Southeast Missourian

Months of debate and compromise between Cape Girardeau School District officials and developers of a new subdivision came to a halt Monday night when school board members voted not to endorse a proposal for tax-increment financing.

A position statement issued by schools superintendent Mark Bowles, and unanimously approved by the seven board members, does not support the proposal by Prestwick Plantation developers. The developers have asked that TIF money be used to build infrastructure for a new, 600-acre residential subdivision near Dalhousie Golf Club on Bloomfield Road.

The funding for the infrastructure would come from property taxes generated by the project's development -- taxes that would, under normal development, go to the school district.

"It's been a controversial process," Bowles said. "But after all of our efforts we did not feel we had a way to 100 percent say the financial welfare of the district would be protected."

No representatives of Prestwick attended the Monday meeting.

Developers were surprised at Bowles' position statement and the school board's vote.

"We were shocked, to be honest," Mark McDowell, a Prestwick developer. "We were fairly confident we had a firm commitment from the school board."

The next step for developers is to resume talks with the TIF Commission, McDowell said.

No other choice

"There wasn't really another choice," said board member Mark Carver. "This might not have been my personal view, but we were charged with determining the best interest of the district, and I feel we did that."

The position statement will eventually be presented to the city's 11-member TIF Commission, which includes two representatives from the school district.

The commission will then make a recommendation to the city council. The council will have the final say in the fate of the proposal.

Since the initial proposal was made early last year, city officials have stated that the school district's opinion would weigh heavily on council decisions surrounding the TIF.

"I know that the school board has spent a tremendous amount of time weighing the factors of this proposal, and I'm interested in their position," Mayor Jay Knudtson said. "It appears as though the public sentiment is clearly negative in its position toward this TIF, and that may be the driving force behind the decision of the school board."

District officials had originally stated that their 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.

In the rationale for Monday's position statement, Bowles said the unpredictability of future construction costs and population changes made it difficult for district officials and developers to reach a compromise on the first condition.

He also expressed concern over the future of the district's local property tax revenue should the development fail, stating that there is a 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.

cclark@semissourian.com

335-6611, extension 128