City sets boundaries for downtown redevelopment

At its Oct. 17 meeting, City Council approved the boundaries of the city’s Central Business District, a state designation that allows cities to capture a portion of state general sales taxes for revitalization efforts.

Officials now seek state approval for the district so that Springfield can join the Department of Economic Development’s Downtown Revitalization Preservation Program. The program would allow the city to capture half of the annual increases in state general sales tax revenues in the district. That money would be earmarked for public improvement projects such as infrastructure.

The approved area, roughly bordered by Main on the west, Water on the north, Kimbrough on the east and Elm on the south, is split east-to-west by Boonville and South avenues.

Springfield Economic Development Director Mary Lilly Smith said that if the city receives state approval, the money would be used in the west part of the district to further improvements around the College Station and Heer’s developments. The money from the eastern part of the district could be used to fund parking improvements, something that is sorely needed. But first, the city wants a study to show where and what types of parking would best meet those needs.

“The city doesn’t own a bunch of parking there like it does in the west, so it’s not yet clear where the best place is to spend our money,” Smith said.

Part of the application process includes pointing out “major initiatives” of private developers in the proposed district. The program requires a $5 million capital investment. Some that qualify are College Station, Heer’s Tower and The Discover Center.

The state program prohibits cities from using the recovered tax money for private projects, Smith said.

Now that the Central Business District boundaries have been approved, the next step is for a third party to declare blight in the redevelopment area, at which time a redevelopment plan can be adopted.

Smith was quick to point out, however, that the city does not intend to use the blight designation as an excuse to tear down existing structures. She said the designation of blight is required by the state to show where the assistance is needed for improvements.

“That’s always kind of a scary thing for folks – they don’t like to hear that their property is being blighted,” Smith said. “But in this case, it’s a legislative finding that has to be made in order for us to get the state funding. It doesn’t mean that anybody’s going to try to acquire their property or that anyone’s going to start dangerous building proceedings. It has nothing at all to do with that.”

Also on the agenda:

• It’s official: Bob Cumley will be the new Springfield city manager when Tom Finnie retires in April. The council adopted a memorandum of understanding at the meeting, setting Cumley’s salary and benefits. Cumley’s new salary of $147,630, effective when he takes the position, is slightly less than Finnie’s $153,752 pay. In addition to regular city employee vacation time, Cumley will receive 12 days of executive leave a year, which can be sold back to the city if unused.

Finnie announced Sept. 29 his intention to retire from the job after 15 years. The council voted to promote Cumley to the position in a closed session after the Oct. 3 meeting. Cumley has worked for the city since 1973, serving as assistant or deputy city manager since 1983.

• Council also approved resolutions allowing the city to apply for two grants and a revolving loan program from the Environmental Protection Agency. The money from the EPA grants, each worth up to $200,000, would be used for assessing areas contaminated by petroleum and hazardous waste.

The revolving loan program, meanwhile, would be used for the actual cleanup process.