School officials face vote on TIF position

The Cape Girardeau School District's final position on a proposal to grant tax-increment financing to developers of an upscale subdivision will be put to a vote at tonight's school board meeting.

After months of research and deliberation, school board members will vote on a position statement issued by superintendent Mark Bowles which does not endorse the TIF proposal made by developers of Prestwick Plantation, a new 600-acre subdivision near Dalhousie Golf Club on Bloomfield Road.

The meeting will be at 6 p.m. at the Board of Education Office at 301 N. Clark St. in the former vocational building.

Originally, the school district had indicated that its support of the proposal would depend on three conditions:

Land and $8 million in funding for a new attendance center must be supplied by the developers when 250 units have been sold.

There must be no loss of property tax revenue to the district (compared to projected tax revenue generated by the property without TIF development).

There must be guaranteed payment to the district in the TIF ordinance and bond language.

Citing the unpredicability of future construction costs and population changes, Bowles stated in the rationale that the biggest issues surround the requirement that developers provide land and funding for a new attendance center.

He also expressed concern over the future of the district's local property tax revenue should the development fail.

"A bonding consultant had indicated that judges in bankruptcy cases exercise great latitude in devising a resolution for each case," Bowles said. "A judge would have the authority, I am told, to commit future tax revenues to pay off the debt service of forfeited bonds."

Bowles said that raised the possibility that another developer could acquire the property, develop it and sell housing units that could bring in additional students while leaving the district with neither tax revenue nor the guaranteed payment from Prestwick to offset those costs.

Some school board members said they have a good idea of which direction they'll go.

"Tax abatements are not good for school districts," said Dr. Bob Fox, school board president. "In the back of my mind, I think this project will develop without a TIF."

Fox said many of the district's original questions about the TIF have not been answered satisfactorily.

Dr. Martha Zlokovich said she too supports the position statement.

"I'm sure the development would be great for the city, but I can't see how this fits the original intent of TIF," she said.

Board members Sharon Mueller, Mark Carver and Dr. Steve Trautwein said they are waiting to voice their opinions in case additional information is given at the meeting.

Board members Charles Haubold and the Rev. William Bird could not be reached for comment.

City officials have stated that the school district's approval would weigh heavily on their decisions surrounding the TIF.

Tax-increment financing is a way of paying for land acquistion or infrastructure for a project by using the increased revenue that is created by the TIF district.

cclark@semissourian.com

335-6611, extension 128