City of Springfield staff and City Council members are seeking public input on the use of more than $500,000 in tax increment financing revenues for the Commercial Street historic district.
The city’s Commercial Street TIF plan has created available revenue of $538,000 since it was established in April 2008. City Interim Director of Economic Development Sarah Kerner said last year TIF revenues were $154,000, a 46.7 percent increase from $105,000 in 2015.
“It has steadily been growing the past few years, which is good news for the street, but you have to be cautious predicting about how it will perform in the future because to keep up really strong growth is hard to sustain,” Kerner said.
She added the city is projecting 3 percent annual growth for the TIF fund, and it is expected to generate nearly $180,000 in 2019.
Zone 1 Councilwoman Phyllis Ferguson and city economic development staff on Aug. 11 are scheduled to host the first in a series of public input meetings at White River Brewing Co., 505 E. Commercial St., regarding use of revenue in the Commercial Street TIF district. Staff will in turn make a recommendation to City Council. Those who cannot attend the meeting are encouraged to
fill out a comment card with the city’s economic development department by Aug. 25.
Residents and property and business owners identified in 2007 nearly $4.6 million in improvement projects for the district, extending eastward along Commercial Street from Grant Avenue to Janss Lumber at 329 E. Commercial St., and south from Frisco Lane to Pacific Street. No proposed projects have been completed.
Kerner said one project – paving Frisco Lane and adding 60 parking spaces, landscaping and fencing – could be helped by an estimated $752,000 in credit from the Burlington Northern Sante Fe railroad. The city
received the credit in exchange for 2.6 acres at Nichols Junction it transferred to BNSF for the West Wye connector project.?
The Frisco Lane project was calculated at $1.2 million in 2007, and Kerner said the current cost would likely exceed that estimate.
“To buy the property and relocate the rail lines is nearly $1 million, so then to go and pave afterwards will cost additional,” Kerner said, adding the city is working on estimates for that phase of the project.
Other potential projects and estimated costs include:
• streetscape improvements, $1.35 million;
• alley improvements, $500,000;
• Blaine Street improvements, $470,000;
• developing a business loan grant program, $250,000;
• refurbishing parking lots, $200,000;
• installing gateways/entryways, $200,000;
• Jefferson Avenue footbridge improvements and adding a stage with lighting and sound system, $150,000;
• acquiring blighted buildings and parking lots from willing sellers and renovating Commercial Club building, $150,000;
• installing public restrooms, $30,000;
• installing public art, $30,000;
• establishing a public radio station, $30,000;
• installing planters, $10,000;
• adding directional signage; $7,000
• installing park benches, $5,000; and
• installing cab stands, $4,000.
“None of that has been decided at this point, but we want input from the people on (Commercial) Street,” Kerner said. “It’s their tax money, and we want to do what they need and feel is necessary.”
The TIF plan banks incremental increases to property taxes based on assessed values after a property is improved. The city of Springfield and Greene County also can transfer up to 50 percent of incremental sales taxes to the TIF fund, which may be used for public infrastructure and capital improvements. Kerner said 2008 was the only year the TIF fund received sales taxes, which totaled $25,000.
