Instead of the recently common budget-cut debates, Springfield City Council has a fortunate dilemma. The city’s administrative body must decide how to best spend some $300,000 annually that is no longer earmarked.
At its Sept. 10 meeting, council held a public hearing on a pair of bills that would determine the recipient of hotel-motel tax dollars formerly allocated to the Wonders of Wildlife museum.
In November, WOW terminated its agreement with the city to receive 20 percent of hotel-motel tax revenues – minus a 6 percent administrative fee – so the funds could go toward other city priorities.
During the last four years, according to Springfield Economic Development Director Mary Lilly Smith, the tax generated an average of nearly $330,000 per year for the museum that was the brainchild of Bass Pro Shops founder and conservationist Johnny Morris.
One bill would reallocate 100 percent of the tax revenues to pay a debt shortfall on Jordan Valley Park and Mediacom Ice Park that is being covered by the city’s general fund. The other bill would direct 40 percent of tax revenues to the city’s debt subsidy on the downtown parks, with the other 60 percent available for nonprofits to use on projects designed to attract tourists to the city.
Both plans would give the city-owned Springfield Expo Center all the money accrued since WOW stopped accepting the tax funding — about $328,000 – to be used for improvements.
Three speakers addressed council, with two nonprofit representatives calling for the shared funding plan, and one member of the Citizens Sales Tax Oversight Committee recommending the revenues be used to free up general revenue funds.
In 1998, Springfield voters approved an increase in the hotel-motel tax for purposes that included making capital grants available for community nonprofits. A year later, the city entered into an agreement with WOW that directed a portion of that increase to the museum’s operational budget. When Morris asked to terminate the agreement last fall, council approved a special ordinance that authorized the WOW tax funds to be reallocated to entities that would have qualified to receive the tax revenues under the 1998 ballot language.
Among them is the Discovery Center of Springfield. Emily Fox, the organization’s executive director, said the children’s educational center – which currently does not receive city funding – would use revenues for projects to attract tourists. She said about half of the Discovery Center’s visitors come from at least 60 miles away. The center has made progress from a low of 32 percent drive-in traffic in 2009.
“Whenever I speak with peers from around the country, they are always astounded that we don’t receive support,” Fox said.
Fox said funds would be used to develop additional science-based programs and exhibits. Discovery Center has provided more than 200 exhibits and roughly 40 programs for youth since opening its doors in 1998, according to
DiscoveryCenter.org.
Springfield Regional Arts Council Director Leah Hamilton said council has a unique opportunity to support arts organizations that routinely drive people into the city. She said visitors to art performances typically spend $24.60 per person beyond the price of admission.
“You have a chance to balance fiscal responsibility with a wise investment,” Hamilton told council.
According to the bill that would divide revenues, funds would be allocated as part of a competitive process to select nonprofits focused on drawing tourism to the area. If the bill passes, a Hotel-Motel Tax Reallocation Committee would be established and charged with evaluating grant proposals and making recommendations of qualified nonprofits.
Brian Perdue, a member of Springfield’s Citizens Sales Tax Oversight Committee, spoke in favor of the proposal to reduce the city’s $16 million obligation connected to Jordan Valley Park and Mediacom Ice Park. He said he is among those who believe government at all levels should be looking to reduce debt and only fund core services.
“This would be the prudent thing to do,” Perdue said, adding that arts organizations should derive their revenue from donors or visitors.
According to Smith, based on an assumed 5 percent increase in hotel-motel tax revenues, the city’s subsidy on debt service for the downtown facilities would be reduced to $6.7 million through 2028 if the plan excluding the nonprofits were approved. Should the local organizations receive a 60 percent cut of the former WOW revenues, the city would still need to subsidize debt payments to the tune of $12.2 million during the next 16 years, she said.
Gamma Phi Beta plansSmith explained a bill that would establish a blighted area at 1137–1141 E. Elm St. with the purpose of offering tax abatement to developers for up to 100 percent of improvements for 10 years.
Missouri statutes provide incentives for developers that invest in improvements in blighted areas. The definition for blight includes property characteristics such as cracked foundations, outdated electrical wiring and water damage – all of which Smith said exist on the half-acre parcel that would be home to a new sorority house for Gamma Phi Beta.
Lantz Housing LLC is the developer, and Shawn Whitney, an attorney with Husch Blackwell LLP, was the only public speaker. The Planning and Zoning Commission, city staff and the Land Clearance Redevelopment Authority recommended the designation of blight.
If council determines the area meets the definition of blight, the developer could then submit a request for property tax abatement. Council is expected to vote on the measure Sept. 24.[[In-content Ad]]
