Reduced TIF getting serious attention

It's still too early to say whether a tax-increment financing district should be put in place for a proposed subdivision around the already constructed Dalhousie Golf Club. But a scaled-down request made by the subdivision's developers, Prestwick Plantation, sounds more reasonable and addresses basic infrastructure needs that Cape Girardeau can't afford.

If developed, Prestwick Plantation would include 700 homes on 900 acres around the golf course, which is described by golfers who have played there as one of the finest anywhere. As the homes are built, the assessed valuation of each lot would go up substantially. It is the tax revenue from this increase in value that would be used to pay off bonds if a TIF district comes to pass.

Originally, the developers proposed a TIF district to pay for $30 million of the costs associated with the subdivision. Part of that was a payment to the Cape Girardeau School District that could have been used, if needed, to build another elementary school to handle students who would be added to the district as a result of the development. The school board rejected that plan.

But the school district is just one part of the approval process for a TIF district. A TIF commission, chaired by former Cape Girardeau mayor Al Spradling III, has the responsibility of making a recommendation to the city council, and the council has the final say on the proposal.

Until Prestwick Plantation substantially lowered its request, there appeared to be little chance that either the TIF commission or the city council were in any hurry to move the plan along. In addition to considerable public criticism about the plan, there has been a legitimate concern about the precedent that would be set if this TIF district was approved. The city would have to be prepared to consider other TIF requests as well.

The $9 million plan focuses on costs that would otherwise be borne by the city. Widening of Bloomfield Road to accommodate existing traffic is something that's sorely needed, but that project isn't on the city's current Transportation Tax Fund list of priorities.

Other infrastructure needs include water mains, a sewer lift station, sewer mains and electrical lines to the Prestwick property.

The developers say they are still pursuing the possibility of private financing for the project, which in that case would mean there is no need for a TIF.

TIF districts are designed to overcome some of the huge up-front costs associated with major developments that are expected to have a positive impact. One example is the TIF district Jackson created for development of the Buchheit store on Old Orchard Road.

Without a TIF or some other mechanism to generate a lot of money initially for major infrastructure improvements, Cape Girardeau's current financial situation won't cover the major utility costs needed for this project. And without those utilities, Prestwick might not be able to move ahead with its development plans.

The TIF commission will have to consider whether tax-increment financing is appropriate in this case. And the TIF commission and the city council must remain sensitive to the precedent any decision will set for other potential development.

TIF commissioners are taking a cautious and responsible approach to this proposal, relying heavily on a cost-benefit analysis being made independently by the Southeast Missouri Regional Planning Commission. A public hearing is scheduled for Aug. 14. There's still a lot of information to be considered before any final decision is made.