After a two-hour public hearing about a proposal to redevelop West Park Mall, Cape Girardeau TIF commissioners overwhelmingly voted to recommend the TIF (tax increment financing) portion of the $104 million project to the City Council.
All but one commissioner voted in favor.
In advance of a public hearing, potential recommendation from Cape Girardeau's Tax Increment Financing Commission and an up-or-down vote at the City Council, those involved with a proposed redevelopment of West Park Mall have released additional details about the project...
The TIF portion accounts for up to about $18 million in local property and sales tax incentives over the course of 23 years. TIF allows developers to retain 50% of increased property and sales tax revenue up to a capped amount, with the local taxing units receiving the other 50%, plus all of the predetermined baseline tax revenue. Once the TIF period ends or the maximum approved amount is reached, the tax units receive all of the tax revenue.
Mall owners, River City Centre LLC, a group of six area residents, are asking local taxing units for an incentive package that could amount to a bit more than $49 million, including the TIF portion. The package includes municipal fee waivers ($100,000), sales tax exemption for construction materials ($3 million) and tax benefits from a Community Improvement District and Transportation Development District.
Commission chairman Al Spradling explained at the outset of the meeting that the commission's role is to narrowly evaluate the TIF question. It is a matter for the City Council to determine other components, including whether to negotiate parameters of the TIF itself.
In discussion period before voting, commissioner Rob Gilligan, president and CEO of Cape Girardeau Area Chamber of Commerce, said he would have liked to see additional financial information about the project, but believes it meets the threshold for a TIF project — blighted property and that the project would not be feasible "but for" public incentives.
Further, he noted the city does not have well-developed rules and guidelines for such projects and encouraged municipal officials to work toward improving such guidance.
One commissioner, Adrienne Henry, voted against the resolution. After the group adjourned, Henry, noting she supports redevelopment at the site, said determining the entire mall property to be blighted could "open the floodgates" to many properties in the city being found as blighted.
More than 80 people attended the public hearing, and nearly 20 of them offered comments. Those comments were about equally split between supporters and opponents of the public incentives package, though nearly all noted their support for redeveloping the mall.
Supporters contended the project would spur economic activity by drawing more consumers to the city, employing construction workers over the six phases of the project and retaining and adding permanent workers to the redeveloped mall and additional retail outlets.
Steve Halter, president of Poplar Bluff (Missouri) Area Chamber of Commerce, pointed to a TIF project in that community he said has revitalized the area, including retail, educational, health care and municipal developments. He said retail sales in the city have increased 75% since the Eight Points development, which was a $123 million project with $35 million in TIF incentives.
