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HomeMy WebLinkAboutOrd.3803.04-02-2007 BILL NO. 07-57 ORDINANCE NO.,JJV3 AN ORDINANCE APPROVING THE DEVELOPMENT PLAN SUBMITTED FOR THE REDEVELOPMENT OF THAT CERTAIN TRACT OF LAND IN THE CITY OF CAPE GIRARDEAU, MISSOURI, WHICH AREA HAS BEEN PREVIOUSLY FOUND TO BE IN NEED OF REDEVELOPMENT IN THE PUBLIC INTEREST, SAID TRACT BEING DESCRIBED IN EXHIBIT A; INCORPORATING BY REFERENCE CHAPTER 353, REVISED STATUTES OF MISSOURI 2000, AS AMENDED; AND CONTAINING A SEVERABILITY CLAUSE WHEREAS, on February 27, 2007, Greater Missouri Builders, Inc. (the "Developer"), a corporation organized duly existing and organized under the laws of the State of Missouri, submitted a Development Plan (the "Development Plan") for an area located at the corner of South Kingshighway and William Streets, depicted on Exhibit A attached hereto and incorporated herein ("Redevelopment Area") prepared by Development Dynamics in accordance with Chapter 353 of the Revised Statutes of Missouri, as amended ("Chapter 353"); and WHEREAS, the City Clerk, in accordance with Chapter 353 did cause to be published notice, in a paper of general circulation and in a paper authorized to publish legal notices, of the public hearing to be held by the City Council on March 5, 2007; and WHEREAS, a Tax Impact Analysis for Town Plaza Redevelopment Area was prepared and mailed to all affected taxing jurisdictions on February 23, 2007 in accordance with applicable provisions of Chapter 353; and WHEREAS, the City Council did conduct a public hearing on March 5, 2007, at which time all members of the public were given the opportunity to be heard; and WHEREAS, the City Council finds that the redevelopment of the Redevelopment Area by Developer in accordance with the Development Plan is in the public interest and serves a public purpose; and WHEREAS, pursuant to Ordinance No. the City Council of the City of Cape Girardeau, Missouri (the "City") found and designated the Redevelopment Area to be a blighted area within the meaning of and as defined in the Urban Redevelopment Corporations Law, Section 353.020, R.S.Mo.2000, as amended; and WHEREAS, Developer has complied with all the requirements imposed upon it by Chapter 353. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CAPE GIRARDEAU,MISSOURI AS FOLLOWS: Section 1. The suspension of the provisions of the Urban Redevelopment Ordinance relating to the approval process of the Development Plan is hereby ratified, affirmed and approved by the City Council. Section 2. It is hereby determined, found and declared that the Developer's certified mailing of the notice of the public hearing held on March 5, 2007,to those taxing districts affected by the Development Plan substantially conforms with the requirements contained in Section 28.10 of the Urban Redevelopment Ordinance and Chapter 353 and the City Council hereby ratifies, affirms and approves the same. Section 3. It is hereby determined, found and declared that the Development Plan, attached hereto as Exhibit B and incorporated herein by reference, submitted by the Greater Missouri Builders, Inc. for the redevelopment of the Redevelopment Area is necessary for the preservation of the public peace, property, health, safety, morals and welfare of the community and as such is approved in accordance with the provisions of this ordinance. Section 4. It is hereby determined, found and declared that there exists a necessity for granting tax abatement to the Developer in such amounts and for such term as is set forth in the Development Plan and that the granting of tax abatement is in the public interest and serves the public purposes expressed in Chapter 353. Section 5. The sections of this ordinance shall be severable. In the event any section of this ordinance is found by a court of competent jurisdiction to be invalid, the remaining sections of this ordinance are valid, unless the court finds the valid sections of this ordinance are so essentially and inseparably connected with, and so dependent upon, the void sections, that it cannot be presumed that the City Council would have enacted the valid sections without the void ones; or unless the court finds that the valid sections, standing alone, are incomplete and are incapable of being executed in accordance with the legislative intent. If any part of this ordinance regarding the rights of Developer are found invalid or unconstitutional, Developer shall thereafter at its election have the right to be released from the Development Agreement herein contained. Section 6. The provisions of Chapter 353 are incorporated herein by reference. Section 7. This ordinance shall be in full force and effect ten (10) days from and after its passage by the City Council. SSED AND APPROVED THIS�_DAY OF 200_1. a� udtson, Mayor : e O ib # s vxro is 8 Conrad, ity Clerk 2 __N'dU1M3HS — r - w _ rc LU i It _ . E Y t+ _ J K j LLJ CL i E �i -MCL � - -- _T C 7 E E O U Its 3.Lno - AyA1HJ1HS`J�:IN-' i EXHIBIT B DEVELOPMENT PLAN (On File With The City Clerk) 4 CAPE GIRARDEAU REDEVELOPMENT CORPORATION URBAN DEVELOPMENT PLAN SUBMITTED TO CITY OF CAPE GIRARDEAU, MISSOURI CAPE GIRARDEAU CITY COUNCIL FEBRUARY, 9 2007 CAPE GIRARDEAU REDEVELOPMENT CORPORATION URBAN DEVELOPMENT PLAN I. INTRODUCTION II. OVERVIEW OF URBAN REDEVELOPMENT III. FINDING THAT THE REDEVELOPMENT AREA IS BLIGHTED W. NECESSARY FINDINGS 1. DEVELOPMENT PLAN OBJECTIVES V. DEVELOPMENT PLAN 1. LEGAL DESCRIPTION 2. DESCRIPTION OF THE PROJECT 3. PROPERTY FOR PUBLIC AGENCIES 4. ZONING CHANGES 5. STREET CHANGES 6. DWELLING ACCOMMODATIONS 7. HOUSING AND BUSINESS RELOCATION 8. CHANGES OUTSIDE THE REDEVELOPMENT AREA 9. UTILITY CHANGES 10. FINANCING 11. MANAGEMENT 12. EMINENT DOMAIN 13. EMINENT DOMAIN BY THE CITY 14. ASSIGNMENT OF DEVELOPMENT PLAN 15. ECONOMIC IMPACT ON TAX BASE 16. RELOCATION PLAN 17. PROPOSED TIMING 18. COMPREHENSIVE LAND USE PLAN APPENDICES 1. LEGAL DESCRIPTION OF THE TOWN PLAZA REDEVELOPMENT AREA 2. TOWN PLAZA REDEVELOPMENT AREA PLANNING REPORT AND ANALYSIS (BLIGHTING STUDY) 3. TOWN PLAZA REDEVELOPMENT AREA TAX IMPACT STATEMENT I. INTRODUCTION The following is a plan prepared by CAPE GIRARDEAU REDEVELOPMENT CORPORATION(the"Developer'), for a commercial development located at the intersection of Kingshighway and William Streets, 2136 William Street, in the City of Cape Girardeau, Missouri (the "Town Plaza Redevelopment Area" or "Redevelopment Area"). A legal description of the Redevelopment Area is contained herein as Appendix 1. Maps of the Redevelopment Area are included in the Planning Report and Analysis. This Development Plan proposes to acquire all property within the designated Redevelopment Area (as depicted in the Town Plaza Redevelopment Area Planning Report and Analysis in Appendix 1) in preparation for the future redevelopment of Redevelopment Area (the "Development Project"). It is anticipated that the Development Project will serve as an incentive for commercial growth in the area, and for private investment, retail growth, and expansion of small businesses. The City reserves the right to expand the boundaries of the Redevelopment Area at some point in the future if market conditions indicate a need or if blighting factors begin to impact areas outside the boundary currently under consideration. H. OVERVIEW OF URBAN REDEVELOPMENT In order to promote the redevelopment of a declining area, or to induce new activity in an area that has been lacking in growth and development, the State of Missouri has provided statutory tools to counties and municipalities to assist private, and initiate public, investment. One such tool is the Urban Redevelopment Corporation Law, Chapter 353 of the Revised Statutes of Missouri 2000, as amended("Chapter 353"). Chapter 353 allows cities and counties to (1) identify and designate redevelopment areas that qualify as"blighted areas"; (2) adopt a Development Plan that designates the redevelopment area and states the objectives to be attained and the program to be undertaken; (3) approve a redevelopment project(s) for implementation of the Development Plan; and (4) utilize the tools set forth under Chapter 353 to assist in reducing or eliminating those conditions that cause the area to qualify as a redevelopment area. Generally, Chapter 353 allows municipalities to foster economic and physical improvements in a redevelopment or project area and to enhance the tax base of all taxing districts that levy taxes in such area. Within a redevelopment area, a municipality may grant a developer the power of eminent domain to provide necessary property acquisition for the implementation of a Development Plan and redevelopment project. HI. FINDING THAT REDEVELOPMENT AREA IS A BLIGHTED AREA A blighting study entitled "Town Plaza Redevelopment Area Planning Report and Analysis Regarding Designation of the Area as a Chapter 353 Redevelopment Area in Cape Girardeau, Missouri"prepared by Development Dynamics, LLC, is attached hereto as Appendix 2. IV. NECESSARY FINDINGS 1. Development Plan Obiectives a. To enhance the public health, safety, and welfare of the community by improving the infrastructure, curing blighting conditions, and encouraging other public improvements necessary for insuring the area's stability and existing and future redevelopment consistent with this Development Plan; b. To increase the level and perception of safety and revitalization in the Redevelopment Area which will in turn encourage an influx of new businesses and residents to the City; c. To upgrade and refurbish utilities, and other infrastructure facilities serving the Redevelopment Area; d. To enhance the tax base by inducing development of the Redevelopment Area to its highest and best use, benefit taxing districts and encourage private investment in surrounding areas; e. To promote the health, safety, order, convenience, prosperity and the general welfare, as well as efficiency and economy in the process of development; f. Increase property values of the Redevelopment Area and surrounding properties; g. To provide development/business opportunities in the Redevelopment Area and surrounding areas; h. To stimulate construction and permanent employment opportunities and increased demand for services in the Redevelopment Area; and i. To serve as a catalyst for redevelopment in the City. V. DEVELOPMENT PLAN The Developer proposes to acquire the property in the Redevelopment Area which is currently vacant in preparation for the future redevelopment of the Area. The Development Project incorporates and will satisfy the goals, objectives, and other criteria as set forth in this Development Plan. 1. Legal Description. A legal description of the Redevelopment Area is attached hereto as Appendix 1. 2. Description of the Project. The proposed Development Project will be to acquire the land and redevelop the property by demolishing vehicle servicing of the former Sears facility, the removal of an outside storage area, and then converting the Sears facility into a 40,000 square foot call center and 25,000 square foot of additional retail space. 3. Property for Public Agencies. Property is not anticipated to be conveyed to a public agency. 4. Zoning Changes. Property within the Redevelopment Area is zone commercial and will not require rezoning. 5. Street Changes. No anticipated street changes will be required. 6. Dwelling accommodations. The Redevelopment Area contains a single commercial building (the former Sears Site) which has been vacant over two years. There are no existing dwelling accommodations in the Redevelopment Area. 7. Housing and Business Relocation. The sole structure located within the Redevelopment Area is vacant and, therefore, no residents or businesses will be relocated. 8. Changes Outside the Redevelopment Area. There are no immediate changes anticipated outside Redevelopment Area. 9. Utility Changes. No new utility lines are proposed for the installation in the Redevelopment Area. 10. Financing. Financing for the project will be provided through private lending sources. 11. Management. The following persons shall be active in or associated with the management of the Development Project during the period of at least one year from the date of approval of the Development Plan: Mr. Scott Campbell Greater Missouri Builders 1551 Wall Street Suite#220 St. Charles, Missouri 63303 (636)946-1341 Mr. Kent Evans Greater Missouri Builders 1551 Wall Street Suite#220 St. Charles, Missouri 63303 (636) 946-1341 12. Eminent Domain. The Developer is not requested the power of eminent domain. 13. Eminent Domain by the City. The Developer is not requesting that the City condemn any property in the Redevelopment Area. 14. Assignment of Development Plan. The Developer reserves the right to assign its rights under the Development Plan to any third party; provided, however, that the Developer shall not assign its rights under the Development Plan to any third party prior to completion of the Project without the prior written consent of the City. e 15. Economic Impact on Tax Base. A detailed tax impact statement is attached hereto as Appendix 3. 16. Relocation Plan. The Redevelopment Area is currently vacant; therefore, no residents or business will be displaced or relocated as a result of this Development Plan. 17. Proposed Timing. It is estimated that implementation of the Development Project will be completed within one (1) year from the date of execution of a redevelopment agreement for completion of such project, as contemplated by this Development Plan. 18. Comprehensive/Land Use Plan. The proposed land uses, zoning and proposed Development Plan are appropriate and consistent with local objectives identified by the 1987 Comprehensive/Land Use Plan of the City of Cape Girardeau, Missouri and the Vision 2020 A Strategic Plan for Cape Girardeau's Future. i APPENDIX LEGAL DESCRIPTION OF THE TOWN PLAZA REDEVELOPMENT AREA Description —4.453 Acre Tract A PART OF OUTLOT 57, UNITED STATES PRIVATE SURVEY NO. 2199, TOWNSHIP 30 NORTH, RANGE 13 EAST OF THE FIFTH PRINCIPAL MERIDIAN, CITY AND COUNTY OF CAPE GIRARDEAU, STATE OF MISSOURI, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: Commencing at a 1/2" iron pin (found) at the northwest corner of Outlot 57; Thence S 830 07 ' 18" E, 461 . 54 feet to a spike (found) at the northwest corner of a tract of land recorded in Book No. 294 at Page No. 891 of the land records of the County Recorder ' s Office; Thence S 060 26 ' 06" W, 121 . 41 feet along the west line of said tract to the southwest corner thereof and being the TRUE POINT OF BEGINNING; Thence S 830 37 ' 49" E, 53 . 78 feet along the south line of the aforesaid tract recorded in Book 294 at Page 891 to a 1/2" iron pin (set) ; Thence S 000 07 ' 49" E, 49 . 52 feet to a 1/2" iron pin (set) ; Thence S 830 37 ' 49" E, 500 .43 feet to a 1/2" iron pin (set) on the west right of way line of Sheridan Drive; Thence S 050 00 ' 27" W, 181 . 97 feet along said west right of way line; Thence continuing along said west right of way, S 000 01 ' 14" E, 43 . 68 feet to a 1/2" iron pin (found) at the northeast corner of a tract of land recorded in Book No. 290 at Page No. 282 ; Thence along the north and west lines of said tract the following courses and distances, N 840 57 ' 14" W, 171 . 13 feet; Thence S 50° 59 ' 49" W, 21 . 56 feet; Thence S 06° 56 ' 52" W, 142 . 96 feet to a chiseled "+" (found) on the north right of way line of William Street; Thence along the north right of way line the following courses and distances, N 84° 29 ' 22" W, 277 . 34 feet to a 1/2" iron pin (set) ; Thence N 00° 07 ' 49" W, 15 . 07 feet to a 1/2" iron pin (set) ; Thence N 84° 29 ' 22" W, 109. 76 feet; Thence leaving said north right of way line, N 060 18 ' 37" E, 186 . 08 feet; Thence N 080 10 ' 46" E, 241 . 64 feet to the point of beginning, containing 4 .453 acres more or less . APPENDIX 2 TOWN PLAZA REDEVELOPMENT AREA BLIGHTING STUDY i 1 J T TOWN PLAZA REDEVELOPMENT AREA PLANNING REPORT AND ANALYSIS REGARDING DESIGNATION OF THE AREA AS A CHAPTER 353 REDEVELOPMENT AREA IN CAPE GIRARDEAU , MISSOURI MARCH 15 , 2007 Q w TOWN PLAZA a � REDEVELOPMENT AREA Q z C I TY OF CAPE G I R A R D E A U , MISSRI J w a2 a zo 3J ow � w w D PAGE E OF CONTENTS: SECTION ONE: BRIEF COMMUNITY HISTORY 2 SECTION TWO: PROJECT LOCATION AND BACK- 3 GROUND SECTION THREE: PROVISIONS OF CHAPTER 3S3 5 SECTION FOUR: EXISTING SITE CONDITIONS 6 AND EVALUATION OF BLIGHT- ING FACTORS SECTION FIVE: REPORT SUMMARY AND FIND- 8 INGS APPENDIX A: PHOTOGRAPHIC APPENDIX APPENDIX B: CHAPTER 353 URBAN REDE- VELOP MENT CORPORATION LAW APPENDIX C: REDEVELOPMENT AREA DEMO- GRAPHICS 1 SECTION ONE: BRIEF COMMUNITY HISTORY I Page The City of Cape Girardeau is located ap- goods on the river, which expedited proximately 100 miles south of St. Louis , growth. Shops were opened, hotels nestled between the Mississippi River and went up along the river and Cape Interstate-55. Girardeau moved from being a village The Mississippi River has always played to a city. When the railroads were com- an integral part in Cape Girardeau Is history. pleted, it is said the city's population Long before Europeans settled here, this doubled in just a few months. Although Cape Girardeau area was home to many tribes of Native Ironically,the river that had been so still relies on manufacturing Americans, including the Ozark Bluff beneficial in bringing settlers to the and agriculture for a large Dwellers and the Mississippian tribe. The area, also devastated the city. Every number of jobs,the area is lush grasses,mild-to-moderate climate,and few years the Mississippi River would transforming itself into a easy river accessibility proved the perfect ravage the downtown area, wiping out more service-oriented and place to live. businesses and bankrupting the proprie- information-based In the 1730's, a Frenchman named Jean tors. In order for the city to survive, workforce.Changes in Baptiste Girardot, for whom our city is something had to be done to tame the economics and technology named, established a trading post at a rock river. In 1956 work began on a flood have required Cape promontory jutting from the west bank of wall that would protect the community. Girardeau's citizens to re- the Mississippi River. This site became It was completed in 1964 at a cost of evaluate its place in known as Cape Rock. However, Girardot $4 million and has saved the historic was a trader, not a settler, and by the mid- downtown area many times over, par- Missouri and the world. the 1700's Girardot had moved on. ticularly during the historic "Flood of 1993" when the river crested at 48.49 In 1793, the Spanish Government gave feet,nearly 17 feet above flood stage. Frenchman Louis Lorimier a land grant to establish another trading post near the Today, Cape Girardeau has a popula- river, a few miles south of the site previ- tion of more than people and is ously established by Girardot. Even though the commercial,educational, and medi- Lorimier is considered to be our commu- nity's founder, he was not afforded the region. Although Cape Girardeau is honor of being its namesake. Lorimier did known for its small town atmosphere try by naming his trading post "Lorimont," and hospitality, it is estimated that as but the name "Girardot" was already many as 90,000 people come into the widely associated with the area, and over city daily to work, shop, attend classes the course of time, Girardot became Cape at Southeast Missouri State University, Girardeau. Lorimiees trading post and or receive medical care from the two home, "The Red House," was located near full-service hospitals. the site now occupied by Old St. Vincent's Church. The house stood until 1850 when it was destroyed by a tomado. At the time of the Lewis and Clark Ex- pedition in 1803,Cape Girardeau boasted a population of 1,111. Early in 1806 the town of Cape Girardeau was laid out in lots. A petition for incorporation was pre- sented in 1808. Growth at fust was slow and settlement of the city did not come eas- ily. However, the age of steamboats al- lowed easy movement of manufactured MikaWN PLAZA REDEVELOPMENT AREA Papa SECTION TWO: PROJECT LOCATION AND BACKGROUND Project Location evaluating the potential redevelopment Financial impediments and barriers to of Town Plaza and proposes the fol- new development must be overcome if Town Plaza is located on the comer of lowing: development and rehabilitation is to Kingshighway and William Streets in occur. These factors combined, often the City of Cape Girardeau, Cape 1. Demolition of certain structures cause an area to exhibit blighting ton- Girardeau County, Missouri. The within the Redevelopment Area, ditions, which prevent or stall redevel- property is a single tax parcel and con- involving the removal of an out- opment. Through the Development sists of a retail strip center, several out side storage area and the former Plan, a Redevelopment Area is desig- buildings, and a stand alone facility, vehicle servicing structure. nated and provides an indication cer- fonnerly occupied by Sears. tain actions are necessary to facilitate 2. Conversion of former Sears build- business attraction and redevelopment The proposed Town Plaza Redevelop- ing within the Redevelopment to a location. ment Area (the "Redevelopment Area into two components: Area') covers a portion of the Town If market condition dictate, the City Plaza Center bounded by Plaza Way, • a 40,000 square-foot call center to may evaluate the need to expand the and William, Merriwether, and Sheri- be operated by NARS,and Redevelopment Area boundary to in- dan Streets(see Figure 1). clude other properties being impacted • 25,000 sq. ft. of additional retail by blighting conditions. Background opportunity space. Redevelopment Objectives Town Plaza Center can best be defined The remaining 130,000 sq. ft. of retail as a shopping center. The term space in the Town Plaza Center would GMB estimates that rental fees gener- "shopping center"has evolved from its be unaffected by the modifications to ated from property within the Redevel- early use. In general, the term is used the Redevelopment Area. opment Area will be able to finance to describe a group of retail and other the interior improvements and reha- commercial establishments that is Development Plan Objectives bilitation costs within the Redevelop- planned, developed, owned, and man- ment Area. However, approximately aged as a single property, with on-site The purpose of this Planning Report $3.5 million to$4 million of additional parking provided. The International and Analysis is to supplement the De- funding will be required for the com- Council of Shopping Centers (ICSC) velopment Plan and addresses the pletion of the overall project. defined eight principal types of shop- evaluative factors that determine if the ping centers (regional center, super- Redevelopment Area meets the blight- Public assistance is necessary to help regional center, neighborhood center, ing criteria for designation under recover such costs as facade improve- community center, power center, Chapter 353 of the Revised Missouri ments, parking facilities, roof recon- themelfestival center,outlet center,and Statutes of the State of Missouri,which struction and HVAC installation. The lifestyle center). It is not always possi- is cited as '"She Urban Redevelopment HVAC improvements, in particular, ble to precisely classify each center Corporations Law" most often simply are necessary to convert structures in because some are hybrids, combining referred to as"Chapter 353". the Redevelopment Area from single- elements from two or more basic cen- use retail space to a NARS call center ten. The Town Plaza is a combination The Development Plan is a required and multiple additional retail outlets. of a neighborhood center and a com- element of Chapter 353 in order to aid munity center, designed to provide the redevelopment of underutilized GMB proposes the use of Chapter 353 convenience shopping for the day-to- commercial sites within a Redevelop- tax abatement and other financing day needs of consumers within the ment Area. The Development Plan mechanisms to assist in the remedia- general immediate neighborhood, yet serves as mechanism to facilitate the tion of blight. In the event the antici- has elements with broader appeal. development of underutilized proper- pated total project costs are less than ties, enhance transportation improve- anticipated, the value of public assis- Due to ongoing vacancy, Greater Mis- ment designs and access, and encour- tance required would be reduced ac- souri Builders ("GMB'), as owner of age the highest and best use of prop- cordingly. the Town Plaza Center, has been erty within a Redevelopment Area. IOWN PLAZA REDEVELOPMENT AREA Pap FIGURE 1: SITE MAP / Chapter 353"Radevalopment Area" Community Improvement District Area i 474�1 172DZ2 : ZC 6 I CIL A f 10 4 MERRIWETHER o a i TOWN PLAZA i SHOPPING CENTER c� z 25 23 VVILLNM ST -HI W61kY K To provide the necessary assistance to City Development Plans 3. Support the improvement area the Redevelopment Area, GMB re- infrastructure;and quests 1000/9 real property tax abate- The City of Cape Girardeau has sev- ment on new improvements for ten eral development plans that overlap 4. Encourage the revitalization and years, and 501/6 real property tax the Project Area. These include the improvement of older business abatement on new improvements for `1987 Cape Girardeau Comprehen- districts. an additional fifteen years. In addi- sive Plan" and "Vision 2020 A Stra- tion,GMB also requests abatement on Legit Plan for Cape Girardeau's Fu- 50016 of the existing building improve- ture", dated August 7, 2000. While ment value for the frill 25 years. The each of these plans address commu- projected tax savings would then be pity growth issues, due to their age reinvested,by GMB, to cover eligible and/or particular focus, they do not project costs incurred in the reduction specifically address community eco- of blighting factors present in the Re- nomic development issues directly development Area. related to the Project Area; however several community objectives can be This Planning Report and Analysis is discerned in reading the reports, in- submitted to document certain site cluding a community desire to: factors that have affected the Redevel- opment Area's development patten 1. Strengthen neighborhoods by and continue to serve as a deterrent to addressing issues of urban blight; redevelopment, as envisioned by the City. 2. Develop plans for business re- cruitment and retention; LTOWN PLAZA REDEVELOPMENT AREA Pages FIGURE 2: TOWN CENTER OVERALL ASSESSED VALUES - � •GI '1: 11 1' 11': 11 .111 7TT 2136 W llian Street Madret Valle Assessed Valuation Lad Inproarats Tdal Lad Irrpoerats Total Tom Rem Carter Oieall $ 1,271,729 $ 3,316,921 $ 4,533,650 $ 378,309 $ 1,074,361 $ 1,452690 a Tom)Ram(OnM $ 826,676 $ 2,242540 $ 3,083,216 $ 271,634 $ 7266379 $ 998,013 Ta Es Pad $ 15,411 $ 41,319 $ 56,620 h Rxbelo mat Pres(Clay)` $ 398,063 $ 1,074,381 $ 1,470,434 $ 106,675 $ 348,002 $ 454,677 Tates Pad I $ 602 $ 19,746 $ 25,798 $ 82418 'rheoAral tad is assessed as a sige p3ud With repred akmknda pemdWkeasdNarrVxdttu#ahsdta.iiurrelia d1airedhmheCxe0admu co^Asseqqv. FIGURE 3: ASSESSED VALUE GROWTH COMPARISON ComparisonAssessed Valuation Growth Town Plaza Redevelopment City of Cape Cape Girardeau Year Overall EAV Area Girardeau Count 2002 $ 1,452,690 0.00% 1.35% 10.93% 2003 $ 1,452,690 0.00% 1.65% -0.55% 2004 $ 1,452,690 0.00% 1.67% 2.62% 2005 $ 1,452,690 0.00% 5.27% 2.45% 2006 $ 1,452,690 0.00% 5.55% 6.51% Assessed Valuation Growth Comparison 2002-2006 15.00% 10.00% - 5.00% 0.00% --� 2002 2003 2004 2005 2006 -5.00% -- -�Redevelopment Area t City of Cape Girardeau —+—Cape Girardeau County F)bLAZA REDEVELOPMENT AREA J pap SECTION THREE: PROVISIONS OF CHAPTER 353 Subsequent sections of this Planning and Analysis Report The statute does, however, require that certain blighting discuss whether physical characteristics and conditions are factors be present in the Redevelopment Area. These are present in the Redevelopment Area, in the context of re- defined in the "Definitions" section of the statue under quirements in the Chapter 353 statute and similar provi- subsection(2)of 353.020. As in the excerpt from the stat- sions contained in the City's code of ordinances as they ute, there are a variety of blighting factors that, if present, relate to a blighting designation. contribute to rendering a redevelopment area an economic or social liability and create other conditions that are char- Therefore, it is helpful to review several key provisions of acteristic of a blighted area. The purpose of the subse- Chapter 353 found in the section of the Chapter entitled quent section of this report will be to review and evaluate "Definitions" 353.020 RSMo.). The first of these is the whether existing conditions in the redevelopment area help term"Area". The statutory definition is as follows: determine if the redevelopment area is in fact a `Blighted Area"according to Chapter 353. 1). "Redevelopment Area", that portion of the city which the legislative authority of such city has found or shall find to be blighted so that the clearance, replanning, rehabilita- tion, or reconstruction thereof is necessary to effectuate the purposes of this law. Any such Redevelopment Area may include buildings or improvements not in themselves blighted, and any real property, whether improved or unimproved, the inclusion of which is deemed necessary for the effective clearance, replanning, reconstruction or rehabilitation of the area of which such buildings, improvements or real property form a part. To qualify as a Redevelopment Area, the territory to be designated must display blighting characteristics that also allow it to be defined as a `Blighted area". The stat- ute defines a`Blighted area"as follows: 2) "Blighted area", that portion of the city within which the legislative authority of such city determines that by reason of age, obsolescence, inadequate or outmoded de- sign or physical deterioration, have become economic and social liabilities, and that such conditions are conducive to ill health,transmission of disease,crime or inability to pay reasonable taxes. The entire text of Chapter 353 is included in Appendix B in this Planning Report and Analysis. As discussed in the definition of a Blighted area, the Mis- souri Legislature appears to have recognized, when the statute was adopted, that in defining a Redevelopment Area, it is important to have "effective...replanning" of the designated properties. It is also notable that the statute specifically states that not all of the property included must be blighted in order to cant' out the purposes of Chapter 353. TOWN PLAZA REDEVELOPMENT AREA Page 7 SECTION FOUR : EXISTING CONDITIONS AND EVALUATION OF BLIGHTING FACTORS The blighting factors and related conditions present in the internal transportation access to the property presents con- Town Plaza Redevelopment Area are discussed below. flicts for customers and drivers based upon a site evaluation, conducted by Development Dynamics, LLC on November 15, 2006,and do not reflect Pavement surfaces within the Redevelopment Area are conditions or events subsequent to that date. cracking,crumbling,and show signs of disuse. Site data utilized in compiling this report was supple- The Redevelopment Area site layout was designed for a mented by information provided by others including; the specific use and is, therefore, outmoded. In order for new Cape Girardeau city staff, the Cape Girardeau County As- development to occur, reconfiguration of the building and sessor's office, the Cape Area Magnet Center, GMB, and reconstruction of certain infrastructure must take place. the Cape Girardeau Chamber of Commerce. Additional input from public meetings may result in revisions to this 3. Physical Deterioration, Defective or Inadequate report,as a result of public comment. Street Layout 1. Age The extent to which existing improvements within the Re- development Area show signs of deterioration are an indi- According to data provided by GMB, existing structures calor of the area's stability and market value. within the proposed Redevelopment Area are in excess of 25 years old. Access to modern infrastructure is in place, The Redevelopment Area exhibits various levels of dete- but the age of certain infrastructure is evident from condi- rioration in its facilities and infrastructure. tions where pavement surfaces are deteriorated, cracked, and becoming unsafe. Portions of the Redevelopment A. The access configuration within and surrounding the Area infrastructure display evidence of major to signifi- Redevelopment Area is a primary cause for the lack of cant deterioration. Because of age and visible condition, growth and development. William Street, which certain elements of the existing infrastructure does not serves the City as an arterial road,has hindered ingress meet current development standards and, possibly, city and egress, a condition that impacts the Redevelop- codes. ment Area. This condition was not an issue in the past, however, the condition limits reuse of the build- 2. Obsolescence and Inadequate or Outmoded Design ing in terms of future development. Without im- proved safety measures and access being addressed, The ability of structures in the Redevelopment Area to there is limited ability for property redevelopment. continue as a viable uses,based upon the manner in which it was built and situated on the property, and the land use B. In addition, the Redevelopment Area suffers from a itself, is relevant in determining if there is longer-term defective street layout. There are defective access value in the real estate market. This is often referred to as points off William Street and interior traffic circula- obsolescence and this factor is cited in every Missouri re- tion within the Redevelopment Area is unsafe for pe- development statute. Obsolescence is often the result of destrians and vehicles. inadequate or outmoded design of the improvements. This can be the result of a design that was initially adequate but C. The types of existing physical deterioration conditions has become out-moded as a result of changes in buyer present throughout the Redevelopment Area include, tastes, current city codes, current city design standards, but are not limited to: and restrictions on the particular structures or land uses. 1. Deteriorated pavement surfaces in various states of A substantial amount of property within the Redevelop- disrepair; ment Area is in a state of disuse. The structures within the Redevelopment Area have been vacant for over two years. 2• Fencing and other site appurtenances in various The structures are in deteriorated conditions. External and states of disrepair; IOWN PLAZA REDEVELOPMENT AREA J Pooa EVALUATION OF BLIGHTING FACTORS " CONTINUED " 3. Pedestrian awnings are outmoded, cracked, and egress serve as a menace to the public health and safety, peeling paint which show signs of disrepair; as is the lack of modem access design. Each present ex- amples of social liability conditions. Inappropriate traffic 4. Erosion of open storm waterways and regular circulation patterns present within the Redevelopment standing water are present throughout the Rede- Area create an additional menace and safety concem. velopment Area; Further, access conflicts to the Redevelopment Area can 5. Miscellaneous debris scattered across the Redevel- hamper the delivery of emergency services. This lack of opment Area; adequate access to the Redevelopment Area is considered a menace to public safety. 6. Fencing around outside storage and other site ap- purtenances are in disrepair with unkempt materi- The entirety of the aforementioned conditions support a als;and finding the Redevelopment Area, as a whole, constitutes a menace to public health, safety, morals, and welfare if 7. Conditions, where improper dumping and trash existing conditions remain. accumulation have occurred, can attract vermin, mosquitoes,and create unhealthy conditions. These existing conditions are likely to worsen over time. 4. Economic Underutilization Another indication that blighting conditions present in the Redevelopment Area are negatively impacting the prop- erty is found by reviewing development activity. Similarly situated properties in other areas of the commu- nity have developed, created jobs, increased tax revenue and assessed valuations. The Redevelopment Area has seen limited development activity. The Redevelopment Area does not generate reasonable taxes, based upon its location at the intersection of William and Kingshighway Streets. This type of location should be able to entice new commercial development, as identified in the City's comprehensive plan as the highest and best use (see Fig- ure 4). Additionally, vacancies in the general area indi- cate the Redevelopment Area is impacting neighboring properties,as evidenced in Appendix A. 5. Conditions That are Conducive to Ill Health, Transmission of Disease, Crime, Social Liability, and Other Factors Affecting Development The Redevelopment Area has a number of conditions which evidence its declining condition, including: place- ment of trash, debris, weeds, and other conditions that affect development. The deteriorated condition of storm water improvements within the Redevelopment Area,along with ingress and rTOWN PLAZA REDEVELOPMENT AREA J pag°9 SECTION FIVE: REPORT SUMMARY AND FINDINGS Summary 8. Unless a program of redevelopment can be devised to Evaluation of the Redevelopment Area's conditions found eliminate existing blighting influences in the Rede- adequate blighting factors present which qualify the prop- velopment Area, further physical decline is likely and erty as blighted and satisfy the blight definition require- investment in the type and style of development envi- ments, as outlined in Chapter 353 and similar provisions sioned in City plans as appropriate and economically in the City's code of ordinances. feasible will not occur. Findings 9. The failure to clear, re-plan, rehabilitate, reconstruct, or redevelop the Redevelopment Area will result in 1. Blighting conditions present in the Redevelopment progressive deterioration, causes wasteful expendi- Area, and other factors, have acted as constraints and ture of public funds for public services, and infra- economic impediments to development. These condi- structure. tions, when taken as a whole, meet the principal re- quirements for a "blighted" designation. However, 10. The combination of existing conditions and economic additional blighting factors exist in the Redevelop- factors present in the Redevelopment Area contribute ment Area as summarized below: to make in the property an economic and social li- ability to the City of Cape Girardeau and other taxing 2. The predominance of negative conditions in the Re- jurisdictions in its present condition and use. development Area is evidence that requirements to meet the definition of blight are satisfied. 11. It is in the public interest to encourage and provide for the removal of blight, as allowed under the Re- 3. The Redevelopment Area site layout and building vised Statutes of Missouri,Chapter 353. structures represent an ineffective, inadequate, and outmoded design, the existence of which results in Based upon Development Dynamics' evaluation of the progressive deterioration,causes wasteful expenditure Redevelopment Area, using typical standards and meas- of public fiords for providing public services to the urements under the Missouri redevelopment statutes, the Redevelopment Area. findings clearly indicate the Redevelopment Area, when taken as a whole, exhibits the characteristics for designa- 4. The clearance, re-planning, rehabilitation, reconstruc- tion as a blighted area. tion, and redevelopment of the Redevelopment Area and structures, on a substantial scale, is necessary for The Redevelopment Area,when taken as a whole,has not the removal of blight and for the public welfare. been subject to growth and development through private or public investment as indicated by a hindered growth in 5. The Redevelopment Area's infrastructure displays assessed valuation and tax revenue. It is not anticipated signs of obsolescence, depreciation of physical main- the Redevelopment Area would be developed or redevel- tenance,and deterioration. oped without the adoption of a Development Plan. Fac- tors contributing to this lack of private investment for 6. Improper subdivision or obsolete platting within the redevelopment include: Redevelopment Area has impaired economic values, impaired investment, reduced income, and cone- A. Costs to improve traffic circulation and improve quentially created an inability to pay reasonable taxes. access to and between the area in a manner to pro- Such condition constitute a menace to the health, mote unified development; safety, morals and welfare of the citizens of the City and result in an economic liability. B. Costs to reconfigure the Sears site to allow for re- use and adaptation to modem development stan- 7. Certain portions of the Redevelopment Area contain dards; miscellaneous discarded debris. Overall,the situation creates conditions that are conducive to ill health, C. Site improvement costs required to install or up- transmission of disease,crime,and social liability. grade certain inGastructure; (TOWN PLAZA REDEVELOPMENT AREA Pq5'10 REPORT SUMMARY AND FINDINGS "CONTINUED" D. Traffic access and circulation pattern improvements Thus, the entirety of information collected,reviewed, and to the Redevelopment Area;and analyzed in the course of preparation of this Planning Analysis and Report, if taken as a whole, results in the E. Storm water improvement measures required if the proposed Redevelopment Area satisfying the standards as Redevelopment Area is to be used in accordance a`Blighted area",as defined in Chapter 353. with its economic potential. The Redevelopment Area, when take as a whole, repre- In order to cure the Redevelopment Area's deficiencies, sents a portion of the City of Cape Girardeau that by rea- blighting factors, and leverage the private mitigation of son of age, obsolescence, inadequate or outmoded design other conditions described in this document, significant or physical deterioration, has become an economic and public and private costs most be incurred. social liability, and such conditions are conducive to ill health, transmission of disease, crime, or inability to pay The extraordinary costs associated with the factors noted reasonable taxes such that, without designation as a above, as well as development constraints previously dis- Chapter 353 project to enable the development, the City cussed, will make highest and best use development and and other taxing jurisdictions will likely see: revitalization of the Redevelopment Area economically unfeasible in the current development market. I. The Redevelopment Area experience ongoing and increasing vacancies; Under current conditions, it is improbable the Redevelop- ment Area will experience growth and development 2. The existing structures may be converted to less pro- solely through investment by private enterprise. Facts ductive use; cited in this document are among the reasons why the Re- development Area has not experienced growth, develop- 3. The depreciation and lack of physical maintenance of ment, and/or new investment. Hindered assessed valua- Redevelopment Area property may continue; tion growth, limited sales tax revenue performance, and underutilized property provide further evidence of the 4. The Redevelopment Area will continue to experi- lack of growth and development. Ongoing exacerbation enced hindered growth and development. of the factors support a conclusion the Redevelopment Area, on the whole, is unlikely to realize any redevelop- 5. The Redevelopment Area cannot reasonably be an- ment in the near future of the type,magnitude,and quality ticipate development commensurate with its poten- that would be of the greatest long-term economic benefit tial, without the implementation of the Development to the City of Cape Girardeau and other taxing jurisdic- Plan. tions. Therefore, the continued dilapidation, depreciation, and It is further unlikely the type or level of development or lack of physical maintenance of Redevelopment Area redevelopment might occur, absent the benefit and re- property, as well as a lack of development interest and sources provided by implementation of a Development corresponding potential revenue loss qualifies the Rede- Plan,or that limited efforts would yield the potential reve- velopment Area as an economic liability to the City of nue that can be generated by a comprehensive, aggres- Cape Girardeau, Cape Girardeau County, and other af- sive,and programmatic approach as proposed. fected taxing districts. Without designation as a Chapter 353 project to enable the development, the City and other taxing jurisdictions will likely see the Redevelopment Area experience ongo- ing vacancies; the conversion of the existing structure to less productive use; and the continued deterioration of facilities within the Redevelopment Area, exacerbating the lack of development interest in the property. [APPENDIX A L PHOTOGRAPHIC APPENDIX Appendix A—Area Photographs ITown Plaza Redevelopment Area,Cape Girardeau, Missouri 1 poll -COE mG L A _ �. :•3i _ Photo 1 Former Sears Site from William Street. Photo 2.Additional view of Redevelopment Area showing vehicle service area planned for demotion,on right. 1 , Photo 3-Sears site former warehouserstorage area. Pnoto 4 Gutsiae storage area near Aarenouse area J,apioatea fending,miscellaneous debris. f e .,t M.-1iv Photo 5:Former Sears entrance. Dated awning with cracked and Photo 6:Drive area conditions showing ponding water and poor chipped paint. drainage in Redevelopment Area. Town Plaza Redevelopment Area Appendix A Page-1 r f Appendix A—Area Photographs Town Plaza Redevelop merit Area Cape Girardeau Missouri w. l Photo 7:Rear of former Sears site partial roadway deterioration. Photo 8.Storm water drainage problems from budding. r Pnoto 9 Deteriorated pavement surface in Area adjacent to former Photo 10:Traffic access conflict with vehicles enteringlexisbng Sears site Redevelopment Area. i Photo 11 Outdated access from site to William Street. °"otc 1' a.,e;uate site access truck wheels jumping curb due to inadequate fuming radius. Town Plaza Redevelopment Area Appendix A Page-2 Appendix A—Area Photographs Town Plaza Redevelopment Area, Cape Girardeau,Missouri ry ?� Photo 13.Additional view of former Sears site showing vehicle Photo 14:Vacancy across street from Redevelopment Area service area on rightindicating impact on neighboring property. Town Plaza Redevelopment Area Appendix A Page-3 APPENDIX B CHAPTER 353-URBAN REDEVELOPMENT CORPORATION LAW Y 1 Town Plaza Redevelopment Area Appendix B Missouri Revised Statutes Chapter 353 Urban Redevelopment Corporations Law Section 353.010 Defiait{ons. 353.020.The following terms,whenever used or referred to in this chapter,mean: (1)"Area",that portion of the city which the legislative authority of such city has found or shall find to be blighted so that the clearance,replanning,rehabilitation,or reconstruction thereof is necessary to effectuate the purposes of this law.Any such area may include buildings or improvements not in themselves blighted, and any real property, whether improved or unimproved, the inclusion of which is deemed necessary for the effective clearance, replanning, reconstruction or rehabilitation of the area of which such buildings, improvements or real property form a part; (2) "Blighted area",that portion of the city within which the legislative authority of such city determines that by reason of age,obsolescence,inadequate or outmoded design or physical deterioration,have become economic and social liabilities,and that such conditions are conducive to ill health,transmission of disease, crime or inability to pay reasonable taxes; (3)"City"or"such cities",any city within this state; (4)"Development plan",a plan,together with any amendments thereto,for the development of all or any part of a blighted area,which is authorized by the legislative authority of any such city; (5)"Legislative authority",the city council or board of aldermen of the cities affected by this chapter; (6)"Mortgage", a mortgage,lust indenture, deed of trust, building and loan contract,or other instrument creating a lien on real property,to secure the payment of an indebtedness,and the indebtedness secured by any of them; (7) "Real property" includes lands, buildings, improvements, land under water, waterfront property, and any and all easements, franchises and hereditaments, corporeal or incorporeal, and every estate, interest, privilege, easement, franchise and right therein, or appurtenant thereto, legal or equitable, including restrictions of record,created by plat,covenant,or otherwise,rights-of-way,and terms for years; (8) "Redevelopment", the clearance, replanning, reconstruction or rehabilitation of any blighted area, and the provision for such industrial, commercial, residential or public structures and spaces as may be appropriate,including recreational and other facilities incidental or appurtenant thereto; (9)"Redevelopment project",a specific work or improvement to effectuate all or any part of a development plan; (10) "Urban redevelopment corporation", a corporation organized under the provisions of this chapter; except that any life insurance company organized under the laws of,or admitted to do business in,the state of Missouri may from time to time within five years after April 23, 1946, undertake, alone or in conjunction with,or as a lessee of any such life insurance company or urban redevelopment corporation,a redevelopment project under this chapter, and shall, in its operations with respect to any such redevelopment project, but not otherwise, be deemed to be an urban redevelopment corporation for the purposes of this section and sections 353.010,353.040,353.060 and 353.110 to 353.160. (L. 1943 p.751 §3,A.L. 1945 p. 1242§2,A.L. 1947 V.I p.393,A.L. 1%9 S.B.373,A.L. 1976 H.B. 1369,A.L. 1988 H.B. 1738,A.L. 1993 H.B.566 and S.B.376) Section 353.030 Organization of corporation—contents of articles of agreement. 353.030.Corporations referred to in this chapter as urban redevelopment corporations may be organized in the following manner: The articles of agreement or association shall be prepared, subscribed and acknowledged,and filed in the office of the secretary of state pursuant to the general corporations laws of the state and shall contain: (1)The name of the proposed corporation, which must have the words "redevelopment corporation" as a part thereof. Appendix B—Page 1 e Town Plaza Redevelopment Area (2) The purposes for which it is formed which shall be as follows: To acquire, construct, maintain and operate a redevelopment project or redevelopment projects in accordance with the provisions of this law. (3)The amount of the capital stock,and if any be preferred stock the preference thereof. (4)The number of shares of which the capital shall consist all of which shall have a par value. (5)The city in which its principal business office is to be located. (6)Its duration,which shall not exceed ninety-nine years. (7)The number of directors,which shall not be less than three,nor more than thirteen. (8)The names and post-office addresses of the directors for the first year,at least one of whom shall be a resident of the state of Missouri. (9)The names and post-office addresses of the subscribers to the articles of association or agreement. (10) A provision that in the event that income debenture certificates are issued by the corporation, the owners thereof shall have the same right to vote as they would have if possessed of certificates of stock of the amount and par value of the income debenture certificates held by them.The articles may provide for the retirement of income debenture certificates or preferred stock of the corporation as and when there shall be funds available in the treasury of the corporation from the receipt of amortization or sinking fund in installments for the purpose. Interest shall not be paid by the corporation upon such income debenture certificates in excess of nine percent per annum. Provided, however, that this limitation shall not apply to other debt of the corporation. (11) A declaration that the corporation has been organized to serve a public purpose; that all real estate acquired by it and all structures erected by it are to be acquired for the purpose of promoting the public health, safety and welfare, and that the stockholders of the corporation shall when they subscribe to and receive the stock thereof,agree that the net earnings of the corporation shall be limited to an amount not to exceed eight percent per annum of the cost to such corporation of the redevelopment project including the cost of the land, or the balances of such cost as reduced by amortization payments;provided, that the net earnings derived from any redevelopment project shall in no event exceed a sum equal to eight percent per annum upon the entire cost thereof. Such net earnings shall be computed after deducting from gross earnings the following: (a)All costs and expenses of maintenance and operation; (b)Amounts paid for taxes,assessments,insurance premiums and other similar charges; (c)An annual amount sufficient to amortize the cost of the entire project at the end of the period, which shall not be more than sixty years from the date of completion of the project. The development plan may contain provisions satisfactory to the legislative authority authorizing such plan that any surplus earnings in excess of the rate of net earnings provided in this chapter may be held by the corporation as a reserve for maintenance of such rate of return in the future and may be used by the corporation to offset any deficiency in such rate of return which may have occurred in prior years;or may be used to accelerate the amortization payments;or for the enlargement of the project; or for reduction in rentals therein; provided, that any excess of such surplus earnings remaining at the termination of the tax relief granted pursuant to section 353.110 shall be turned over by the corporation to the city. (12) A declaration that such corporations are organized' for the purpose of the clearance, replanning, reconstruction or rehabilitation of blighted areas, and the construction of such industrial, commercial, residential or public structures as may be appropriate, including provisions for recreational and other facilities incidental or appurtenant thereto. (L. 1943 p.751 §7,A.L. 1945 p. 1242§3,A.L. 1947 V.I p.393,A.L. 1969 S.B.373,A.L. 1974 2d Ex.Sess.S.B. 1) Effective 1-9-75 'Word"recognized"appears in original rolls,probably a typographical error. (1%9)Under the provisions of Chapter 353,RSMo,an urban development corporation cannot pay interest on any of its obligations at an annual rate exceeding six percent.Council Plaza Redevelopment Corporation v.Duffey(Mo.),439 S.W.2d 526. Appendix B—Page 2 Town Plaza Redevelopment Area Section 353.060 Urban redevelopment corporation may operate one or more development projects— powers,public hearing required,when. 353.060. An urban redevelopment corporation shall operate under this chapter on one or more redevelopment projects pursuant to an authorized development plan,and with respect to each such project shall have such rights, powers,duties, immunities and obligations, not inconsistent with the provisions of this law, as may be conferred upon it by city ordinance duly enacted by the legislative authority of a city affected by this chapter which is authorizing or has authorized such plan; provided, however,that no such rights or powers,except those previously granted,shall be granted by any governing authority to any urban redevelopment corporation after August 13, 1982, unless the governing authority shall hold a public hearing for the stimulation of comment by those to be affected by any such grant and shall determine thereafter that the area covered by the plan is blighted; provided, however, that notwithstanding the provisions of this section, such urban redevelopment corporation may, as a redeveloper under the provisions of the land clearance for redevelopment authority law, acquire property, by purchase or lease, from a land clearance for redevelopment authority as defined in said law,in the manner and under the terms and conditions specified in said law. (L. 1945 p. 1242§6,A.L. 1951 p.364,A.L. 1982 H.B. 1713,et al.) Section 353.090 Maintain reserves for specific purposes. 353.090.An urban redevelopment corporation shall establish and maintain depreciation, obsolescence, and other reserves,also surplus and other accounts,including,among others,a reserve for the payment of taxes according to recognized standard accounting practices. (L. 1945 p. 1242§8) Section 353.110 Real property exempt from taxation—limitation. 353.110. 1. Once the requirements of this section have been complied with, the real property of urban redevelopment corporations acquired pursuant to this chapter shall not be subject to assessment or payment of general ad valorem taxes imposed by the cities affected by this law, or by the state or any political subdivision thereof, for a period not in excess of ten years after the date upon which such corporations become owners of such real property, except to such extent and in such amount as may be imposed upon such real property during such period measured solely by the amount of the assessed valuation of the land, exclusive of improvements, acquired pursuant to this chapter and owned by such urban redevelopment corporation,as was determined by the assessor of the county in which such real property is located,or,if not located within a county,then by the assessor of such city,for taxes due and payable thereon during the calendar year preceding the calendar year during which the corporation acquired title to such real property. The amounts of such tax assessments shall not be increased during such period so long as the real property is owned by an urban redevelopment corporation and used in accordance with a development plan authorized by the legislative authority of such cities. 2.In the event,however,that any such real property was tax exempt immediately prior to ownership by any urban redevelopment corporation, such assessor or assessors shall, upon acquisition of title thereto by the urban redevelopment corporation,promptly assess such land,exclusive of improvements,at such valuation as shall conform to but not exceed the assessed valuation made during the preceding calendar year of other land,exclusive of improvements, adjacent thereto or in the same general neighborhood,and the amount of such assessed valuation shall not be increased during the period set pursuant to subsection I of this section so long as the real property is owned by an urban redevelopment corporation and used in accordance with a development plan authorized by the legislative authority of such cities. For the next ensuing period not in excess of fifteen years, ad valorem taxes upon such real property shall be measured by the assessed valuation thereof as determined by such assessor or assessors upon the basis of not to exceed fifty percent of the true value of such real property, including any improvements thereon,nor shall such valuations'be increased above fifty percent of the true value of such real property from year to year during such next ensuing period so long as the real property is owned by an urban redevelopment corporation and used in accordance with an authorized development plan. After a period totaling not more than twenty-five years, such real property shall be subject to assessment and payment of all ad valorem taxes,based on the full true value of the real property; provided,that after the completion of the redevelopment project, as authorized by law or ordinance whenever any urban redevelopment corporation shall elect to pay full taxes,or at the Appendix B—Page 3 Town Plaza Redevelopment Area expiration of the period, such real property shall be owned and operated free from any of the conditions, restrictions or provisions of this chapter,and of any ordinance,rule or regulation adopted pursuant thereto, any other law limiting the right of domestic and foreign insurance companies to own and operate real estate to the contrary notwithstanding. 3. No tax abatement or exemption authorized by this section shall become effective unless and until the governing body of the city: (1) Furnishes each political subdivision whose boundaries for ad valorem taxation purposes include any portion of the real property to be affected by such tax abatement or exemption with a written statement of the impact on ad valorem taxes such tax abatement or exemption will have on such political subdivisions and written notice of the hearing to be held in accordance with subdivision (2)of this subsection. The written statement and notice required by this subdivision shall be famished as provided by local ordinance before the hearing and shall include, but need not be limited to, an estimate of the amount of ad valorem tax revenues of each political subdivision which will be affected by the proposed tax abatement or exemption, based on the estimated assessed valuation of the real property involved as such property would exist before and after it is redeveloped; (2) Conducts a public hearing regarding such tax abatement or exemption, at which hearing all political subdivisions described in subdivision (1) of this subsection shall have the right to be heard on such grant of tax abatement or exemption; (3)Enacts an ordinance which provides for expiration of development rights, including the rights of eminent domain and tax abatement, in the event of failure of the urban redevelopment corporation to acquire ownership of property within the area of the development plan. Such ordinance shall provide for a duration of time within which such property must be acquired, and may allow for acquisition of property under the plan in phases. 4.Notwithstanding any other provision of law to the contrary,payments in lieu of taxes may be imposed by contract between a city and an urban redevelopment corporation which receives tax abatement or exemption on property pursuant to this section. Such payments shall be made to the collector of revenue of the county or city not within a county by December thirty-first of each year payments are due. The governing body of the city shall furnish the collector a copy of any such contract requiring payment in lieu of taxes. The collector shall allocate all revenues received from such payment in lieu of taxes among all taxing authorities whose property tax revenues are affected by the exemption or abatement on the same pro rata basis and in the same manner as the ad valorem property tax revenues received by each taxing authority from such property in the year such payments are due. 5.The provisions of subsection 3 of this section shall not apply to any amendment or future amendment to a phased development plan approved by the governing body of the city prior to the effective date of the provisions of subsection 3 of this section and upon which construction has been in progress pursuant to such phased plan. (L. 1945 p.1242§ 10,A.L. 1947 V.I p.393,A.L. 1986 H.B. 1327) 'Wads"shall not"appear in original rolls. Section 353.120 Transfer by fiduciaries and public agencies of real property to a redevelopment corporation. 353.120. Notwithstanding any requirement of law to the contrary, or the absence of direct provision therefor in the instrument under which a fiduciary is acting,every executor,administrator,trustee,guardian or any other person,holding trust funds or acting in a fiduciary capacity,unless the instrument under which such fiduciary is acting expressly forbids,also the state, its subdivisions,cities,all other public bodies,all public officers, corporations, organized under or subject to the provisions of the banking law (including savings banks, savings and loan associations, trust companies, private bankers and private banking corporations), the state director of finance as conservator, liquidator or rehabilitator of any such person, partnership or corporation, person, partnership and corporations organized under or subject to the provisions of the insurance law, the director of the department of insurance as conservator, liquidator, or rehabilitator of any such person,partnership or corporation,any of which owns or holds any real property within any blighted area proposed to be cleared or redeveloped by an urban redevelopment corporation, Appendix B—Page 4 Town Plaza Redevelopment Area may grant, sell, lease or otherwise transfer any such real property to an urban redevelopment corporation, and receive and hold any cash, mortgages, or other securities or obligations exchanged therefor by such urban redevelopment corporations,and may execute such instruments and do such acts as may be deemed necessary or desirable by them or it and by the urban redevelopment corporations in connection with the development and any development plan. (L. 1943 p.751 § 18,A.L. 1945 p. 1242§ 11) Section 353.130 Redevelopment corporation may acquire property. 353.130. 1. An urban redevelopment corporation may acquire real property or secure options in its own name or,in the name of nominees,it may acquire real property by gift,grant,lease,purchase,or otherwise. 2. An urban redevelopment corporation shall have the right to acquire by the exercise of the power of eminent domain any real property in fee simple or other estate which is necessary to accomplish the purpose of this chapter,under such conditions and only when so empowered by the legislative authority of the cities affected by this chapter. 3.An urban redevelopment corporation may exercise the power of eminent domain in the manner provided for corporations in chapter 523, RSMo; or it may exercise the power of eminent domain in the manner provided by any other applicable statutory provision for the exercise of the power of eminent domain. Property already devoted to a public use may be acquired in like manner, provided that no real property belonging to any city,county,or the state,or any political subdivision thereof may be acquired without its consent. (L. 1943 p.751 § 19,A.L. 1945 p. 1242§ 12) (1975)This section and chapter 353 held not to violate constitution of this state or of the United States.Parking Systems,Inc.v.Kansas City Downtown Redevelopment Corp.(Mo.),518 S.W.2d 11. Section 353.140 Occupancy of property acquired by corporation by previous owners—conditions. 353.140. When title to real property has been vested in an urban redevelopment corporation by gift,grant, devise,purchase,or by condemnation proceedings or otherwise,the urban redevelopment corporation may agree with the previous owners of such property,or any tenants continuing to occupy or use it,or any other persons who may occupy or use or seek to occupy or use such property,that such former owner,tenant or other persons may occupy or use such property upon the payment of a fixed sum of money for a definite term or upon the payment periodically of an agreed sum of money. Such occupation or use shall not be construed as a tenancy from month to month,nor require the giving of notice by the urban redevelopment corporation for the termination of such occupation or use or the right to such occupation or use, but immediately upon the expiration of the term for which payment has been made the urban redevelopment corporation shall be entitled to possession of the real property and may maintain an action for either unlawful detainer or ejectment for the purpose of recovering immediate possession thereof. (L. 1943 p.751 §21,A.L. 1945 p. 1242 § 13,A. 1949 H.B.2081) Section 353.150 Borrowing of money and giving of security by corporation. 353.150. 1. Any urban redevelopment corporation may borrow funds and secure the repayment thereof by mortgage which shall contain reasonable amortization provisions and shall be a lien upon no other real property except that forming the whole or a part of a single development area. 2.Certificates, bonds and notes, or part interest therein,or any part of an issue thereof,which are secured by a first mortgage on the real property in a development area, or any part thereof, shall be securities in which all the following persons, partnerships, or corporations and public bodies or public officers may legally invest the funds within their control: (1) Every executor, administrator, trustee, guardian, committee or other person or corporation holding trust funds or acting in a fiduciary capacity; (2) Persons, partnerships and corporations organized under or subject to the provisions of the banking law(including savings banks,savings and loan associations and bust companies); Appendix B—Page 5 Town Plaza Redevelopment Area (3) The state director of finance as conservator, liquidator or rehabilitator of any such person, partnership or corporation; (4) Persons, partnerships or corporations organized under or subject to the provisions of the insurance law;fraternal benefit societies;and (5) The state director of the department of insurance as conservator, liquidator or rehabilitator of any such person,partnership or corporation. 3.Any mortgage on the real property in a development area,or any part thereof,may create a first lien,or a second or otherjunior lien,upon such real property. 4. Any urban redevelopment corporation may sell or otherwise dispose of any or all of the real property acquired by it for the purposes of a redevelopment project. In the event of the sale or other disposition of real property of any urban redevelopment corporation by reason of the foreclosure of any mortgage or other lien, through insolvency or bankruptcy proceedings, by order of any court of competent jurisdiction, by voluntary transfer or otherwise,and the purchaser of such real property of such redevelopment corporation shall continue to use, operate and maintain such real property in accordance with the provisions of any development plan,the legislative authority of any city affected by the provisions of this chapter,may grant the partial tax relief provided in section 353.110; but if such real property shall be used for a purpose different than that described in the redevelopment plan, or in the event that the purchaser does not desire the property to continue under the redevelopment plan, or if the legislative authority shall refuse to grant the purchaser continuing tax relief, the real property shall be assessed for ad valorem taxes upon the full true value of the real property and may be owned and operated free from any of the conditions,restrictions or provisions of this chapter. (L. 1943 p.751 § 22,A.L. 1945 p. 1242 § 14) Section 353.170 City may acquire,clear,conveyor lease property for use in redevelopment project. 353.170.Any city subject to this chapter shall have power: (1)To acquire by the exercise of the power of eminent domain, or otherwise, an area designated on a master plan under the authority of the legislative authority of the city as a redevelopment area; (2)To clear any such real property and install, construct, and reconstruct streets, utilities and any and all other city improvements necessary for the preparation of such area for use in accordance with the provisions of this chapter;and (3)To sell or lease such real property for use in accordance with the provisions of this chapter. (L. 1945 p. 1242§ 16) Section 353.190 Real property tax abatement not to apply,excursion gambling boats. 353.190. For projects related to any riverfront development designed to enhance the location of an excursion gambling boat licensed under the provisions of section 313.800 to 313.850,RSMo,real property tax abatement under chapter 353, RSMo, shall not apply for each year of the redevelopment project to the assessed value of the real property for taxes due and payable during the calendar year preceding the calendar year during which a redevelopment corporation acquires title to such real property, but shall apply to any increase in the assessed value of such (L. 1994 H.B. 1248& 1048§ 16)property after the acquisition of the real property by a redevelopment corporation. Appendix B—Page 6 [APPENDIX C REDEVELOPMENT AREA DEMOGRAPHICS BY RADIUS Appendix C-Area Demographics by Radius Town Plaza Redevelopment Area TOWN PLAZA - DEMOGRAPHIC PROFILE 1990-2000 Census 2005 Estimates 6 2010 Pro'ections Caloulatea minq P nal Block Gmu s-March 2006 rr mi 3.00 mi 5,00 mi .• Girardeau, 2005 Estimated Population 6,901 30,585 38,897 c 2010 Projected Population 6,729 30,394 39,199 m 2000 Census Population 7,147 30,985 38,746 C 1990 Census Population 6,863 31,243 37,943 d Historical Annual Growth 1990 to 2005 0.0% -0.1% 0.2% Projected Annual Growth 2005 to 2010 -0.5% -0.1% 0.2% 2005 Est. Households 3,140 12,951 16,349 2010 Proj.Households 3,159 13,262 16,997 2000 Census Households 3,126 12,637 15,666 1990 Census Households 3,145 12,256 14,760 Historical Annual Growth 1990 to 2005 -0.0% 0.4% 0.77o a 5 Projected Annual Growth 2005 to 2010 0.1% 0.5% 0.8% 2005 Est.Population 0 to 9 Years 9.8% 10.5% 11.0% 2005 Est.Population 10 to 19 Years 12.7% 13.8% 13.6% 2005 Est.Population 20 to 29 Years 24.1% 21.1% 19.5% LU 2005 Est.Population 30 to 44 Years 16.4% 17.2% 18.0% 2005 Est.Population 45 to 59 Years 15.3% 17.5% 18.4% a 2005 Est.Population 60 to 74 Years 10.2% 10.7% 10.9% - a 2005 Est.Population 75 Years Plus 11.5% 9.2% 8.4% 2005 Est.Median Age 33.4 34.6 35.1 2005 Est.Male Population 44.9% 47.0% 47.4% 2005 Est.Female Population 55.1% 53.0% 52.6% a a 2005 Est.Never Married 37.0% 34.1% 31.6% E 2005 Est.Now Married 35.5% 41.5% 44.9% 2005 Est Separated or Divorced 15.5% 14.2% 13.2% 2005 Est.Widowed 12.0% 10.2% 10.3% "g 2005 Est.HH Income$200,000 or More 1.1% 2.1% 2.5% 2005 Est. HH Income$150,000 to 199,999 0.8% 1.2% 1.3% 2005 Est. HH Income$100,000 to 149.999 3.6% 5.1% 5.8% 2005 Est. HH Income$75,000 to 99,999 5.7% 8.0% 8.9% F LU 2005 Est. HH Income$50,000 to 74,999 15.8% 15.6% 16.4% 0 2005 Est. HH Income$35,000 to 49,999 16.2% 16.7% 16.9% - i 2005 Est. HH Income$25,000 to 34,999 16.5% 13.8% 13.2% 2005 Est. HH Income$15,000 to 24,999 16.6% 15.8% 14.9% 9 2005 Est. HH Income$0 to 14,999 23.7% 21.7% 20.2% 2005 Est.Average Household Income $38,405 $46,714 $50,455 g 2005 Est.Median HH Income $31,624 $35,605 $38.275 g 2005 Est. Per Capita Income $18,315 $20,474 $21,775 2005 Est.Number of Businesses 832 2,332 2,757 lr 2005 Est Total Number of Employees 11,263 27,892 32,535 Appendix C-Page 1 Appendix C-Area Demographics by Radius Town Plaza Redevelopment Area 2005 Est.White Population 87.9% 86.6% 87.8% tWi 2005 Est.Black Population 8.8% 9.7% 8.7% 2005 Est.Asian&Pacific Islander 1.0% 1.3% 1.2% 2005 Est.American Indian&Alaska Native 0.3% 0.4% 0.4% 2005 Est. Other Races Population 2.0% 1.9% 1.8% 2005 Est. Hispanic Population 105 368 432 2005 Est. Hispanic Population Percent 1.5% 1.2% 1.1% 2010 Proj. Hispanic Population Percent 1.7% 1.3% 1.2% 2000 Hispanic Population Percent 1.5% 11% 1 1% m 2005 Est.Adult Population(25 Years or Older) 4,342 19,273 24,885 2 Z 0 2005 Est. Elementary(0 to 8) 7.7% 6.3% 6.3% a F c 2005 Est.Some High School(9 to 11) 12.0% 11.5% 111% H 2005 Est. High School Graduate(12) 26.7% 25.4% 26.0% 0 9 2005 Est.Some College(13 to 16) 18.4% 19.2% 19.0% Ul v' 2005 Est.Associate Degree Only 4.5% 4.3% 4.3% 3 a 2005 Est. Bachelor Degree Only 20.9% 21.8% 21.8% 2005 Est.Graduate Degree 9.8% 11.4% 11.6% 2005 Est.Total Housing Units 3,416 14,021 17,695 - 2005 Est. Owner Occupied Percent 43.0% 50.5% 54.0% • 2005 Est. Renter Occupied Percent 48.9% 41.9% 38.4% 2005 Est.Vacant Housing Percent 8.1% 7.6% 7 E.6% _ K w 2000 Homes Built 1999 to 2000 0.7% 1.2% 1.8% Y 2000 Homes Built 1995 to 1998 3.8% - r 5.2% 6.6% - m 2000 Homes Built 1990 to 1994 4.4% 5.5% 6.5% d 2000 Homes Built 1980 to 1989 14.8% 12.0% 12.7 m 2000 Homes Built 1970 to 1979 20.9% 19.9% 21.2% 8 U) 2000 Homes Built 1960 to 1969 12.8% 17.7% 16.8% a 2000 Homes Built 1950 to 1959 15.9% 13.3% 12.0% = 2000 Homes Built Before 1949 26.7% 25.3% 22.5% € E 2000 Home Value$1,000,000 or More - - - S 2000 Home Value$500,000 to$999,999 0.4% 0.3% 0.5% 2000 Home Value$400,000 to$499,999 - 0.5% 0.7% - 2000 Home Value$300,000 to$399,999 0.5% 1.6% 1.9% E 2000 Home Value$200,000 to$299,999 1.8% 5.3% 6.2% - 2000 Home Value$150,000 to$199,999 1.2% 6.9% 8.4% 2000 Home Value$100,000 to$149,999 12.8% 23.2% 24.4% • 2000 Home Value$50,000 to$99,999 62.7% 47.8% 44.4% $ 2000 Home Value$25,000 to$49,999 16.9% 11.5% 10.8% 2000 Home Value$0 to$24,999 3.7% 2.9% 2.8% r 2000 Median Home Value $71,635 $91,269 $95,853 € 2000 Median Rent $186 $198 $203 Appendix C-Page 2 Appendix C-Area Demographics by Radius Town Plaza Redevelopment Area m 2005 Est.Labor:Population Age 16+ 5,824 25,264 31,828 19 2005 Est.Civilian Employed 59.2% 60.8% 61.9% w 2005 Est.Civilian Unemployed 3.7% 3.6% 3.3% Ir 2005 Est.in Armed Forces 0.2°/ 0.1% 0.2% g2005 Est.not in Labor Force 36.9% 35A% 34.6% 2005 Labor Force:Males 44.1% 46.5% 46.9% 2005 Labor Force:Females 55.9% 53.5% 53.1% 2000 Occupation: Population Age 16+ 3,541 15,412 19,387 2000 Mgmt, Business,&Financial Operations 8.1% 10.0% 10.7% 2000 Professional and Related 22.0% 21.6% 21.9% 2000 Service 20.6% 19.1% 17.8% 2000 Sales and Office 28.6% 28.2% 28.0% 2000 Farming, Fishing,and Forestry 0.1% 0.1% 0.1% b 2000 Construction, Extraction,8 Maintenance 6.9% 7.1% 7.5% 2000 Production,Transport,&Material Moving 13,7% 13.8% 13.9% 6 2000 Percent White Collar Workers 58.8% 59.9% 60.7-1 2000 Percent Blue Collar Workers 41.2% 40.1% 39.3% s a O 2000 Drive to Work Alone 80.8% 80.8% 81.9% Y FK 2000 Drive to Work in Carpool 9.3% 9.9% 9.9% oC O 2000 Travel to Work by Public Transportation 1.0% 0.7% 0.6% s W Q 2000 Drive to Work on Motorcycle 0.3% 0.2% 0.2% Z 2000 Walk or Bicycle to Work 6.7% 6.0% 4.9% F$ 2000 Other Means 0.3% 0.4% 0.5% 2000 Work at Home 1.6% 1.9% 1.9% 2000 Travel to Work in 14 Minutes or Less 67.0% 60.3% 58.0% 2000 Travel to Work in 15 to 29 Minutes 23.2% 29.0% 30.7% o 2000 Travel to Work in 30 to 59 Minutes 6.4% 7.4% 8.0% 2000 Travel to Work in 60 Minutes or More 3.4% 3.3% 3.4% 2000 Average Travel Time to Work 14.4 14.8 15.3 2005 Est.Total Household Expenditure(in Millions) $116.0 $538.6 $713.7 IX2005 Est.Apparel $5.1 $23.6 $31.3 S H 2005 Est.Contributions&Gifts $7.0 $33.5 $44.9 Z 2005 Est. Education&Reading $2.7 $12.9 $17.2 sm K2005 Est.Entertainment $6.2 $29.1 $38.7 9 W 2005 Est. Food, Beverages&Tobacco $18.8 $86.2 $113.5 g Uj w 2005 Est. Furnishings And Equipment $4.4 $21.1 $28.3 `a f 2005 Est. Health Care&Insurance $8.8 $40.3 $53.0 § h 2005 Est. Household Operations&Shelter& 8 Z Utilities $35.7 $ 165.4 $219.0 2005 Est.Miscellaneous Expenses $1.9 $8.6 $11.3 2005 Est. Personal Care $1.6 $7.6 $10.0 2005 Est Transportation $23.7 $110.4 $146.5 Appendix C-Page 3 APPENDIX 3 TOWN PLAZA REDEVELOPMENT AREA TAX IMPACT STATEMENT + r CITY OF CAPE GIRARDEAU,MISSOURI TAX IMPACT ANALYSIS FOR TOWN PLAZA REDEVELOPMENT AREA FEBRUARY 23.2007 Desdopment Dynamics, LLC(-0")pmpared this tar Impact anaWs d Me pDposed poled by Greater Mimoun Builders in the City of Cape Girardeau, Gtr Gtrattleau County, Mi n. The analysis was performed/n compliance wRh SecUm 353110.3 of me Missoun Revised statutes. The anaA� evacuates Me p jected knpact to affected taxtunsdic0on5aspart ofa aapter353proJM This report does net attempt quanhYy the owm/l economic impact ofthe ProJect TONN PLAZA REDEVELOPMENT ARP.A—TAX IMPACT ANALYSIS 1. PURPOSE OF THIS ANALYSIS The purpose of this tax impact analysis is to provide timely and relevant information to the affected taxing districts to which the report is sent pursuant to Section 353.110.3 of the Revised Missouri Statutes of Missouri 2000, as amended, which is cited as "The Urban Redevelopment Corporations Law"most often simply referred to as"Chapter 353". H. DESCRIPTION OF THE PROJECT The Town Plaza redevelopment project is located on the comer of South Kingshighway and William Street in the City of Cape Girardeau, Cape Girardeau County, Missouri. The property consists of a single tax parcel and contains a retail strip center ("Town Plaza Center'), several out buildings, and a stand alone facility, formerly occupied by Sears (the "Sears Site"). The proposed Town Plaza Redevelopment Area(the "Redevelopment Area") covers only the Sears Site. The City of Cape Girardeau, Missouri (the "City") is authorized and empowered pursuant to the provisions of Chapter 353 to aid the redevelopment of underutilized property within a Redevelopment Area through adoption of a Development Plan in order to direct certain actions that are necessary to facilitate business attraction and redevelopment. In the case of the Redevelopment Area, the Development Plan provides for the remediation of blighting factors and encourages actions to enable the highest and best use of the property within the Redevelopment Area. Financial impediments and barriers to development of the Redevelopment Area must be overcome in order for the development and rehabilitation to occur. The City is considering adoption of the Town Plaza Redevelopment Plan in order to promote the economic well-being and development of the City and other affected taxing jurisdictions. The redevelopment plan does not contemplate or negate the possibility a repositioning of the the Town Plaza Center may be required in the future. This repositioning may involve the consideration of additional economic development tools in order to allow for the highest and best use of the of the land to provide the greatest economic benefit to all taxing jurisdictions. M. PROJECT OBJECTIVE Greater Missouri Builders (the "Developer") estimates that rental fees generated within the Redevelopment Area will be able to finance certain interior improvements and rehabilitation project costs to accommodate and attract the National Asset Recovery Service, Inc. ("NARS') center in the old Sears Site. However, approximately $4 million in additional funding, through public assistance, is necessary to finance other project costs to convert the Redevelopment Area from its current condition into one that enhances the long-term benefits for all taxing entities. The City intends, subject to the approval of the City Council, to extend tax abatement on real property improvements, through the use of Chapter 353 and other financing mechanisms, to assist in the remediation of blight in the Redevelopment Area. Under Chapter 353, the City is allowed to grant 100% real property tax abatement on improved land for ten years, and up to 50% real property tax abatement on land and improvements for an additional fifteen years. To provide the necessary assistance to the Redevelopment Area, the Developer has requested the maximum real property tax Development Dynamics.1.LU Page'_nf8 TOWN PLAZA REDEVELOPMENT AREA—TAX IMPACT ANALYSIS abatement permitted under state law, limited to the Redevelopment Area. The Developer will continue to pay the existing base-year real property taxes on Town Plaza Center and taxes on any building improvements in existence at the time the Redevelopment Area is designated in years 1-10. The future projected tax savings on the real property is proposed to be reinvested by the Developer in the Redevelopment Area, to cover eligible project costs incurred in the reduction of blighting factors present on the project site. The Developer proposes to invest $3,000,000 in Real Property Improvements, as defined below, and additional soft costs in the Redevelopment Area for renovation and reconstruction. Commencement of construction will occur upon approval, with substantial completion occurring on or before December 31, 2007. As a result of the new investment and tax abatement, the Developer will assist the City in locating the NARS office center within the Redevelopment Area. NARS will create up to an estimated four hundred (400)jobs in the City and encourage new full-time, part-time, and temporary employment in the Redevelopment Area. The City intends, subject to the approval of the City Council, to extend tax abatement real property improvements as follows: IN Real Property Improvements — In years 1-10 following completion of said Real Property Improvements, 100% of any increased real property value over the base (excluding base improvements)within the Redevelopment Area shall be excluded from the calculation of real property taxes. In years 11-25 following completion of said Real Property Improvements, 50% of the total real property value (including base improvements) within the Redevelopment Area shall be excluded from the calculation of real property taxes. IV. TAX INFORMATION The Town Plaza Redevelopment Project will impact the governmental revenue figures through projected increases in real property tax. This tax impact analysis applies only to increased real property tax receipts. The real property tax revenue figures are based upon improvements anticipated as part of this project. A. TOWN PLAZA CENTER TAX REVENUE Figure 1 identifies the address, property locator number, market valuation, and 2006 assessed valuation for the Town Plaza Center. The Town Plaza Center is assessed as a single tax parcel, calculations were prepared to separately determine real property and building improvements taxes for Town Plaza and the NARS Building (Redevelopment Area) based upon information supplied by the Cape Girardeau County Assessor's Office. Figure 1: Redevelopment Area Property Assessed Valuation and Taxes Base Tax Year Town Plaza Center • D#20-308-00-09-008.00-2000 Commercial 2138 William Street Market Value Assessed Valuallon Total Taxes Paid Land Improvements Total Land Improvements Total Town Plare Center Overall $ 1,222,729 $ 3,316,921 $ 4,539,650 $ 378,309 S 1,074,381 f 1,452,690 a. Town Plaza(ONy) S 826,676 $ 2.242.540 $ 3,069,216 $ 271,634 $ 726,379 $ 996,013 Taxes Pail $ 15,411 S 41,209 $ 58,620 b. NARS Bldg(Only) $ 396,053 S 1,074,381 $ 1,470,434 $ 106,675 $ 348,002 $ 454.677 Taxes Pail $ 6,052 S 19,746 $ 25,798 $ 82,418 Development Dynamics,LLC Page 3 of 8 3 G o z = � A o N'- a pOy � fi 91� W C E G SIH SI� y6ry _ jr, bN o _ W - z s � z x N N N M N ms �l N N N N N M N N M « e « N N N N N N N N! All 14;g e � L y a a m <g g yEE¢p �y if G 3 U + v 2 TORN PLATA REDEVELOPMENT AREA—TAX IMPACT AN.ALI'SIS B. FUTURE REAL PROPERTY TAX REVENUE The direct tax impact on the affected taxing jurisdictions was derived through the standard evaluation of tax data and related calculations. Only the Real Property Improvements will impact the government revenue figures through abatement on increased valuations and related real property tax receipts. Real property tax revenue projections are based upon preliminary investment estimates included in the Development Plan. Projected real property tax figures were calculated based on an increase in the estimated assessed value of the real property multiplied by the Seals Site's combined current commercial tax rate of$5.6735 per$100 of assessed valuation. A commercial surcharge tax (.3690) was included in 100% of the Redevelopment Area real property value. Figure 2: Quantitative Assumptions QUANMATIVE ASSUMPTIONS 1. Real property is owned by Greater Missouri Builders. 2. Tax abatement on the increased value of the real property,located at 2136 William Street,will be 100"/a of the improved land in years 1-10,and 50%on land and improvement in years 11-25. o Real Property Improvement Investment Redevelopment Area-S3,000,000. 3. New investment in the Redevelopment Area is anticipated to take place within twelve months. 4. Job Creation/Retention a NARS intends to hive up to four hundred(400)full-time equivalent jobs during the tens of the abatement in the Redevelopment Area Figure 3 shows the tax impact for the Redevelopment Area only, without abatement (MARS Bldg. base year). Figure 4 shows the tax impact with abatement on new investment within the Redevelopment Area (MARS Bldg.) on real property improvements only. Figure 5 shows the tax impact with abatement on 50% on existing improvements within the Redevelopment Area (MARS Bldg.)and, Figure 6 is a compilation of the previous figures with summary totals. V. CRITICAL ASSUMPTIONS The conclusions and projections presented in this analysis are based upon project information provided by the Developer, published government tax tables, and other information sources considered to be reliable. There is an inherent assumption that information provided by these sources is correct, complete, and reliable. Limited steps were taken to verify the accuracy of the aforementioned assumptions; nevertheless, D2 believes they constitute a reasonable basis for the report's preparation. The tax revenue projections represent prospective information and estimates regarding a project yet to be constructed. The projections are not provided as assurance that a certain level of performance will be achieved or that certain events will occur. The actual results may vary from the calculations described herein. D2 assumes no risk for events or uncertainties that occur. Development Dynamics,LLC Page 4 of 8 Z N Q H � w w ' - N ry � n O N � •O � b y P P ��pp �O N r p O m �pp� p N d N e+f 1t10 O N O. `r0 I� N C < G M• - - v ry � e - Z pO W .D T N A A O N P .r0 Pr d N N tai 4: N � P P .O •O r pp .O N N d P bb N N O r P N d N T M d N P b r - N a N N - da ry m Aa iry o O f`t t1 e1 d N OO. b r w ..pp O 8pNp N o? N O d ry bbl n O H P •O I H M - = NNG . 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