TIF Commission meeting clarifies terms for groups

GOLF-COURSE DEVELOPMENT

BY BOB MILLER ~ SOUTHEAST MISSOURIAN

Negotiations for a multimillion-dollar project that were previously stuck as three parties were waiting for each other to make the next move, got a nudge from the Tax Increment Finance Commission Tuesday night.

The TIF Commission put the wheels in motion for more productive communication between the Prestwick Plantation development group and the school district.

Going into Tuesday night's meeting, there appeared to be a three-sided problem involving developers, the school district and a city consultant that had stalled negotiations. While the developers wanted a meeting with the school board, the school board first wanted to see an independent consultant's report on whether a TIF would be justified, said Rob Huff, who represents the school district on the TIF Commission.

But the independent consultant, Chauncy Buchheit with the Regional Planning and Economic Development Commission, said the developers and the school board would have to negotiate their terms before he could complete his analysis.

After Tuesday's meeting, Buchheit said he will be able to come up with some theoretical numbers to give to the school board. He expects his analysis to be complete within 30 days.

Around a golf course

TIF is a way of paying for land acquisitions or infrastructure for a project by using the increased revenue that is created by that district. In this case, the Prestwick Plantation development group is asking that between $24 million to $28 million in TIF money be used to build infrastructure for a 900-acre residential subdivision that will surround a golf course.

The revenue would be mostly generated through increased property tax income as the land is developed.

The proposal calls for a $4 million allocation to the school district that would help offset the extra costs the school would incur as a result of adding more students with the residential development.

There are still many questions regarding that agreement. The two parties have not yet come to terms about how and over what period of time that money will be dispersed.

Huff voiced several concerns on behalf of the school board Tuesday night. He wondered about the payment schedule of the $4 million allocation and whether establishing a TIF might encourage a flood of developers to apply for TIFs.

But the main concern he voiced -- and what the TIF decision will ultimately come to -- is known as the "but-for clause," in which it is stated that the project cannot be completed without TIF funds. To do that, the board will have to review Buchheit's analysis.

"The board mainly feels it needs more information and is not yet prepared to endorse a TIF," he said.

Public voices

More than 30 members of the public crammed into an Osage Centre conference room -- some of them stood because there was nowhere to sit -- to witness the meeting. It was obvious several of them are not prepared to endorse the TIF proposal, either.

Though it was not a public hearing, commission chairman Al Spradling III allowed for some comments from the audience.

"I have to go out and get my own money to do what I do," said Gary Arnold, a Cape Girardeau developer. "I think this group should do the same thing."

Arnold was one of three or four residential developers who voiced their displeasure Tuesday night.

Earlier, Bob Suelman, the spokesman for the Prestwick group, argued that the reason no one had gotten approval for TIF status for a residential development before is because no one was willing to try to purchase and develop 900 acres around a golf course.

Jim Riley, who said he is involved in development in downtown Cape Girardeau, was the only person to speak in favor of the project. He said TIF was created by the state legislators as a way to stimulate economic development and that this project would bring in a lot of economic activity.

The next step for the TIF Commission involves a meeting at 7 p.m. on Sept. 17 to discuss some policy measures, including what types of things will be paid for with TIF money.

bmiller@semissourian.com

335-6611, extension 127