TIF facilitates private investments

From the start, it was hoped that the casino would serve as a catalyst for widespread downtown revitalization. To that end, about a month after it opened, a group of private investors, chamber representatives and city leaders all began working earnestly toward the establishment of a downtown TIF district.

Simply stated, tax increment financing, or TIF, provides a mechanism that can make the difference for development projects that don’t otherwise work economically and therefore probably won’t happen (such as in blighted areas or with buildings of historical significance but requiring extraordinary reinvestments to be viable). Important to note is the fact that TIF activities do not affect existing taxes or their recipients. Only the increment or new tax that is generated (based on risk taken) is available to finance select and pre-approved expenses.

With TIF approval of the Marquette and H.-H. projects, city leadership is effectively partnering with private investors to convert a couple of white elephant properties into remarkable assets, potentially benefiting Cape Girardeau for years to come. The Marquette technology center could attract new era businesses and talent (jobs!) to Cape, while the H.-H. Building will also become a draw in the form of a new hotel for our downtown area — and thereby help further improve its image.

While I am not a part of the H.-H./Marquette development, I do know from personal experience that without public-private partnerships, and the courage and community commitment of private investors, these types of projects just don’t happen. It is more often the norm that properties like the Marquette and H.-H. would remain empty for 10 to 20 years or longer, serving to scar rather than enhance our city.

Worth noting is the fact that there are no guarantees here. American enterprise always includes risk and always works best with skin in the game and the potential to win or lose (another reason why I support the use of TIF: It’s not ‘government underwriting’ but instead a facilitator to attract private investments).

I applaud all those involved, I thank our city council for supporting this investment in our collective future, and I invite all those reading this to join me in continued support of these projects.

JAMES W. RILEY JR., Cape Girardeau