Judge approves Cape Girardeau's first transportation development district

Cape Girardeau’s first transportation development district has been established at the intersection of U.S. 61 and Interstate 55.

Midamerica Hotels Corp., the land owner, petitioned Cape Girardeau County Circuit Court in October to establish the special taxing district.

Judge Michael Gardner approved creation of the district Friday. In his ruling, he authorized Midamerica to elect a board of directors at 3 p.m. Jan. 5 at the office of attorney John Grimm, who filed the paperwork to set up the district.

Midamerica, as owner of the property, would have had the sole vote in approving a maximum 1 percent sales tax as outlined in the judge’s order.

But since Friday’s ruling, the site of the under-construction Cape Girardeau SportsPlex on the property has been deeded to the city, Grimm said.

As a result, the city now is a property owner in the taxing district, along with Midamerica, and under state law can cast a vote on the tax issue.

The city council accepted the general warranty deed at its meeting Monday night.

Under state law, the tax can be levied for up to 40 years from the date on which the tax is first imposed.

According to court documents, the tax could generate $100,000 annually.

The Midamerica Crossings Transportation District encompasses about 83 acres, including 76 acres on the northeast quadrant of the intersection and seven acres on the southeast quadrant near the veterans home.

The benefits of the district won’t be seen until new retail businesses are established in the district and a special sales tax is levied, Grimm said.

Midamerica is building a new section of Veterans Memorial Drive that would let the company develop the site. City engineer Casey Brunke said Tuesday the work is about 40 percent finished.

City officials expect the transportation improvements to be finished before the Cape Girardeau SportsPlex opens next spring.

While Midamerica is supervising the transportation project, the city has inspected the construction to ensure it meets city code, Brunke said.

According to court documents, Midamerica envisions a commercial development that could include a hotel, convenience store, a couple restaurants including a fast-food entity and a retail strip center.

The transportation development district, or TDD, will provide a funding mechanism to recover costs of constructing the road, as well as accompanying grading, curb and gutter, sidewalk, drainage and lighting improvements.

It also would finance future installation of traffic signals at the intersection of Limbaugh Lane, Veterans Memorial Drive and the U.S. 61 intersection, according to the court documents.

The city council approved an agreement Monday with Midamerica that stipulates the city will maintain the street and other transportation improvements once built.

Under a memorandum of understanding signed earlier this year, the city would contribute up to $1.5 million from its transportation trust fund to partly reimburse Midamerica for construction costs if revenue is available after completion of other city transportation projects.

But deputy city manager Molly Hood said Tuesday there is no guarantee any city tax money will be available for cost reimbursement for that project.

The section of Veterans Memorial Drive near the SportsPlex is not among the transportation projects slated to be funded as part of Transportation Trust Fund 5, she said.

Voters first approved a half-cent sales tax for transportation projects in 1995 and since have renewed it every five years. In August 2015, voters approved Transportation Trust Fund 5 to fund specific projects.

“We have cautioned them that traditionally we haven’t had excess revenue,” Hood said, adding the city’s transportation projects are done on a pay-as-you-go basis.

The city won’t know whether there will be excess revenue until all the Trust Fund 5 projects are completed, which likely is not before 2021 or 2022, Hood said.

The Midamerica transportation district project is expected to cost more than $9 million, which includes construction and administrative expenses as well as the donated value of the land, according to court documents.

mbliss@semissourian.com

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