Inclusion in TIF surprises local businessmen

Kirk Heyle's brown-and-white Tudor house at 309 S. National has been blighted by the city. So has the building he owns next door, which houses The Market Place Cafe.

Heyle, when informed of the action, was astonished.

"I spent a lot of dough on this place." He's been in real estate 27 years and has turned the old house into an office with desired commercial exposure on a busy street.

The rental house to the south, which he also owns, was deemed blighted as well.

Heyle said he's sure he probably received the certified mail notice last fall that advised him the city was creating a tax increment financing district to help develop the Jordan Valley Park project.

But he is a busy man and didn't pay much attention, he said.

Shawn Askinosie, an attorney, was also surprised that his old building at National and Walnut was considered "moderately blighted" by the city and that his property was in the TIF district. When told of the designation of his building, the attorney asked, "What does that mean, exactly?"

Askinosie, also a busy man like Heyle, with a high-profile criminal law practice, said he recalled getting a certified mail notice of the TIF commission hearing, but added that he didn't think his building was one of the properties being considered for the TIF. "I am in it, for sure?" he said.

As a lawyer, "I'm familiar with what a TIF is," Askinosie said. "There's only one or two people in Springfield that I've found that really understand TIF financing, and that's in the Yates law office." (Carl Yates is the city's local bond attorney.)

The TIF district and the blighting determination are done deals. City records show that the city properly notified the property owners by certified mail, published notices twice in a newspaper of general circulation, and held a hearing on Sept. 21, 2000, about creation of the TIF and the redevelopment projects within it. But Heyle wasn't at the hearing nor was Askinosie.

To determine blight, the city hired Rule & Company Inc. of Kansas City. The company used the legislative definition of blight: "An area which by reason of the predominance of defective or inadequate street layout, unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete plating, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals or welfare in its present condition and use."

Rule & Company prepared a separate property description and a blight analysis for each taxable parcel in the TIF district in the report that was more than 200 pages long.

Volume one of the report was an executive summary with general findings and was about 30 pages long.

The consultant rated each property after evaluating the seven components set out in the statute. Askinosie's property met three criteria inadequate street layout, improper subdivision or platting, and unsanitary or unsafe conditions.

Heyle's property was blighted because it has insufficient setback from National.

Ebbett's Field at 1027 E. Walnut was called "moderately blighted" because it had deteriorating improvements, and "needs immediate renovation," according to the study.

Mike Wilhoit's Apple Court Apartments at 1009-19 E. Walnut were considered "moderately blighted," as was the nationally known Walnut Street Inn bed and breakfast at 900 E. Walnut. Jay Key at 1106 E. St. Louis was determined to be blighted because it had "deteriorating improvements," and unsanitary or unsafe conditions. The building starts four feet from St. Louis Street. It's also considered "a hindrance to housing," according to the study.

Dr. Rose Buckner's house at 1159 E. Walnut, which she uses as an office, was blighted because of insufficient setback, insufficient parking and moderately deteriorating improvements, among other things.

Creation of a TIF district allows the city to take by power of eminent domain any property in the district.

By determining a public need to take private property, any government entity can take private property, if due process is observed and a fair price paid for the property.

If a property owner doesn't like the offer for his land, he can require the city to condemn the property and is entitled by law to a jury trial on the issue.

That's what happened to George and Lynn Thompson last year.