At its Monday night meeting, Springfield City Council considered the creation of a Commercial Street community improvement district - an idea that brought impassioned discussion from area residents and business owners on both sides.
The district, according to city Economic Development Director Mary Lilly Smith, would allow retail businesses in the Commercial Street district to charge an additional 1/2-cent sales tax. Revenue from that tax - estimated to be about $200,000 over the first five years - would then go back to the district to fund maintenance and safety projects in the area.
More than half of the property owners in the area had to sign a petition to create the CID, Smith said, as well as half of the total assessed property value of the district. Smith said 53 of the 99 property owners signed the petition. Fourteen people spoke on the issue Monday.
Opinions among the residents and owners of the district were mixed. Urban Districts Alliance Director Rusty Worley said CIDs provide funding for essential services; he cited the success of similar districts in the center city area.
"CIDs are an important and common economic tool to help businesses provide supplemental services to keep their area clean, safe and friendly," Worley told council. "With the current strain on city finances, these districts are needed now more than ever."
He also said the tax is minimal; on a $10 purchase, for example, the extra cost would be a nickel.
Commercial Street business owner Shawn Askinosie of Askinosie Chocolate had a different view. He said that while he initially signed the petition supporting the district, he changed his mind and asked to remove his name when he saw the economy continue to deteriorate.
"I think the CID is a good idea, but I think it's a bad idea now," he said. "In this economy, it sends the wrong message. Whether you agree that these taxes add up, or whether it's a nominal amount, it sends the wrong message that the council says it's going to tax you."
Council could vote on the district at its June 15 meeting.[[In-content Ad]]
