TAX-INCREMENT FINANCING PLAN MAY BE ALTERED

JACKSON -- Supporters of a proposed tax-increment finance district are waiting to learn if property taxes will have to be collected to support development in the district.

Mitch Robinson and Chauncy Buchheit told Cape Girardeau County commissioners Thursday that it may be necessary to collect the property taxes, hold them briefly, and then disburse them to taxing entities in order to get bond financing for improvement projects that would be done in the district.

It was originally hoped that only sales-tax revenues would have to be collected for the projects, said Buchheit, an economic developer with the Southeast Missouri Regional Planning and Economic Development Commission.

But Buchheit said he has been advised that the district may have to be set up as a way to improve a "blighted" area lacking sufficient infrastructure, rather than for economic development.

In order to be able to sell the bonds, he said, the property tax revenue may be needed as a back-up source of financing for sales-tax revenues.

Buchheit said property tax revenues would "pass through" the TIF mechanism, then be disbursed to taxing entities as usual.

The TIF district is being proposed to help finance infrastructure improvements -- roads, water and sewer lines and other needs -- to help encourage industrial and commercial development in different areas of the county.

A draft plan of the district now under consideration includes the Nash Road area south of Cape Girardeau, the Cape West Business Park, the I-55 corridor and the I-55-Highway 61 interchange, including Cape County Parks North and South, Klaus Park and a small section of Jackson.

Robinson, the executive director of the Cape Girardeau Area Industrial Recruitment Association, said the TIF district would not affect sales- or property-tax rates and businesses within the district would not receive tax abatements.

Under his plan, 1995 would be established as a baseline, and all taxing entities within the TIF district would receive the same amount of tax revenues generated that year.

Any revenues generated over the 1995 level would be split 50-50 between the taxing entities -- cities, school districts and special funds, including mental-health and senior-citizen services -- and financing improvements within the TIF district.

"This is going to help spur development" within the district and will produce more tax revenue for cities and schools, Robinson said.

Robinson and Buchheit have presented the proposal to Jackson and Cape Girardeau city officials. The next step will be for the County Commission to approve creation of the TIF district.

Presiding Commissioner Gerald Jones said he expects the commission to take the action next week.

Then a TIF commission -- including representatives from both cities, the Jackson and Cape Girardeau school districts, other taxing entities and members appointed by the county commission -- will draw up the district's boundaries and a list of projects to be financed through the district.

"We've told them, think big enough to where we do this once," Jones said.

While drawing up the district's boundaries, it will be important to include industrial and commercial tracts that will produce tax revenues rather than just residential areas, Robinson said.

Associate Commissioner Joe Gambill said he doesn't want the commission to get into a "wrestling match" and have to settle disputes between providing improvements for residential vs. business developments.