Jared Enterprises seeks blighted status on Country Club Center

Last edited 3:21 p.m., March 12, 2013

Commercial property management firm Jared Enterprises is calling for 4.1 acres at the southwest corner of Glenstone Avenue and Bennett Street to be declared blighted, paving the way for a community improvement district to be established and raise $1.16 million in sales taxes for improvements. The proposal was introduced at last night’s Springfield City Council meeting, where a public hearing was held on the measure.

Curtis Jared, president and chief operating officer of Jared Enterprises, said parking lot, walkway, facade and back-alleyway improvements are needed at the aging Country Club Center, which is home to the former Smillie’s Market and several businesses such as Springfield Leather Co. and Cosmic Fish. He noted the center is 100 percent occupied.

The proposed changes, including a cross-access road between Bennett and Portland streets, would affect the Country Club Center - comprising properties owned by six ownership groups - and the adjacent Consumer Credit Counseling Services. He said four of the owners have signed a petition of support for the proposal that would create the Country Club Center Community Improvement District and raise sales taxes by 1 cent on the dollar for up to 25 years or until the cost of improvements is covered.

Springfield Economic Development Director Mary Lilly Smith said CIDs are usually created to fund public improvements, not improve the properties of private ownership groups.

“This district is a little bit different than anything we’ve done in the past because they are requesting a determination of blight. The purpose for that is that state law allows for the use of CID revenue on private improvements if there is a declaration of blight,” Smith said, noting there are currently a dozen CID districts established in the city.

She said under state law, remediation of blight serves a public purpose, and if council agrees, the district could be established.

Blighted conditions that exist on the properties include obsolete platting, deteriorated walkways, uneven payment, a lack of cross-access easements and the presence of asbestos, according to Smith.   

She also said there were several instances across the state, mostly in the St. Louis area, where developers and property owners had sought and received blight declarations followed by new CIDs to fund improvements.

Mayor Bob Stephens questioned the need to use public funds to move forward with private improvement plans.

“I noticed on the way home that Glen Isle, The Plaza and even the Fremont Center on Battlefield seemed to, during the last two to four years, have undergone a complete face lift. Those [owners] didn’t come to us to establish a CID, correct?” Stephens asked Smith, who confirmed they had not. “They just absorb it as a cost of doing business.”

Stephens asked Smith if she thought other business and property owners would come forward with requests if council approved the Country Club CID.

“I think we would see some others come in,” Smith said. “If you look at some of our corridors like Glenstone and Kearney, for example, we have a lot of aging shopping centers, a lot of aging retail and some property owners may see this as an opportunity to revitalize their centers.”

Jared said improvements are supported by property owners on 90 percent of the land, but two, whom he described as “passive investors,” didn’t want to spend money on needed improvements, which is the reason for hatching the public funding plan. According to Smith, as long as at least 51 percent of the property owners within the proposed area sign a petition to establish the district, council can approve it.

Jared said after the meeting the CID option was explored because he couldn’t get all of the property owners to agree to pitch in on improvements to the center built in the 1950s.

“If I had the entire center, I could do the renovations over time, but I don’t,” said Jared, whose family once operated a Consumers market at the location.

He said while some people may be against private developers benefiting from increased sales taxes in community improvement districts, the districts have helped forward projects such as Academy Sports and Hy-Vee.

“No one is forced to shop at the center. We are the ones who feel confident this would work,” Jared said.

Funding for the changes would be financed privately, Smith said, with sales tax revenues reimbursing expenses should the district be established.

No members of the public spoke against the proposal, which has been recommended for approval by city staff. The bill is scheduled to receive a second reading and vote at council's March 25 meeting.