Cape officials approve TIF project for mall project but not to extent asked for by developers

Cape Girardeau municipal officials took steps at their meeting Monday, Sept. 18, to approve large portions of a West Park Mall redevelopment plan.

City Council members approved a tax increment financing incentive for most of the 65-acre site and took the first step toward identifying the site as a Community Improvement District.

Council members approved a measure to mostly accept the recommendation of the city's TIF Commission. They read and approved for the first time ordinances to approve TIF reimbursements for most of the mall property (areas 1 and 2, which account for about 58 acres of the site), denying the TIF reimbursements on four proposed out-parcel properties (areas 3 through 6).

The actions came in a series of votes with Mayor Stacy Kinder and council members Shannon Truxel, Mark Bliss, Dan Presson and Nathan Thomas voting for each measure.

Alderman Robbie Guard was not present at the meeting because of a financial conflict. Guard issued a statement pointing to his role as a shareholder and officer at the bank used by the developers. Kinder noted at the meeting Guard has not played a role in negotiations between city officials and the developers.

Council member Tameka Randle voted against each measure, explaining early in Monday's meeting she opposed the incentives package, terming it "excessive".

"Leveraging incentives to the max with a private enterprise is very disheartening," she said.

Randle contended malls and other bricks-and-mortar retail outlets across the country are in decline.

"We just passed a use tax. You know why? Because more people are shopping online," she said.

Several audience members shared Randle's concerns.

Dan Drury, president of Midamerica Hotels Corp., cautioned the officials regarding incentives, saying he and other developers would seek such help with future projects.

"What's good for the goose is good for the gander," he said.

Dennis Vollink, a retired Drury Southwest executive, contended the redevelopment plan "doesn't stand on its own".

Kevin Whitfield, president of Drury Southwest, said municipal officials are considering plans without a full understanding of what's to come with the redevelopment.

"(The developers) won't give the tenants to the city, but they will give them to potential bond buyers. How does that make you feel?" he asked.

Scott Rhodes, owner of Rhodes Group, called the incentives package "grotesque".

In other action related to the mall, council members also read and approved for the first time an ordinance to create a CID for the property.

Owners of River City Centre LLC have proposed a $107 million redevelopment plan for the mall, which they bought more than two years ago. River City Centre is a group of local real estate developers and strategic partners. The group is owned and managed by Lucas Haley, Michael Williams and Ben Ressel, with additional investment from Matthew Mills, Natalie Riley and Steve Holden, through trusts and affiliates.

The TIF incentive for the project 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.

Cape Girardeau TIF commissioners voted to recommend the TIF portion of the project to the City Council in June.

The CID allows developers to impose a sales tax on purchases made within the boundaries of the property to fund redevelopment efforts. If approved, the mall's CID will impose a sales tax at the rate of 1% and an annual special assessment in an amount $2 per square foot of gross leasable area of each building within the district.

Those funds (up to $18.07 million) will finance and reimburse the eligible CID project costs for public improvements made, and services provided in connection with the development, operation and maintenance of the proposed property, including ongoing administrative costs of the district, property acquisition, site preparation and improvements.

The term of the proposed district shall be a maximum of 27 years from the date the City Council approves an ordinance authorizing the formation of the district.

A public hearing on the CID portion of the project was held in August.