Officials in the Cape Girardeau School District turned down a financing proposal made by developers of an upscale subdivision during a long-awaited meeting Wednesday, but the two groups plan to investigate alternative solutions during the coming weeks.

"We feel the proposal the developers have given us fails our guidelines," superintendent Mark Bowles said. "It does not safeguard the interests of the school district, both short-term and long-term."

The Cape Girardeau School Board held a special meeting Wednesday with representatives of Prestwick Plantation to discuss details of Prestwick's request for $30 million in tax-increment financing to build infrastructure for a 900-acre subdivision near the recently completed Dalhousie Golf Club.

Bowles, school board president Dr. Bob Fox and TIF commission school representatives Rob Huff and Bob Blank met in a closed meeting Wednesday with developer Cord Dombrowski.

Developers want $24 million for infrastructure, $4 million for the school district, around $1.4 million to go toward improvements on Bloomfield Road and $600,000 for new city equipment. If compromises between the developers and school officials are reached, those figures may change dramatically.

The plan is to get the up-front money by selling bonds, which would be guaranteed by private investors, and then pay off those bonds with money that would have gone to local taxing entities.

Wednesday's meeting took place following the release of an analysis of the project by an independent consultant. The report by Chauncy Buchheit of the Southeast Missouri Regional Planning and Economic Development Commission gave a new estimate of $20 million for TIF funding, $10 million under what developers say they need.

Prestwick's representative at the meeting, Cord Dombrowski, could not be reached for comment Wednesday evening.

Encouraging development

Tax-increment financing is an economic tool used to encourage development. In this case, the increased taxes generated from the TIF district would go to fund infrastructure in that area for the next 23 years. Because this project is almost exclusively residential, the school district would be most affected since it depends on local property taxes for 65 percent of its annual budget.

In short, the school district potentially would be educating students from that neighborhood without receiving real estate taxes to do so.

In a press release issued after the meeting, school officials stated "information generated by answering these questions has led the district to view the proposal offered by Prestwick Plantation as unacceptable. Findings from an analysis conducted by the Southeast Missouri Regional Planning and Economic Development Commission were similarly viewed as being detrimental to the welfare of the district."

According to Bowles, there are three specific aspects of the current proposal that school officials take issue with: The percentage of taxes going to TIF, the amount of money the district would receive up front and the length of time the TIF would last.

Bowles said the district recommends only 50 percent of annual tax revenue from the new subdivision go to TIF. He also said the lifespan of the TIF should not be much more than 10 years.

Bowles said it is the district's position that infrastructure to be included in the TIF should be restricted to elements the city would typically be expected to provide, and that improvements to Bloomfield Road should be kept at an absolute minimum.

School officials also are considering the possibility of having to build a new elementary school because of the population growth the subdivision would spark.

Based on census figures, Bowles said the proposed 750-unit development can be expected to generate between 350 and 400 students, the equivalent of another elementary center.

Bowles said the cost of a new school would be much more than the $4 million offered by Prestwick developers. He estimated between $5 million and $10 million would be needed.

"We feel like the developers need to assume most, if not all, of the cost of a new school," Bowles said.

According to the press release, the district is not asking for the money up front, given the financial demands on the developers.

School board members were all concerned about setting a precedent for future TIF proposals. They're now considering holding public meetings to discuss TIF and obtain input from residents.

During the meeting, school officials also reviewed a list of 10 guidelines they developed to evaluate the current TIF proposal as well as future proposals.

"We wanted the guidelines so we had a sense of what the board wanted," Bowles said. "I feel like the guidelines are objective, comprehensive and address the needs of the community."

Rob Huff, the school's chief financial officer and TIF commission representative, said the school district has felt some pressure to make their recommendation.

"Whatever's going to happen is going to happen fairly quickly," Huff said.

At the school board's Oct. 22 meeting, Bowles plans to deliver a recommendation for a final position statement that would be communicated to the TIF Commission.

Bowles said he also plans to present a proposed timeline for public meetings at that time, and encourages district patrons to communicate their feelings at the board meeting.

Staff writer Bob Miller contributed to this report.

cclark@semissourian.com

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