Provision that lets cities share revenue goes to governor

An issue of local interest also took a major step forward Friday in the state Capitol.

A state Senate bill dealing with local government issues included a provision allowing cities to share tax revenue. The provision was advanced by Sen. Jason Crowell, R-Cape Girardeau, Rep. Nathan Cooper, R-Cape Girardeau, and Rep. Scott Lipke, R-Jackson.

The lawmakers put the provision on multiple pieces of legislation and succeeded in getting it to the governor's desk before the end of session.

The provision will be useful as it pertains to the new East Main Street-LaSalle Avenue interchange to be completed next year. The interchange, expected by local officials to attract big-box retailers and other sales tax generators, straddles portions of Cape Girardeau and Jackson.

The new law, say those who crafted it, will give the two cities the option to share revenue and avoid undue hardship on either party.

"Nothing in the bill mandates what happens next, it just allows them to begin a dialogue," Crowell said. "It's a situation where all political subdivisions can only do what the General Assembly allows them to do and they didn't have that tool in their toolbox, yet."

Cape Girardeau Mayor Jay Knudtson said he was shocked to hear several months ago that there were no provisions for this type of revenue sharing already on the books.

He said maximizing the economic impact of the new interchange will hinge on cooperation and having access to all possible economic tools.

"What we have to do to be successful is put every chip we have on the table and then systematically begin removing them," he said.

Those chips may include transportation development district status, community improvement district status or tax increment financing, he said. But Knudtson pledged not to allow the prosperity of one community be the downfall of another.

"We won't be a part of any deal that does that and eliminates 25 or 30 percent of [Jackson[']s] sales tax revenue," he said imagining a situation where the opening of a Wal-Mart near the interchange leads to the closure of the one on U.S. 61.

Jackson Mayor Barbara Lohr cautioned the issue is still in its early stages.

"I haven't done enough research to be very definitive about it, but my theory is that is a region, and in that region, the revenue, the sales tax revenue, should be shared in some type of proportionate way," she said.

--TJ GREANEY