Springfield Plaza Real Estate LLC officials are asking Springfield City Council to approve a $9.6 million tax increment financing district to reimburse infrastructure costs on a planned $78.5 million mixed-use development.
The developers - led by commercial real estate brokers Tom Rankin and Jeff Childs - intend to build the complex southwest of the Walmart Supercenter at 3520 W. Sunshine St., with new streets serving as entrances planned to connect to West Bypass and Sunshine.
Rankin said the plans have been in the works for two years and investors - which include the families of Springfield businessmen Charlie O’Reilly and Bill Darr - are now ready to move forward. He said the taxing district is critical to the development's feasibility.
“There is really no risk to the city of Springfield. We have all of the financial risk,” Rankin told council.
He said the developers have worked with city staff to ensure their plan - which would include the creation of a 1/2-cent community improvement district to speed up the reimbursements - conforms to the city’s comprehensive plan for economic development.
In making his pitch to council during the public hearing, Rankin said the length of the district would be limited to 18 years, five less than the maximum allowed under state statutes. Also, 25 percent of incremental tax increases on property would be permitted from the beginning, though 100 percent of improvements could be abated by law for up to 10 years.
Rankin said Springfield Plaza would be built in two phases, with 182,500 square feet of retail to come first on the north side of the property, followed by 250,000 square feet devoted to office space on the south side. Rankin noted no tenants have yet committed to the project.
“The west side of Springfield is underserved from a retail standpoint,” Rankin said.
Springfield-Greene County Library District Executive Director Regina Cooper was one of three speakers not tied to the development who spoke in favor of the plans.
“I generally do not get excited when I hear the word ‘TIF’ because our primary financing comes from property taxes, but I do live in the southwest and drive by this property frequently, and it looks pretty bad,” Cooper said, referring to the overgrown brush and weeds and evidence of illegal dumping on the property. “There’s not a lot of taxes coming from this property, so the possibility of something happening in the future is very positive.”
Residential developer Tom Kissee said the west and southwest sections of town are in need of more restaurant options, in particular.
“Many residents have no where to go eat that isn’t at least two to three miles away,” said Kissee, who has developed 1,300 residences in the area.
Speaking in opposition, Battlefield Mall General Manager Erik Fjeseth cautioned council on the use of TIFs.
“In its essence, TIFs are a scheme,” said Fjeseth, adding that Simon Properties did not seek a TIF district when it developed Battlefield Mall. “If the developer wants to develop the land, it is nice to have the developer pay for all the infrastructure. Generally, they do.”
Council is expected to vote on two bills related to the TIF proposal at its May 6 meeting.
This installment of Springfield Business Journal’s Architects & Engineers Project Report showcases 26 endeavors by area design and engineering professionals.
