the decision to seek such a taxing district was the developer's alone, he said.

McElroy said the state-governed mechanism allows for "a self-imposed" sales tax to help fund the improvements.

Rhodes called the district tax "an interesting tool" to fund public improvements.

Work on the public improvements won't start until next year, he said.

Judge Michael Gardner must approve the district before steps can be taken to impose the added sales. But Rhodes said the judge's ruling is expected to be "a formality."

A Feb. 13 court date has been set in the case, according to court records.

mbliss@semissourian.com

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