Letter to the Editor: SBJ article on TIF, project areas dismays readers

The Springfield Business Journal has been a long time resident and supporter of center city redevelopment. That's why many of us were surprised and dismayed to see the article in last week's issue on the proposed tax increment financing (TIF) that had numerous inaccuracies.

The TIF proposal is a key element to provide parking and other infrastructure for the new exposition center that will be another big step in the Jordan Valley Park redevelopment plan.

Probably the biggest blow of all though was the timing; it couldn't have been worse because the legislators made their decision about the TIF right after reading the article. The city and all of the supporters of the TIF didn't have time to respond to the article. While we can't say the article was responsible for the failure to get the TIF through the committee, we believe it contributed to its rejection.

The purpose of the TIF is to encourage development that eliminates or prevents urban blight as well as to stimulate the local economy through job creation and tax base growth and not just to deal with housing issues.

A quote characterized the TIF concept as |quot|dishonest.|quot| That is simply not true. The city's independent consultant stated in his report the proposed redevelopment area is a |quot|blighted area|quot| according to the definition found in the Missouri TIF statute.

The consultant states, |quot|Three-fourths of the individual properties in the area are blighted to a moderate or severe extent. The lack of growth in population, assessment and construction clearly indicated blight is present in the redevelopment area as a whole. The modest growth that has occurred has been on formerly blighted land and with public assistance.|quot|

It is also not true, as alleged, that City Council expanded the original proposed blighted area. The boundaries of the Jordan Valley TIF District are as originally presented by city staff at introductory meetings with representatives of the various taxing jurisdictions. There appears to be some confusion about the difference between a |quot|TIF District|quot| and a |quot|Redevelopment Project Area.|quot| The former contains the entire geographic area subject to redevelopment and the latter refers to the specific project areas that will be subject to the TIF tax provisions.

The redevelopment projects included in the TIF request to the state only include Phase 1 and Phase 1A of Jordan Valley Park and a commercial and retail area generally located in the southeast corner of the TIF District. Out of the 20 buildings or areas specifically cited in the article as subject to the TIF tax provisions, only 10 are actually affected and two others (the Woodruff Building and the Landmark Building) aren't even in the TIF District.

To include these other properties in the TIF provisions, the TIF Redevelopment Plan would have to be amended by approval of the TIF Commission (which includes the representatives of the taxing jurisdictions) and by the City Council.

There are several other statements in last week's article I would like to correct. As a point of clarification, the Jordan Valley Park local TIF is the only TIF in effect in the city.

The article also indicated the Springfield Public Schools consultant |quot|accused the city of misleading taxpayers,|quot| however, the consultant states in his report, |quot|The major portion of the loss is offset by increased state aid.|quot| The school's consultant also apparently made an error by including properties in his calculations that would not be included in the TIF tax provisions.

The state aid formula is very complicated and subject to change at any time by the State Legislature. No one can predict how it will be calculated two years from now let alone 23 years hence. It is also important to note that the potential |quot|lost revenue' to the School District refers to potential revenue existing tax revenue would remain the same. Furthermore, it is entirely possible, without redevelopment, the properties will decrease in value and result in less taxes to all of the affected taxing jurisdictions.

Maybe I'm mistaken, but I always thought good reporting meant checking the facts and verifying statements from other sources. That is what I have expected from the Springfield Business Journal for over 20 years and what I expect every week.

Bill Compere,

Executive Director,

Urban Districts Alliance Inc.

Springfield