Commercial Street redevelopment plan gets go-ahead

Council voted 8-0-1 to direct city staff to prepare a redevelopment plan and blight report for a 10-block section of Commercial Street between Grant and Texas streets. Councilwoman Mary Collette, a Commercial Street property owner, was the lone abstention.

The blight plan paves the way for the creation of a tax-increment financing district for the area, which would allow businesses to collect up to 50 percent of the increase in sales taxes resulting from redevelopment, along with 100 percent of the increase in property taxes, for up to 23 years.

City Redevelopment Director Mike MacPherson said the city would be able to use the captured tax money for infrastructure and other improvement projects, such as streetscapes. He added that taxing jurisdictions would continue to receive their current level of tax support.

Councilwoman Cynthia Rushefsky expressed concern over the declaration of blight in the area and the possible use of eminent domain there.

“Any time you get into the TIF process, the city does include eminent domain (as part of) its authority,” City Attorney Dan Wichmer said at the meeting. “But in this situation, I don’t think it would be used.”

The next step is to gauge public sentiment on the issue. MacPherson said a questionnaire will be sent to all property and business owners in the district, and public hearings will be scheduled over the coming months to show specific plans.

See SBJ’s June 25 issue for more on the June 18 City Council meeting.