Tax-Increment Financing Commission named in Cape

For the first time in more than 10 years, Cape Girardeau will have an active Tax Increment Financing Commission.

The Cape Girardeau City Council sent a notice in July to local taxing entities to submit nominations for the 11-member commission, which will have its first meeting at noon Thursday at the Osage Centre.

Tax-increment financing is a method to encourage redevelopment in a blighted or conservation area, as defined by Missouri law. Establishing a TIF district would give the city another tool to help developers with rehabilitation costs and breathe new life into some of downtown's vacant or deteriorating buildings, supporters have said.

TIF allows the master developer -- in this case, the city -- to collect the increment gained in property taxes between the current value and the improved value, as well as 50 percent of the economic activity taxes, including sales taxes and taxes on utilities. The city takes the revenue and invests it in approved developments such as parking, lighting, infrastructure and rehabilitation.

In accordance with state law, the commission consists of six city appointments, two appointments by the local school districts, two county appointments and one appointment from other taxing entities collecting within the district. The proposed TIF district covers 305 acres and is roughly outlined by Mason Street and Highway 74 on the north and south, and Sprigg Street to the Mississippi River on the east and west.

Cape Girardeau originally formed the TIF Commission in 2002 to consider a proposed TIF district near Dalhousie Golf Club. The proposal ultimately was withdrawn by developers, and the commission has seen little action since 2003.

Despite the group's inaction, the council has continued to keep up with its six appointments over the years. Appointees Danny Essner, former mayor Al Spradling and Cape Girardeau Area Chamber of Commerce CEO and president John Mehner were all appointed in 2002 and have been reappointed over the years. Another former mayor, Jay Knudtson, was appointed in 2012, followed by Moe Sandfort in 2013.

The most recent appointment was made Aug. 3 at a city council meeting, when Adrienne Henry was appointed to take the place of resigned committee member J. Ronald Fischer. Fischer was first appointed in 2005 and reappointed as recently as 2010.

Sandfort's and Knudtson's terms expire next year. Essner and Spradling reach the end of their respective terms in 2017, while Mehner and Henry have terms expiring in 2018.

The Cape Girardeau School Board voted July 28 on its two appointees. School board president Kyle McDonald and Dr. James Welker, superintendent of Cape Girardeau Public Schools, were appointed to terms that do not have an expiration date and will continue to the end of the project. The combined three appointments made by Cape Girardeau County and the other taxing entities also have terms without a specified expiration date.

The county appointed Associate Commissioner Charlie Herbst and Treasurer Roger Hudson as its representatives in the commission.

Harry Kiefer, member of the Cape Girardeau County Mental Health Board, is the final member of the commission and was named the appointee by the remaining taxing entities within the district. Deputy city manager Molly Hood said those entities include the mental health board, the Cape Girardeau Public Library, Special Business District, Cape Girardeau County Senior Citizens Service Fund Board, the Cape Girardeau County Board for the Developmentally Disabled, the Cape Special Road District and Cape County Health.

The group's first meeting will essentially be "TIF 101," Hood said, as they go over state rules and requirements and outline the responsibilities and expectations of the commission.

Before the council moved to reconvene to commission, it approved issuing an open request for project proposals. The request asks applicants to provide a project description including the address and parcel number, plus a description of the proposed project's size, scope and phasing. Also required is the developer's background and experience, along with detailed financial information that will help determine whether the project is eligible for assistance through TIF.

The commission is required to hold a public hearing and make a recommendation to the city regarding a redevelopment plan, redevelopment projects and the designation of the redevelopment area. The city adopts the recommendations through the approval of ordinances.

srinehart@semissourian.com

(573) 388-3641

Pertinent address:

1625 N. Kingshighway, Cape Girardeau, Mo.

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TIF Commission members

Danny Essner

Al Spradling

John Mehner

Jay Knudtson

Moe Sandfort

Charlie Herbst

Roger Hudson

Adrienne Henry

Kyle McDonald

James Welker

Harry Kiefer