TIF commission considers guidelines with limits

A St. Louis model for tax-increment financing -- including a 15 percent limit on assistance and a statement by developers demonstrating financial need -- has grabbed the attention of the Cape Girardeau TIF Commission.

The commission met Wednesday night for the first time since August to discuss recommending guidelines for the city council in granting TIF financing to future development projects.

With a TIF, development-generated tax revenue would be used to pay off public bonds to help finance development costs.

Commissioners suggested Cape Girardeau should pattern its policy after the city of St. Louis, which limits TIF funding for a project to a maximum of 15 percent of the project cost, except in cases involving redevelopment of existing structures. In those cases, developers can ask for waivers to request a higher percentage of financing.

The commission didn't vote on a proposed policy as only five of the 11 commissioners were present for the meeting at the Osage Community Centre.

Commissioners said they'll meet again to discuss the issue. No date has been set.

The issue of tax-increment financing or TIF sparked controversy earlier this year over the request of Prestwick Plantation developers for TIF money to build an upscale residential development surrounding Dalhousie Golf Club. The developers withdrew the request after objections from Cape Girardeau public school officials worried about the loss of tax revenue from tax abatements.