Perryville considering two tax increment financing districts

PERRYVILLE, Mo. -- A new downtown redevelopment plan in Perryville will ensure the town isn't going to rot from the inside out, says its mayor, Debbie Gahan.

The newly formed Perryville Tax Increment Financing Commission, including members of the board of aldermen, county commission and Perry County School District, held its first meeting Monday to discuss a plan for a TIF district to help attract new businesses to downtown.

Plans for a second TIF district in the area of Interstate 55 and Highway 51 were also discussed; however there is already a potential project identified within the proposed downtown TIF district.

An undisclosed developer has expressed interest in rehabilitating a long-vacant and foreclosed building at 102 S. Jackson St., next to the city's courthouse square. Dating back to the 1890s, the building needs major upgrades to meet current building codes, city administrator Brent Buerck said.

Establishing a TIF district would allow the city to assist a developer with rehab costs in order to get the building back into use, said Chauncy Buchheit, executive director of the Southeast Missouri Regional Planning and Economic Development Commission, which prepared the city's TIF plans.

If the districts are approved, the city could issue bonds to fund improvements in those areas, then use all new real estate taxes and half of all new local sales taxes generated to pay the bonds off. State law requires the TIF commission to hold a public hearing before recommending to the board of aldermen an ordinance establishing the TIF district and redevelopment plan.

The types of improvements needed in the downtown area and the I-55/Highway 51 area differ.

The city's downtown TIF plan includes a potential $12.6 million in improvements over 23 years.

"One thing to keep in mind about a TIF is there's no money there today," Buchheit said. "The only way there will be is if some development occurs."

The first identified project would be to spend $500,000 on the purchase and rehab of the building at 102 S. Jackson St. A developer has already expressed interest in the building, which takes up half a city block, but if the TIF district is approved, the city will advertise for proposals to see if there is other interest before select a project partner and approving any funding, Buchheit said.

The city's proposed downtown TIF district is 54 acres, roughly from Holly Street, east to North Walnut Street, and from Grand Avenue, south to West South Street. Within that area are about 100 parcels, with 77 buildings -- of those, 21 are considered dilapidated or deteriorated, Buchheit said.

"We're looking at this as a conservation area," he said. "It's not yet blighted, but if something isn't done, it will become blighted in the near future."

Need 'a sweet deal'

In recent years, much of the city's new development has been near I-55, where there is more traffic.

"You've got to have a sweet deal to make somebody interested in coming back downtown," Buerck said.

Preserving the downtown is an important part of attracting new industry to Perryville as well, Gahan said.

"When industry scouts come to look at Perryville, they will look at downtown, and if they don't like what they see, we'll be on the list of places not to come to," she said.

In addition to buying the 102 S. Jackson St. property, other downtown improvement projects proposed include streetscape upgrades, sidewalk and parking improvements, a mini park, sewer and water improvements, according to the downtown TIF district plan.

A total of $47 million in projects are proposed for the I-55/Highway 51 TIF district, an area which is mostly undeveloped land. Those include a new $4 million interchange off I-55 onto Highway 51 and $15 million for new streets, water and sewer lines and a new fire station.

Buerck told commission members not to think they were helping the city write a blank check for millions of dollars.

"Every time we're looking at a project, we will be thoroughly looking at it to make sure we will recoup our investment," he said.

While establishing a TIF district would mean less of a future increase in property taxes received by the Perry County School District, superintendent Kevin Dunn said he supports the TIF proposals.

"We're all on the same page when it comes to growth for our community," said Dunn, who serves as vice chairman of the TIF commission. "We know the city's growth will mean long-term growth for the district, too."

Not a new tax

The commission will hold a public hearing on both TIF districts at 2 p.m. Jan. 11 at Perryville City Hall.

"Existing businesses may not like the city spending money on what they may see as helping a potential competitor," Buchheit said when asked what kind of opposition the city could expect to receive. "People may think we're imposing a new tax. We're not. We're just redirecting where those taxes go, and it will go into a pot to make the whole area better."

Following the January public hearing, the board of aldermen is expected to consider ordinances establishing the TIF districts at its February meeting.

mmiller@semissourian.com

388-3646

Pertinent address:

One West St. Joseph St., Perryville, MO