The Cape Girardeau City Council will be asked to establish a tax increment financing district in an effort to breathe new life into some of downtown's vacant or deteriorating buildings.

The council is scheduled to consider first reading of an ordinance to approve the redevelopment plan at its Dec. 21 meeting.

City manager Scott Meyer said Wednesday no developer has proposed a specific project yet.

"People have discussed projects in the past. There has been some interest. We do think it is an appropriate tool," he said.

John Mehner, president and CEO of the Cape Girardeau Area Chamber of Commerce, said a tax increment financing district, or TIF, is a tool made available by the state to help redevelop older areas.

Mehner said he is not deterred by the lack of projects from developers.

"Some of them may be waiting until the TIF is established," he said.

Five project areas are specified within the proposed district, which covers about 226 acres. It's roughly outlined by Sloan Creek and Highway 74 to the north and south, and by Sprigg Street and the Mississippi River on the east and west.

City and civic leaders stress such a district doesn't involve levying additional taxes. TIF captures part of any additional tax revenue generated by a qualifying new development.

Mehner said, "A lot of TIFs in the state are project-specific. This is area-specific."

Molly Hood, deputy city manager, said the proposed district offers a way to conserve structures and improve the area.

"We want to preserve existing property values," Hood said.

Establishing a TIF takes time.

"We have been working on it for several months," Hood said.

The Cape Girardeau Tax Increment Financing Commission has recommended the council establish the TIF district. Hood said TIF money could reimburse developers for some costs associated with redevelopment projects including stabilizing older buildings as well as funding public enhancements such as stormwater improvements and green spaces.

Mehner said other cities have used TIFs successfully to spark economic development. It makes sense for Cape Girardeau to use this economic development tool, he said.

"It is a good thing," he said.

mbliss@semissourian.com

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