Council considers C-Street railroad, TIF plan

Last edited 1:53 p.m., Oct. 5, 2016

Speaking at yesterday’s Springfield City Council meeting, C-Street Studios owner Mary Collette called Frisco Lane off Commercial Street a dream that is “four blocks long, 35-feet wide and 25 years in the making.”

The business owner was among stakeholders in favor of combining tax increment financing revenues for the Commercial Street historic district with BNSF Railway credits to purchase land north of C-Street for development and additional parking. City staff is in favor of the first-reading bill to create Frisco Lane, an area that runs behind C-Street businesses parallel to the railroad tracks north of C-Street.

Collette said development of the four blocks between Campbell and Benton avenues has been restricted by the railroad’s legal right to the property north of those buildings. Owners technically have no legal access to the backs of the buildings. Legally, Collette said, the dumpsters of those businesses should be on their front doorsteps. She said a vent hood was denied by the railroad at Ms. Gilmore’s Tea Room and Vintage Suitcase, so the business does not have full use of its kitchen. Property next to Historic Firehouse No. 2 remains vacant despite several attempts to develop it.

“There were two major opportunities to develop that building and both of them were not able to go forward because of the lack of legal access to the north side of [the] building,” Collette said.

Sarah Kerner, interim director of economic development for the city of Springfield, said it was a coincidence that funding fell into place at the right time for improvements on C-Street.

The plan, if accepted by council, would create a one-way driving lane and additional parking on the north side of C-Street between Campbell and Benton.

Kerner said the BNSF would relocate the rail going through that area.

The $752,000 in credits from the railroad came as a result of city land transferred to BNSF for the West Wye connector project. The purchase also would be funded by $268,000 of $538,000 in TIF funding approved by council in 2008. The total purchase price from BNSF equates to $976,000.

TIFs allow growth in areas without raising taxes, creating a cycle where TIF funds help bring on new projects.

“When that whole cycle continues on for 23 years, the TIF terminates, the area has been redeveloped, the taxing jurisdictions begin receiving the full value of all those taxes that flow through and everybody benefits,” Kerner said.

The city of Springfield only has three TIFs. Kerner said the heavy use of TIFs in Kansas City and St. Louis gets pushback because of the impact on public school funding.

“This is an idea that has been around for decades,” Mayor Bob Stephens said. “I appreciate BNSF’s willingness to work with the city and the merchants along C-Street to make it a reality.”

Council will vote on the Frisco Lane plan at its Oct. 17 meeting.