City Beat: Council addresses two community improvement districts

by Eric Olson

SBJ News Editor

eolson@sbj.net

As high-profile and high-cost projects increasingly crop up downtown, so do state-sanctioned community improvement districts.

At its Sept. 20 meeting, Springfield City Council discussed amending the existing Convention and Entertainment Community Improvement District in Jordan Valley Park and established a petition to create a new center city political subdivision, the Heer's Tower and College Station Community Improvement District.

The amendments discussed for the Convention and Entertainment CID, which includes property owned by the city and John Q. Hammons Hammons Field, Springfield Expo Center, Jordan Valley Car Park, University Plaza, Hammons Tower and the future arena would give the city power to impose property and sales taxes within the district sufficient to cover the debt service on Hammons Field.

The city issued $6 million in bonds for construction of the baseball stadium, and negotiations are ongoing with Hammons for additional funds backed by the city, said City Manager Tom Finnie. Hammons begins debt service payments on the initial bonds with a $195,000 installment due Dec.1, followed by $545,000 next year.

"The mechanism is in place to ensure that if in fact there was not sufficient revenue coming from outside the city for baseball, then we could put a tax on (the district), so there is no (general) taxpayer liability for the baseball financing," Finnie told council.

According to the bill, property within the district would be taxed at $4 per $100 of assessed valuation should Hammons Field revenue fall short.

Based on Greene County tax records, the assessed valuation of real estate in the district is $4.99 million.

"This gives us the power to do it," Finnie said of the bill, which will be voted on at the Oct. 4 meeting. "Their revenues are projected to more than cover it."

The amendment also would give the city authority to appoint two additional board members to the district's existing five members, which would give the city majority representation.

After the discussion, Councilman Conrad Griggs asked Finnie where the much-publicized arena plans stood. "Is that going to happen?" Griggs said.

Finnie said he is optimistic it will, but nothing is concrete, yet.

"I'm cautiously in fact I'm passed cautiously I'm optimistic that that will happen," Finnie said. "That's not a done deal but certainly the discussions have been very positive about the arena."

Construction could begin as early as late this year or early next year, Finnie said.

Meanwhile, City Council unanimously approved establishing a petition for a Heer's Tower and College Station CID. The next step is collecting signatures from the three property owners within the district Heer's Tower owner Vaughn Prost, College Station developer Scott Tillman and city officials and any other property owners that would like to join, Finnie said.

The advantage to property owners would be free parking at one of the two planned parking garages within the district, he said.

Northwest study area

City Council unanimously passed a bill imposing a 180-day delay of development plans for northwest Springfield until a city study and review of the area is complete. Due to developer concerns for northwest Springfield, city officials are not accepting zoning revisions or new permits within areas along West Bypass between Interstate 44 and Mt. Vernon Street until recommendations are made.

"We have developers who are beginning to make investments in that area. Some of the developers have come to the city saying that they are concerned that there might be some development that would be counter to that northwest plan," Finnie said.

The area is mostly zoned for industrial use. New plans, such as Airport Plaza at the Orchard, call for a mixed-use of retail, restaurant, lodging and residential developments.

Councilman John Wylie said new development should be consistent with the city's northwest plan and the issue deserves another look.

Councilman Bob Jones added that taking time now is the right approach.

"The point here is to be cautious and deliberative," he said.