Cape's TIF commission to plan ahead

Cape Girardeau is turning an aborted government-developer partnership agreement into a great learning opportunity that is going to help in the future.

Instead of parting ways and simply agreeing to meet the next time someone wants to try tax increment financing in Cape Girardeau, the city's TIF commission is staying together to work with the city planner to set some guidelines for any future proposals.

For background: Private developers proposed a subdivision around a golf course three years ago. Prestwick Plantation's principals wanted a financial boost from a tax increment financing district.

TIF designation means taxes normally assessed on the increased value of new development would go back into the development's infrastructure instead of to taxing entities -- mainly the city and school district.

The city council appointed a TIF commission in February 2002. Progress went at a snail's pace, mostly because of drawn-out negotiations between the developers at the school board.

Prestwick started out asking for $30 million in TIF financing and then cut the request to $9 million. It was no use, because local school district leaders felt any amount would be robbing the district of the money it would need to educate children moving into the district because of the development. At 600 acres, the subdivision would include homes, condominiums and cottages.

In all fairness, all parties involved were flying blind. While neighboring Jackson granted a TIF several years ago -- it resulted in the construction of the Buchheit store near I-55 -- Cape Girardeau had no experience in the matter. Little wonder Prestwick got tired of waiting and dropped its request to the city last month.

Developers say they will move the Prestwick project ahead on their own, even though it will be at a slower pace due to financial constraints.

But the TIF commission -- and ultimately the city council, which makes all final decisions on granting TIFs within the city limits -- will be prepared next time.

The commission will want to address specifics for when the development tool should be used. Business or residential construction? Who will benefit from the project? What's the maximum that can be granted for a certain type of development?

Some of the controversy over the Prestwick plan occurred, in part, because it was an upscale housing development built around a golf complex. TIFs nationwide traditionally have been granted in blighted neighborhoods.

Commissioners also should address ways to open the lines of communication between TIF applicants and the school district.

Only then, as one TIF commissioner said, will Cape Girardeau get the reputation as a place amenable to TIF applications. The city will be able to enjoy additional growth and success.