TIF Commission sets public hearing, hears school district's concerns

Setting a date for a public hearing and hashing out concerns from participating taxing districts were among the top items on the agenda when Cape Girardeau's Tax Increment Financing Commission met Thursday.

It was the 11-member group's second meeting and its first gathering since the completion of a draft redevelopment plan.

Chauncy Buchheit, executive director of the Southeast Missouri Regional Planning Commission, created the draft. State statute requires the plan include estimated redevelopment project costs, anticipated sources of funds to pay the costs, the most recent assessed valuation data for the area and the estimated assessed valuation after redevelopment, among other information.

The plan also outlines why the area meets state requirements for the formation of a TIF district. State law requires redevelopment areas be classified into certain categories, such as a "blighted area" or a "conservation area." Cape Girardeau's TIF district is aiming for the latter.

"We don't feel it's blighted, but it could be in near future if there's not some dramatic improvements going into the downtown area," Buchheit said. "So it does qualify as a conservation area. ... We feel real comfortable [with that designation] and did a pretty thorough study of the conservation area."

To be considered a conservation area, 50 percent or more of the structures must be 35 years old or older. The study by Buchheit and his team indicated 64 percent of the 389 structures in the district meet that criterion. The study also showed 55 structures are unoccupied, and 192 of the structures are either dilapidated or deteriorated.

Buchheit also discussed the budget for the overall district and each of the five redevelopment project areas. The cost estimated for the total TIF-funded projects is $60,528,000, according to the plan. He said the projects are "pretty well spread" among the five redevelopment project areas, and most deal with public infrastructure.

The entire district covers 305 acres. It's 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.

Several infrastructure and riverfront improvements are proposed for project area 5, Buchheit said.

The riverfront project area is the largest in the district, and possible projects identified within its boundaries include improvements to provide docking and fueling facilities for large and small vessels visiting the city and a riverfront site allowing for an excursion vessel to be moored and launched from Cape Girardeau.

At the center of project area 1 is the Broadway and Fountain Street intersection. Area 2 covers most of the commercial downtown, such as Spanish and Main streets; area 3 includes the Common Pleas Courthouse and City Hall; and area 4 features the Haarig Commercial District on Good Hope Street.

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.

That revenue then is invested in approved developments such as parking, lighting or other infrastructure.

While supporters praise TIF as an economic tool capable of breathing new life into old, dilapidated properties that otherwise might have continued to fall into disrepair, taxing districts often have concerns about loss of revenue.

Concerns about how the TIF district would affect the city's school district financially were aired by Cape Girardeau School Board members at a Wednesday night meeting.

Superintendent Jim Welker, who represents the school on the TIF Commission along with school board president Kyle McDonald, shared some of those concerns at the commission meeting. State statute allows TIF surplus to be distributed back to the taxing entities, and Welker said the board would like the city to consider the possibility.

"Obviously, the school district has a considerable interest in this in terms of most of the PILOTs (payments in lieu of taxes) are coming from the school district," he said.

Mark Grimm, a lawyer from public-finance law firm Gilmore & Bell, said the TIF commission could include a recommendation regarding the distribution of surplus to the taxing entities. Commission member and Cape Girardeau Area Chamber of Commerce president and CEO John Mehner said he was in favor of the move.

"I understand where these two folks sit," he said, referring to Welker and McDonald. "I think it's important as we go down this road, because -- attacks on TIF, it always looks like it's set up to spur antagonism, and that's really not where we're trying to hit with this."

The commission also gave taxing districts until Sept. 28 to submit any suggested changes to the redevelopment plan.

The group will meet again Oct. 8 to discuss any proposals. The public hearing regarding the plan will be held at 6 p.m. Oct. 29 at the Osage Centre, 1625 N. Kingshighway.

srinehart@semissourian.com

(573) 388-3641

Pertinent address:

1625 N. Kingshighway, Cape Girardeau, Mo.