Sikeston City Council approves starting TIF process for proposed new cinema

SIKESTON, Mo. -- The first step toward a new eight-screen Malco cinema in Sikeston was approved by the Sikeston City Council earlier this week.

Council members approved beginning the process of establishing a Tax Increment Financing District during their special meeting Monday.

"I'm delighted to make the motion to proceed," councilman Bob Depro said.

While starting the TIF process is only a small first step, it also was critical, said Mike Bohannon, a Sikeston businessman and former city council member.

"It won't happen unless it goes in a TIF district," Bohannon said.

Bohannon added it is important to understand that this is just a preliminary step.

"All we are asking for today is to get the process started," he said.

A TIF district would enable Malco Theatres and other businesses within that area to be reimbursed for infrastructure improvements such as streets and lighting. Reimbursements would be made from sales and property taxes above what was generated at that location before the project, Bohannon explained.

Jim Tashie, executive vice president of Malco Theatres, confirmed for the council that sales tax is collected on ticket and concession sales.

With the ticket, "the tax is built in," he explained, and the price calculated to result in an even amount once the tax is added in.

"We just don't want to deal with pennies at the box office," Tashie said.

With the council's approval to begin the TIF process, the next step is for the Peckham, Guyton, Albers and Viets urban development firm of St. Louis to do an economic-impact study.

"And then at a later date the TIF Commission will be called," Bohannon said.

If all goes well there, "then the council will be asked to approve it," he said. "We are looking at a five- or six-month time frame to get this approved."

The TIF district would not be limited to where the theater would be built, but would take in additional ground "to hopefully develop the whole area," Bohannon said.

The proposed TIF district would be about 180 to 190 acres "from behind Wal-Mart to the railroad track," Bohannon said, and "from Highway 60 to Murray Lane."

Tashie said he has discussed building a new cinema in Sikeston with Bohannon for about two years.

"It's not an easy thing to do," Tashie said. "We are a family business."

And with the company typically managing two or three projects at a time, "we needed some help here," he said. "This is a risk on our part -- a risk on everybody's part."

Tashie said his company would like to build an eight plex in Sikeston to "try and keep people in the community" when they want to see a movie and, in doing so, "keep the tax money in town rather than see it go away."

The new movie theater would replace the Malco Trio on East Malone Avenue, which "we are not terribly proud of because it's 40 to 50 years old," he said.

TIF funds would not go toward constructing the theater, which Tashie said will cost about $5 million to build and equip.

"This is a smaller theater for us," he said. "We think it is a nice fit -- something everybody would be proud to have."

The theater will be built to current industry standards with stadium seating and digital projection, Tashie said.

"We're excited about the new technology," he said. "This will be a regional theater. When people see the project, they will be impressed."

Tashie said Malco Theatres also hopes for "the opportunity to add on as the market develops."

Malco Theatres will celebrate its 100th year in the movie theater business in 2015, he said.

Pertinent address:

Sikeston, Mo.