Nonprofits that attract visitors to Springfield may soon be selected to receive a new source of revenue after Springfield City Council members voted 7-2 in favor of a plan to divide hotel-motel tax dollars previously dedicated to the Wonders of Wildlife museum.
With the vote at the Sept. 24 council meeting, 60 percent of tax revenues will go toward select nonprofits for projects designed to attract tourists to the city, and the other 40 percent will be directed toward the city’s $16 million debt subsidy on Jordan Valley Park and Mediacom Ice Park.
In November 2011, WOW officials terminated the museum’s agreement to receive 20 percent of the 5-cent tax so the funds could go toward other city priorities.
Council weighed two options for the tax funds. Another bill would have redistributed 100 percent of the former WOW tax revenues to pay down the debt that is currently being subsidized by the city’s general fund on the downtown parks.
According to estimates the city provided with the bills, the general fund was slated to subsidize the debt on the downtown parks to the tune of more than $16 million through 2028. With the approval of the measure that several council members called a compromise, the general fund is only expected to pay out $12.2 million. Had all funds been dedicated to debt service, the general fund’s subsidy would have represented $6.7 million during the next 16 years.
Councilman John Rush, a former president and CEO of United Way of the Ozarks, stood opposed to the plan that will give select nonprofits 60 percent of the roughly $330,000 generated annually from the portion of the hotel-motel tax that had gone to the museum.
“If we were to split the money among several nonprofits, I don’t think it would have the same impact,” Rush said prior to the vote.
Councilman Doug Burlison also voted against the measure, saying earmarking the funds for debt service was the responsible thing to do.
Several council members said sharing the revenue with nonprofits represented an investment in the community.
“I think this reinvestment strategy still respects the will of the voters,” Councilman Jeff Seifried said.
In 1998, Springfield voters approved a 2.5-cent increase in the hotel-motel tax that made capital grants available for community nonprofits. In 1999, the city entered into an agreement with WOW that directed a portion of that increase to the museum’s operational budget.
Councilwoman Cindy Rushefsky called the approved bill a reasonable compromise.
“We are not going to grow unless we invest in attracting tourism,” Rushefsky said. “This preserves the spirit and intention of the ballot language.”
The city must now establish a Hotel-Motel Tax Reallocation Committee, charged with evaluating grant proposals and making recommendations of qualified nonprofits. According to the bill, the roughly $328,000 that has been raised since WOW terminated its agreement with the city would be directed toward improvements at the Springfield Expo Center.
At the Sept. 10 public hearing, representatives from the Discovery Center and the Springfield Regional Arts Council called for council to approve the revenue sharing measure.
Mayor Bob Stephens and Councilman Jerry Compton said at the Sept. 24 meeting that increased support could improve the overall quality of life for residents and bring new businesses to town.
“This seems like a prudent way to keep Springfield growing,” Compton said.
Blight for Bears Crossing?An ordinance seeking approval of the Bears Crossing Apartments Redevelopment Plan and Blight Report received a first reading at the Sept. 24 meeting.
The plan by Wicks-Wise LLC, which acquired the property in June 2011, calls for a declaration of blight at the northeast corner of South National Avenue and East Belmont Street based on several unsanitary and unsafe conditions listed in the blight report available at
SpringfieldMo.gov.
“Due to lack of normal building maintenance, minor defects and deterioration are evident (throughout) the entire structure, such as lack of painting, loose or missing floor tiles, carpet missing, holes in the floor and ceiling, broken windows, broken doors, roof shingles missing and damaged, and cracks over large areas,” the developer noted in the report.
If council agrees the property meets the state’s definition of blight, Springfield Economic Development Director Mary Lilly Smith said Wicks-Wise could receive tax abatement of up to 100 percent on property improvements for up to 10 years. She said the developer plans to tear down the blue, 11-unit apartment residence across from Missouri State University and build new student housing.
The four-story Bears Crossing apartments, which Marc Wicks of Wicks-Wise said is an estimated $1.6 million project proposal, would consists of eight four-bedroom rental units and on-site parking. Council is expected to vote on the plan Oct. 8.
White River BrewingCouncil held a public hearing to authorize a use permit for a brewery at 505 W. Commercial St. Developer John “Buz” Hosfield said in late August he plans to open White River Brewing Co. upon gaining proper licensing and approvals from city and state regulators.
Hosfield, a retired banker from the Los Angeles area, is reviving plans for the 10,000-square-foot property that was to house the C-Street Brewery, but his stepson and stepson-in-law failed in their attempts to get the brewery up and running, and each has since moved out of the state.
White River Brewing, Hosfield said, would start with four varieties of beer and possibly a seasonal brew, with the intent of distributing to local retailers and bars.
Springfield Planning and Development Director Ralph Rognstad said the property, at the corner of West Commercial Street and North Lyon Avenue, is zoned properly for manufacturing, but the zoning in the Commercial Street district requires a formal use permit. Rognstad said developers at the site had twice previously been granted a use permit, but those had both expired after a period of 18 months.[[In-content Ad]]
