Council approves Brewery District incentives

Springfield City Council last night unanimously approved a 25-year tax abatement request that supports redevelopment plans near Springfield Brewing Co.

The Brewery District Lofts Redevelopment Corp. requested the abatement to support its plans to demolish 535 and 527 W. Walnut St. to build a three-story retail, office and banquet facility with 28 residential apartments on the top two floors. Plans also include renovation of the 521 W. McDaniel St. building into shell space for SBC production expansion and events, as well as remodeling the 507 W. Walnut St. building into a distillery.

The development group comprises Donald Babb, CEO of Citizens Memorial Healthcare in Bolivar, and his daughter, Christina Chanter, who was one of six who together purchased Springfield Brewing Co. in November 2011.

The council action freezes property taxes within the redevelopment area for 10 years and allows up to a 50 percent increase on the taxes due in years 11-25. According to a tax impact analysis required with the request, the city would collect $517,580 of additional property tax revenue during the abatement period, based on the proposed improvements that would be taxed after the first 10 years.

As part of the plan’s public hearing at council's Oct. 21 meeting, Councilman Craig Hosmer expressed concern that the city might be allowing developers to receive tax abatements too often and could be harming the districts property taxes are designed to support.

In an Oct. 29 interview with Springfield Business Journal, Hosmer said he had not yet decided whether he would vote for or against the Brewery District plans. Hosmer's concerns regarding the prevalence of tax abatements in recent years has led to a city review of the impact abatements have had on property taxes in redevelopment areas.

During the past two years, council has approved nearly a dozen redevelopment projects where tax abatement was requested.

The 9-0 vote last night came with no comments from council.