City Beat: Council reviews Commercial Street TIF district

Council considered the Commercial Street Tax Increment Financing Plan, which would allow the city to capture 100 percent of new property taxes and 50 percent of new sales taxes from the Commercial Street district.

The plan goes back to 2004, when the revised Vision 20/20 plan for Springfield noted that Commercial Street should receive the same attention paid to the downtown area, which has seen a redevelopment boom in recent years.

Council approved a redevelopment strategy for Commercial Street in 2006 and then asked staff to prepare the Commercial Street plan and blight report.

City Redevelopment Director Mike MacPherson said implementing a TIF district is necessary for three reasons: inadequate street layout, unsanitary and unsafe conditions, and economic and social liability.

“These buildings are being underutilized, with many in a state of deterioration and needing repair,” MacPherson told council. “They can’t be put to their best use or generate the amount of taxes they should be able to. All of these things make redevelopment a slow process without some sort of inducement.”

Councilwoman Mary Collette, who owns property on Commercial Street, abstained from discussing the bill, adding that she also will abstain on April 7, when council is expected to vote on the plan.

Manager search

Council also approved two bills related to the search for a new city manager. One bill approved the proposal from Pennsylvania-based Arcus Public for the search, while the other set aside $50,000 from the general revenue fund for the search fee and travel expenses.

Arcus was chosen over Dallas-based Waters Consulting Group after several weeks of discussions and a March 13 public meeting.

Arcus is in charge of collecting information about the most-qualified candidates for the city manager position held by Bob Cumley, who retires June 1. The final decision on who will be offered the job belongs to council.

Mayor Pro Tem Gary Deaver, co-chairman of the city’s 21-member city manager search committee, said he doesn’t expect the full $50,000 to be used in the search process. About $20,500 will go to the search firm, while the rest will cover related travel expenses, either by candidates or search committee members.

Councilman Dan Chiles said that hiring a search firm is necessary, despite the additional cost.

“This seems like an expense that is beyond most people’s normal range of operation and understanding, but in the world of hiring a really good person, you have to be aggressive,” Chiles said at the meeting. “Springfield is going to face challenges, but there are people out there who thrive on challenges, and we need to go get them.”

Foreclosure crisis

In his regular city manager’s report, Cumley said Brendan Griesemer, the city’s neighborhood conservation manager, sat in on a March 19 panel discussion hosted by U.S. Sen. Kit Bond that focused on the country’s foreclosure crisis.

Bond sponsored the Security Against Foreclosure and Education Act of 2008, introduced in Congress in early March. The act would help families who have fallen behind after their interest rates adjust by allowing state housing finance agencies to issue tax-exempt bonds and use the proceeds to help refinance subprime mortgages.[[In-content Ad]]