TIF FINANCING

Economic developers say they have hit on a way to solve a problem that has long plagued the Nash Road industrial area: lack of potable water. The proposed solution, so say these developers, would also be available for other parts of Cape Girardeau County that lack potable water. It is called tax-increment financing, or TIF.

Promoters of the idea are Mitch Robinson of Greater Cape Girardeau Industrial Development, John Mehner of the Cape Girardeau Chamber of Commerce and Chauncy Buchheit of the Southeast Missouri Regional Planning and Economic Development Commission. The three pitched their idea to the Cape Girardeau City Council, which gave it tentative approval. Their proposed TIF district would include, in addition to Nash Road, the land around the intersection of I-55 and Highway 61 between Cape Girardeau and Jackson as well as Cape West Business Park.

Most TIF districts focus on property taxes, but Robinson wants this one to be built around sales taxes. Under this proposal, which would also have to be approved by the county commission, 1995 would be established as the base year. The existing city and county sales taxes collected that year from the businesses within the district's boundaries would be the base amount. Fifty percent of the sales taxes generated within the district over the base-year amount would be earmarked for needed infrastructure improvements such as sewer and water lines.

The TIF proposal is an innovative solution to a problem that has long vexed developing areas such as Nash Road. It should be carefully scrutinized by both the city council and county commission.