HomeMy WebLinkAboutOrd.5067.04-02-2018 BILL NO. 18-36 ORDINANCE NO. Sal
AN ORDINANCE DESIGNATING A CERTAIN TRACT OF LAND IN THE
CITY OF CAPE GIRARDEAU, MISSOURI AS A "BLIGHTED AREA"
PURSUANT TO CHAPTER 353, REVISED STATUTES OF MISSOURI, AS
AMENDED; APPROVING THE DEVELOPMENT PLAN SUBMITTED FOR THE
REDEVELOPMENT OF THAT BLIGHTED AREA; APPROVING A
DEVELOPMENT AGREEMENT IN CONNECTION THEREWITH; AUTHORIZING
CERTAIN ACTIONS IN CONNECTION THEREWITH; AND CONTAINING A
SEVERABILITY CLAUSE.
WHEREAS, the City of Cape Girardeau, Missouri (the "City") is
authorized to undertake certain redevelopment projects pursuant to
Chapter 353 of the Revised Statutes of Missouri, as amended ("Chapter
353") , and Ordinance No. 4167 of the City (the "Urban Redevelopment
Ordinance") ; and
WHEREAS, on or about February 13, 2017, the Cape Dogwood
Redevelopment Corporation (the "Corporation") submitted the Cape
Dogwood Development Plan (the "Development Plan") , attached as• Exhibit
A hereto and incorporated herein by reference, which envisions the
redevelopment of approximately 10 acres in the City located southwest
of the intersection Independence Street and Sheridan Drive (as further
described in the Development Plan, the "Redevelopment Area") ; and
WHEREAS, a blighting study has been prepared by Southeast
Missouri Regional Planning and Economic Development Commission (the
"Blighting Study") to assist the City Council in determining whether
the Redevelopment Area is blighted pursuant to the requirements of
Chapter 353 and the Urban Redevelopment Ordinance; and
. WHEREAS, a duly noticed public hearing was held on March 5, 2018
and continued on March 19, 2018 at the Cape Girardeau City Hall for
the stimulation of comment concerning the Blighting Study and
Development Plan (the "Public Hearing") ; and
WHEREAS, by reason of age, obsolescence, inadequate or outmoded
design or physical deterioration, the Redevelopment Area has become an
economic and social liability, and such conditions are conducive to
ill health, transmission of disease, crime or inability to pay
reasonable taxes; and
WHEREAS, the clearance, replanning, rehabilitation or
reconstruction of the Redevelopment Area is_ necessary and in the
interest of the public health, safety, morals and general welfare of
the people of the City; and
WHEREAS, the City Council finds that the redevelopment of the
Redevelopment Area in accordance with the Development Plan is in the
public interest and serves a public purpose; and
WHEREAS, the City desires to enter into a development agreement
in substantially similar form to Exhibit B attached hereto (the
"Development Agreement") with the Corporation, -Cape Dogwood 573,
L.L.C. and the Cape Dogwood Community Improvement District to set
forth . the terms upon which the Development Plan, including the
granting of limited tax abatement contemplated therein, may be
implemented;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF CAPE
GIRARDEAU, MISSOURI, AS FOLLOWS:
Section 1 . The City Council hereby adopts the findings set forth
in Section 5.0 of the Development Plan, which are incorporated herein
by reference. Upon due consideration of the Blighting Study and the
testimony presented at the Public Hearing, the City Council further
finds that the Redevelopment Area is a "blighted area" as defined in
Chapter 353 and the Urban Redevelopment Ordinance, and the findings of
the Blighting Study are hereby adopted by the City Council.
Section 2 . The City Council further finds that the Development
Plan materially conforms to the requirements for development plans set
forth in the Urban Redevelopment Ordinance. The Development Plan is .
hereby approved.
Section 3. The City Council finds and determines that it is
necessary and desirable to enter into the Development Agreement to set
forth the terms upon which the Development Plan, including the grant
of limited tax abatement contemplated therein, may be implemented.
The City Manager is hereby authorized and directed to execute the
Development Agreement- on behalf of the City and the City Clerk is
hereby authorized and directed to attest to the Development Agreement
and to affix the seal of the City thereto. The Development Agreement
shall be in substantially the form attached hereto as Exhibit B, which
Development Agreement is hereby approved by the City Council, with
such changes therein as shall be approved by the officers of the City
executing the same.
Section 4 . The officers, agents and employees of the City are
hereby authorized and directed to execute all documents and take such
necessary steps as they deem necessary and advisable in order to carry
out and perform the purpose of this Ordinance.
Section 5. The sections of this Ordinance shall be severable. If
any section of this Ordinance is found by a court of competent
jurisdiction to be invalid, the remaining sections shall remain valid,
unless the court - finds that: (a) the valid sections are so essential
to and inseparably connected with and dependent upon the void section
that it cannot be presumed that the City Council has or would have
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enacted the valid sections without the void ones; and (b) the valid
sections, standing alone, are incomplete and are incapable of being
executed in accordance with the legislative intent.
Section 6. This Ordinance shall take effect and be in full force
. 10 days after its passage by the a City Council.
PASSED AND APPROVED THIS /�/.0Y OF 1 , 2018.
Harry E. ediger, Mayor
(Seal)
ATTEST:
:ruce Taylo yeDeputy City Clerk
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EXHIBIT A
DEVELOPMENT PLAN
(On file with the City Clerk)
EXHIBIT B
DEVELOPMENT AGREEMENT
(On file with the City Clerk)
DEVELOPMENT AGREEMENT
FOR THE
CAPE DOGWOOD REDEVELOPMENT AREA
AMONG THE
CITY OF CAPE GIRARDEAU, MISSOURI,
CAPE DOGWOOD REDEVELOPMENT CORPORATION,
CAPE DOGWOOD 573, L.L.C.,
AND THE
CAPE DOGWOOD COMMUNITY IMPROVEMENT DISTRICT
Dated: , 2018
Recitals......................................................................................................................................1
ARTICLE I
INCORPORATED ITEMS; DEFINITIONS; EXHIBITS
Section1.01
Definitions........................................................................................................................
2
Section1.02
Exhibits.............................................................................................................................4
ARTICLE II
REDEVELOPMENT PROJECT
Section 2.01
Redevelopment Project.....................................................................................................4
Section2.02
Control of Property ...........................................................................................................4
Section2.03
Relocation.........................................................................................................................4
Section2.04
Schedule...........................................................................................................................4
Section 2.05
City Approvals to Control.................................................................................................
5
Section 2.06
Substantial Completion.....................................................................................................
5
Section2.07
Insurance...........................................................................................................................
5
ARTICLE III
EXCUSABLE DELAY
Section3.01 Excusable Delay............................................................................................................... 6
ARTICLE IV
TAX ABATEMENT
Section4.01 Tax Abatement.................................................................................................................. 6
Section 4.02 Contest of Assessed Valuation..........................................................................................7
ARTICLE V
COMMUNITY IMPROVEMENT DISTRICT
Section5.01 District.............................................................................................................................. 7
Section 5.02 Approval of CID Project Costs......................................................................................... 7
Section 5.03 Application of District Sales Tax Revenues; Reimbursement of CID
ProjectCosts................................................................................................................. 8
Section 5.04 Governance of the District................................................................................................ 8
ARTICLE VI
DEFAULT AND REMEDIES
Section6.01 Default.............................................................................................................................. 9
Section 6.02 Remedies; Results of Termination.................................................................................... 9
F�"a N Ly w &iJ
GENERAL PROVISIONS
Section 7.01
Modifications; Successors and Assigns............................................................................9
Section 7.02
Right to Transfer Property within the Redevelopment Area;
Assignement of Development Agreement..................................................................10
Section 7.03
Indemnification and Hold Harmless...............................................................................
11
Section7.04
Notice............................................................................................................................12
Section7.05
Severability.....................................................................................................................13
Section7.06
Governing Law...............................................................................................................13
Section 7.07
Corporation's Right of Termination................................................................................14
Section7.08
Counterparts...................................................................................................................14
Section 7.09
Reimbursement of City Expenses...................................................................................14
Section 7.10
Federal Work Authorization Program.............................................................................14
Section7.11
Recording.......................................................................................................................14
Section 7.12
City Consents and Approvals.........................................................................................14
Section 7.13
Representations...............................................................................................................14
Exhibit A - Legal Description of the Area
Exhibit B - Concept Site Plan
Exhibit C - Form of Certificate of Substantial Completion
Exhibit D - Form of Certificate of Reimbursable CID Project Costs
Exhibit E - Form of Transferee Agreement
DEVELOPMENT AGREEMENT
THIS DEVELOPMENT AGREEMENT (this "Agreement") is made and entered into as of this
day of 12018, by and among the CITY OF CAPE GIRARDEAU, MISSOURI (the
"City"), a home -rule city and political subdivision of the State of Missouri, CAPE DOGWOOD
REDEVELOPMENT CORPORATION (the "Corporation"), a Missouri urban redevelopment
corporation, CAPE DOGWOOD 573, L.L.C. (the "Developer"), a Missouri limited liability company,
and the CAPE DOGWOOD COMMUNITY IMPROVEMENT DISTRICT (the "District"), a
community improvement district and political subdivision of the State of Missouri (the City, the
Corporation, the Developer and the District may each be referred to herein as a "Party," and collectively
as the "Parties").
RECITALS
A. On February 13, 2018, the Corporation submitted the "Cape Dogwood Development
Plan" (the "Development Plan") to the City concerning an approximately 10 -acre area located southwest
of the intersection of Independence Street and Sheridan Drive in the City and more particularly described
on Exhibit A attached hereto (the "Redevelopment Area").
B. The Development Plan contemplates a "Redevelopment Project" consisting of (1) the
rehabilitation and renovation of most of the commercial buildings in the Redevelopment Area,
(2) improvements to the parking areas in the Redevelopment Area, (3) demolition of the northernmost
building in the Redevelopment Area (located adjacent to Independence Street), and (4) the construction of
outdoor entertainment attractions. The rehabilitated and renovated buildings are expected to be occupied
by commercial tenants, including a family entertainment hub in the large building in the southern portion
of the Redevelopment Area.
C. The Development Plan was submitted pursuant to Chapter 353 of the Revised Statutes of
Missouri, as amended (the "Act"), and City Ordinance No. 4167 (the "Procedural Ordinance").
D. On February 9, 2018, the Corporation submitted a "Petition Authorizing the Formation of
a Community Improvement District" (the "CID Petition") to the City in accordance with Sections
67.1401 to 67.1571 of the Revised Statutes of Missouri, as amended (the "CID Act"), requesting that the
City adopt an ordinance creating the District.
E. The CID Petition contemplates that the District, upon its formation, will impose a one
percent sales tax (the "District Sales Tax") and use the revenues thereof to fund a "CID Project"
consisting of (1) the rehabilitation and renovation of commercial buildings in the District, (2) the
demolition of a commercial building in the District, and (3) the construction of parking lot and internal
vehicular and pedestrian traffic improvements within the District, all of which is also included in the
scope of the Redevelopment Project.
F. On March 5, 2018 and March 19, 2018, the City Council held duly -noticed public
hearings concerning the approval of the Development Plan and the establishment of the District in
accordance with the requirements of Chapter 353, the Procedural Ordinance and the CID Act.
G. On , 2018, the City Council adopted (1) Ordinance No. approving
the Development Plan and authorizing the execution of this Agreement and (2) Ordinance No. approving
the CID Petition and establishing the District.
H. On , 2018, the District's Board of Directors adopted Resolution No.
authorizing the execution of this Agreement.
I. The Parties desire to enter into this Agreement to provide for the process by which the
Development Plan will be implemented, including, without limitation, (1) the construction of the
Redevelopment Project, (2) the construction of the CID Project, (3) the grant of partial real property tax
abatement and (4) the use of District Sales Tax revenues to reimburse the Developer for certain eligible
expenditures.
NOW, THEREFORE, for and in consideration of the foregoing Recitals (which are incorporated
into this Agreement as an integral part hereof) and the promises, covenants and agreements contained
herein, the Parties do hereby agree as follows:
ARTICLE I
INCORPORATED ITEMS; DEFINITIONS; EXHIBITS
Section 1.01 Definitions. In addition to the terms defined elsewhere in this Agreement, the
following capitalized words and terms shall have the following meanings:
"Affiliate" means any entity that is controlled by the Developer or controlled by the same entity
or entities that control the Developer.
"Annual Operating Fund Deposit" means (a) for the Fiscal Year ending June 30, 2019, the sum
of $12,000 and (b) for each subsequent Fiscal Year, an amount equal to 102% of the then -prior Fiscal
Year's Annual Operating Fund Deposit.
"Approving Ordinance" means Ordinance No. adopted by the City Council on
32018.
"Certificate of Reimbursable CID Project Costs" means a Certificate of Reimbursable CID
Project Costs in substantially the same form of Exhibit D attached hereto, to be delivered by the
Developer to the District pursuant to Section 5.02.
"Certificate of Substantial Completion " means a Certificate of Substantial Completion in
substantially the same form as Exhibit C attached hereto, to be delivered by the Developer pursuant to
Section 2.06.
"Chapter 353 " means Chapter 353 of the Revised Statutes of Missouri, as amended.
"CID Petition " means the Petition Authorizing the Formation of Community Improvement
District approved by Ordinance No.
"CID Project" means the portion of the Redevelopment Project that includes (a) the
rehabilitation and renovation of commercial buildings in the District, (b) the demolition of a commercial
building in the District, and (c) the construction of parking lot and internal vehicular and pedestrian traffic
improvements within the District, as further described in the CID Petition.
"CID Project Costs" means the costs of constructing the CID Project that are eligible under the
CID Act to be paid by the District.
&a
"City" means the City of Cape Girardeau, Missouri.
"City Code" means the Code of Ordinances, City of Cape Girardeau, Missouri, as the same may
be amended from time to time.
"Collector" means the Collector of Revenue of Cape Girardeau County.
"Concept Site Plan " means the Concept Site Plan attached as Exhibit B hereto.
"Construction Inspector" means the City's Building Commissioner or his or her designee.
"Corporation " means the Cape Dogwood Redevelopment Corporation, an urban redevelopment
corporation formed under Chapter 353, and its permitted successors and assigns.
"Developer" means Cape Dogwood 573, L.L.C. and its permitted successors and assigns.
"Development Plan " means Cape Dogwood Development Plan approved by the City pursuant to
the Approving Ordinance.
"District" means the Cape Dogwood Community Improvement District.
"District Operating Fund" means the fund of that name established by the District pursuant to
Section 5.01.
"District Reimbursement Fund" means the fund of that name established by the District pursuant
to Section 5.01.
"District Sales Tax" means the one percent (1%) community improvement district sales tax to be
imposed by the District pursuant to Section 5.01.
"Fiscal Year" means the District's fiscal year, which, as of the date of this Agreement, is July 1
through June 30.
"Phase I Work" means the portion of the Redevelopment Project consisting of (a) the
rehabilitation and renovation of "The Venue" building for family entertainment -oriented uses and (b)
fagade and structural improvements to other commercial buildings in the Redevelopment Area (except for
the building to be demolished as part of the Phase 2 Work).
"Phase 2 Work" means the portion of the Redevelopment Project consisting of (a) the demolition
of the building marked on the map included in Appendix 1 of the Development Plan, (b) improvements to
the parking areas in the Redevelopment Area (including improvements related to internal traffic
circulation), and (c) construction of outdoor family entertainment uses, such as miniature golf or other
outdoor games.
WITi I
"PILOTS" means the payments in lieu of taxes to be made by the Developer pursuant to Section
"Procedural Ordinance " means City Ordinance No. 4167, as may be amended from time to time.
"Property " means the real property included in Redevelopment Area.
Sa
"Redevelopment Area " means the area described on Exhibit A attached hereto, within which the
Redevelopment Project and the CID Project will be constructed pursuant to this Agreement.
"Redevelopment Project" means (a) the rehabilitation and renovation of most of the commercial
buildings in the Redevelopment Area, (b) improvements to the parking areas in the Redevelopment Area,
(c) demolition of the northernmost building in the Redevelopment Area (located adjacent to Independence
Street), and (d) the construction of outdoor entertainment attractions, as further described in the
Development Plan.
"Relocation Plan " means, to the extent applicable, any statutes or ordinances requiring certain
minimum levels of relocation benefits, including, without limitation, Sections 523.200 to 523.215 of the
Revised Statutes of Missouri, as amended.
"Transferee Agreement" means the Transferee Agreement in substantially similar form to
Exhibit E to be entered into in conjunction with certain transfers of property within the Redevelopment
Area.
Section 1.02 Exhibits. The following exhibits are attached to and incorporated into this
Agreement:
(a)
Exhibit A
— Legal Description of the Redevelopment Area
(b)
Exhibit B
— Concept Site Plan
(c)
Exhibit C
— Form of Certificate of Substantial Completion
(d)
Exhibit D
— Form of Certificate of Reimbursable CID Project Costs
(e)
Exhibit E —
Form of Transferee Agreement
ARTICLE II
REDEVELOPMENT PROJECT
Section 2.01 Redevelopment Project. Subject to the terms and conditions of this Agreement,
the Developer shall construct, or cause the construction of, the Redevelopment Project, including the CID
Project, in accordance with the Development Plan, this Agreement and all applicable federal, state and
local laws, rules, regulations, ordinances and approvals.
Section 2.02 Control of Property. The Corporation owns all real property necessary to
complete the Redevelopment Project.
Section 2.03 Relocation. The relocation of any person or business from the Redevelopment
Area, if any, shall be completed in conformance with the Relocation Plan.
Section 2.04 Schedule. The Developer shall cause the completion of the Redevelopment
Project, including the CID Project, in accordance with the following schedule (subject to any excusable
delay permitted by Section 3.01):
SI
Date
Approval or deemed approval of a Certificate of
Substantial Completion for the Phase 1 Work I June 30, 2019
Approval or deemed approval of a Certificate of
Substantial Completion for the Phase 2 Work I June 30, 2021
Section 2.05 City Approvals to Control. The Developer and/or the Corporation shall obtain
or cause to be obtained all necessary zoning, building and other permits and approvals in conjunction with
the completion of the Redevelopment Project. Notwithstanding anything to the contrary contained herein
or in the Development Plan, the applicable zoning, building and other permits and approvals shall control
the specific development of the Redevelopment Project.
Section 2.06 Substantial Completion. After substantial completion of each of the Phase 1
Work and the Phase 2 Work in accordance with the provisions of this Agreement, the Developer shall
furnish a Certificate of Substantial Completion to the Construction Inspector certifying the substantial
completion of the Phase 1 Work or the Phase 2 Work, as applicable. The Construction Inspector shall,
within 45 days following delivery of the Certificate of Substantial Completion, carry out such inspections
as he deems necessary to verify to his reasonable satisfaction the accuracy of the certifications contained
in the Certificate of Substantial Completion. The Certificate of Substantial Completion shall be deemed
accepted by the Construction Inspector unless, before the end of such 45 -day period after delivery of the
Certificate of Substantial Completion to the Construction Inspector, the Construction Inspector furnishes
the Developer with specific written objections to the status of the Phase 1 Work or the Phase 2 Work, as
applicable, describing such objections and the measures required to correct such objections in reasonable
detail. Upon acceptance of the Certificate of Substantial Completion by the Construction Inspector or
upon the lapse of 45 days after delivery thereof to the Construction Inspector without any written
objections thereto, the Developer may record the Certificate of Substantial Completion with the Cape
Girardeau County Recorder of Deeds, and the same shall constitute evidence of the satisfaction of the
Developer's agreements and covenants to complete the Phase 1 Work or the Phase 2 Work, as applicable.
Section 2.07 Insurance.
(a) The Developer will cause there to be insurance for the Redevelopment Project as
hereinafter set forth at all times during the construction of the Redevelopment Project and continuing
(with respect to (1) and (2) below) during the term of this Agreement. The policies for such insurance
shall be placed with financially sound and reputable insurers licensed to transact business in the State of
Missouri. The Developer shall, from time to time at the request of the City, furnish the City with "Acord"
certificates of insurance on:
(1) Property and casualty insurance to keep the Redevelopment Project constantly
insured against loss or damage by fire, lightning and all other risks covered by the extended
coverage insurance endorsement then in use in the State in an amount equal to the Full Insurable
Value thereof (subject to reasonable loss deductible clauses). "Full Insurable Value" means the
actual replacement cost of the Redevelopment Project;
(2) Commercial liability insurance with coverages of not less than the current
absolute statutory waivers of sovereign immunity in Sections 537.600 and 537.610 of the Revised
Statutes of Missouri, as amended (which for calendar year 2018 is equal to $2,804,046 for all
claims arising out of a single accident or occurrence and $420,606 for any one person in a single
accident or incurrence). Further, the policy shall be adjusted upward annually, to remain at all
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times not less than the inflation adjusted sovereign immunity limits as published in the Missouri
Register on an annual basis by the Department of Insurance pursuant to Section 537.610 of the
Revised Statutes of Missouri, as amended; and
(3) Workers' compensation insurance, with statutorily required coverage.
(b) Simultaneously with the execution of this Agreement and annually thereafter and
throughout the term of this Agreement, the Developer shall provide evidence of contractual liability
insurance (in form and substance reasonably acceptable to the City Attorney) covering the Developer's
obligations to indemnify the City, as provided in this Agreement, by an insurance company with a rating
by a reputable rating agency indicating excellent or superior financial strength (i.e., an A.M. Best rating
of "A-" or better. The Developer agrees to provide immediate written notice to the City when a
cancellation, termination, expiration or modification of the applicable contractual liability policy occurs.
ARTICLE III
EXCUSABLE DELAY
Section 3.01 Excusable Delay. Notwithstanding anything to the contrary contained herein, in
the Development Plan or in the Approving Ordinance, the time periods provided for herein shall be
automatically extended by the number of days of delay caused by actions or events beyond the control of
the Developer (but not to exceed one year), including acts of God, labor disputes, strikes, lockouts, civil
disorder, war, lack of issuance of any permits and/or legal authorization by the governmental entity
necessary for the Developer to proceed with the construction or cause the construction of the
Redevelopment Project (provided all conditions precedent to the issuance of said permits and/or
authorizations have been met), shortage or delay in the shipment of material or fuel, governmental action,
fire, unusually adverse weather conditions, wet soil conditions, unavoidable casualties, litigation relating
to the Approving Ordinance, the establishment of the District or any element of the Redevelopment
Project, or any causes beyond the Developer's reasonable control, or by any other cause that the City
Manager in his or her reasonable discretion determines may justify the delay (an "Excusable Delay").
The Parties agree that as of the date of this Agreement, no condition or event exists that would justify an
Excusable Delay. The Developer shall notify the City in writing within 30 days after a claimed event of
the cause of the Excusable Delay. An Excusable Delay shall not include any condition or circumstance
caused or extended by the Developer, the Corporation, an Affiliate or the District or attributable to actions
or inaction by the Developer, the Corporation, an Affiliate or the District.
ARTICLE IV
TAX ABATEMENT
Section 4.01 Tax Abatement.
(a) Subject to the continuing compliance with this Agreement, upon execution of this
Agreement (and because the Corporation already owns the Property, which ownership thereof is required
to initiate tax abatement under Chapter 353), the Property shall be subject to the limited tax abatement
permitted by Section 353.110.1 for calendar years 2018 through 2027 (i.e., during this time, taxes will be
measured by multiplying the then -current ad valorem real property tax rate by the assessed value of the
land, exclusive of improvements, for 2017 ($606,780)).
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(b) In addition to any real property taxes due under (a), the Corporation and any subsequent
owners of the Property shall pay PILOTS equal to the difference between $36,000 and any taxes due
pursuant to (a) above. Accordingly, the total amount of real property taxes and PILOTs will equal
$36,000 for each year from 2018 to 2027. Notwithstanding the foregoing, in no event shall the
Corporation be required to pay more in combined taxes and PILOTS than would be due in taxes if there
were no tax abatement.
(c) PILOTS shall be paid to the Collector annually by December 31. The Parties
acknowledge their expectation that the real property tax bills provided by the Collector will reflect the
appropriate amount of taxes and PILOTs due pursuant to this Agreement. However, the failure of the
Collector to provide tax bills reflectingthe he appropriate amount of taxes and PILOTS due with respect to
the PropeAy pursuant to this Agreement will not excuse the Corporation or any subsequent owner from
paving all taxes and PILOTs by December 31 of the applicable ,year. PILOTs received by the Collector
shall be distributed among all taxing districts whose property tax revenues are affected by the tax
abatement provided herein on the same pro rata basis and in the same manner as ad valorem real property
tax revenues.
(d) Notwithstanding the foregoing, if this Agreement is terminated for any reason before the
approval or deemed approval of the Certificates of Substantial Completion for the Phase 1 Work and the
Phase 2 Work, the Corporation shall immediately pay a PILOT equal to the value of all tax abatement
(taking into account any PILOTS previously paid) previously realized by the Corporation under the
Development Plan and this Agreement.
Section 4.02 Contest of Assessed Valuation. In consideration for the limited tax abatement
provided by this Article, the Corporation agrees that neither it nor any successor in title or interest to any
of the Property will formally challenge or appeal the assessed valuation of the Property during any time
that the Property is receiving limited tax abatement under this Agreement; provided, the foregoing shall
not bind the Corporation or any successor if the assessed valuation is more than 10% greater than the
projected assessed valuation of the Property, as shown in the tax impact statement prepared in connection
with the Development Plan (the "Tax Impact Statement").
ARTICLE V
COMMUNITY IMPROVEMENT DISTRICT
Section 5.01 District Sales Tax.
(a) The District shall submit a ballot proposition to the District's qualified voters (as defined
in the CID Act) authorizing the imposition of the District Sales Tax.
(b) Upon approval by the qualified voters of the District, the District shall promptly notify
the Missouri Department of Revenue of the imposition of the District Sales Tax.
Section 5.02 Approval of CID Project Costs. From time to time, the Developer may submit
Certificates of Reimbursable CID Project Costs in substantially the form of Exhibit D attached hereto to
the District, evidencing costs incurred by the Developer in the construction of the CID Project. The
District shall review each Certificate of Reimbursable CID Project Costs and provide written objections,
if any, to the Developer within 30 days from receipt thereof. If any objections are provided, the
Developer shall cure such objections and resubmit the Certificate of Reimbursable CID Project Costs. If
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no objections are provided within 30 days of receipt, the Certificate of Reimbursable CID Project Costs
shall be deemed approved by the District on the 31st day following receipt (unless affirmatively approved
by the City before such date).
Section 5.03 Application of District Sales Tax Revenues; Reimbursement of CID Project
Costs.
(a) The District shall establish the District Operating Fund and the District Reimbursement
Fund. All District Sales Tax revenues received by the District in each Fiscal Year shall be deposited as
follows:
(1) First, District Sales Tax revenues up to the applicable Annual Operating Fund
Deposit shall be deposited into the District Operating Fund; and
(2) Second, all remaining District Sales Taxes shall be deposited into the District
Reimbursement Fund.
(b) The District shall use money deposited into the District Operating Fund to pay the costs
of administering and operating the District and any other expenses approved by the District's Board of
Directors (including, without limitation, transferring any moneys not needed for the administration and
operation of the District to the District Reimbursement Fund).
(c) The District shall use money deposited into the District Reimbursement Fund to
reimburse the Developer for the CID Project Costs identified in all approved or deemed approved
Certificates of Reimbursable CID Project Costs. The District shall, subject to annual appropriation, make
payments to the Developer from the District Reimbursement Fund on each January 1, April 1, July 1 and
October 1 (or if such date is not a business day, the next business day thereafter), to the extent (1) the
District has money in the District Reimbursement Fund and (2) the Developer has not yet been
reimbursed by the District for the CID Project Costs identified in all approved or deemed approved
Certificates of Reimbursable CID Project Costs.
(d) Notwithstanding anything to the contrary contained herein, the District may, in lieu of the
payments described in (c) above and following approval or deemed approval of the Certificates of
Substantial Completion for the Phase 1 Work and the Phase 2 Work, issue notes, bonds or other
obligations and use the proceeds thereof to reimburse the Developer for the CID Project Costs identified
in the all approved or deemed approved Certificates of Reimbursable CID Project Costs (provided,
however, the District may not issue any tax-exempt notes, bonds or other obligations without the written
permission of the City).
Section 5.04 Governance of the District. The Corporation and any successor in title to the
Property, in their role as an entity that can designate authorized representatives to serve on the District's
Board of Directors, shall cause the District to be governed in accordance with the CID Act and all other
applicable laws. In furtherance thereof, the District shall engage a qualified District administrator or
qualified legal counsel to assist in managing the operations of the District and ensuring compliance with
applicable laws.
ME
ARTICLE VI
DEFAULT AND REMEDIES
Section 6.01 Default. The occurrence and continuance of the following shall constitute an
"Event of Default":
(a) the Corporation or subsequent property owner fails to make or cause the punctual
payment of the PILOTS owed on the due date and such failure is not cured to the City Attorney's
satisfaction within five (5) days after the City gives written notice of the default to the
Corporation or subsequent property owner (provided, however, that all PILOTS paid after their
due dates will be subject to interest and penalties at the same rate as late payments of real
property taxes); or
(b) the Developer or Corporation fails to timely perform, in all material respects, any
obligation or covenant of the Developer or the Corporation, as applicable, under this Agreement,
and such failure is not cured to the City Attorney's satisfaction within thirty (30) days after the
City gives written notice thereof to the Developer or the Corporation, as applicable, or if it cannot
reasonably be cured within thirty (30) days, then, subject to Section 2.04 and Section 3.01, for
such additional time as may be necessary to cure such default so long as the Developer or the
Corporation, as applicable, is diligently proceeding to effect a cure of such default.
Section 6.02 Remedies; Results of Termination.
(a) Upon the occurrence of an Event of Default, the City or any other taxing district levying
an ad valorem real property tax in the Redevelopment Area may institute such proceedings as it deems
necessary or desirable to cure and remedy such Event of Default, including but not limited to proceedings
to compel specific performance or to terminate this Agreement. Delinquent PILOTS shall bear interest at
the same rate as delinquent ad valorem real property taxes from the date such delinquent PILOTS were
first due.
(b) Upon the termination of this Agreement pursuant to this Section, a declaration of
abandonment shall be filed with the Recorder of Deeds of Cape Girardeau County, and the Property shall
from that date be subject to assessment and payment of all ad valorem taxes based on the true full value of
such real property.
ARTICLE VII
GENERAL PROVISIONS
Section 7.01 Modifications; Successors and Assigns. The terms, conditions and provisions
of this Agreement and of the Development Plan shall not be modified or amended except by mutual
agreement in writing among the Parties (provided, that if the Corporation no longer owns any of the
Property, the Corporation need not be a party to any modification or amendment). This Agreement shall
be binding upon and inure to the benefit of the Parties and their respective assigns and successors in
interest or title to all or any portion of the Redevelopment Area; provided, however, the Corporation and
the Developer may not assign their rights under this Agreement except in accordance with the provisions
of Section 7.02.
W
Section 7.02 Right to Transfer Property within the Redevelopment Area; Assignment of
Development Agreement.
(a) Transfer to Developer or Affiliate. The Corporation may, at any time, voluntarily sell,
lease, assign, transfer, convey and/or otherwise dispose of (hereinafter collectively referred to as a
"Transfer") its interest in the Property or any portion thereof to the Developer or an Affiliate without the
City's prior written consent, if written notice of such Transfer is given to the City within thirty (30) days
after the Transfer.
(b) Transfer to Unrelated Entities Before Substantial Completion. If Certificates for
Substantial Completion for the Phase 1 Work and the Phase 2 Work have not yet been approved or
deemed approved, no Transfer of the Property or any portion thereof, except as may be permitted by (a)
above, shall occur without (1) the City's prior written consent to the Transfer and (2) the proposed
transferee's execution of a Transferee Agreement with the City in substantially the form attached as
Exhibit E (the "Transferee Agreement"). The City shall not withhold its consent of a Transfer under this
subsection so long as it is satisfied that the proposed Transferee has the resources to complete the
Redevelopment Project and the ability to operate and maintain the Redevelopment Project.
(c) Transfer to Unrelated Entities After Substantial Completion. If Certificates for
Substantial Completion for the Phase 1 Work and the Phase 2 Work have been approved or deemed
approved, the Corporation (or successor in title) may Transfer the Property or any portion thereof so long
as the proposed transferee enters into a Transferee Agreement with the City.
(d) Transferee Agreement. The Parties agree that, except as may be permitted above, no
Transfer shall occur without the prior execution of a Transferee Agreement. The Parties agree that the
intention of each Transferee Agreement is to protect the transferor and the City and the District by
ensuring that transferees of Property receive actual notice of the rights, duties and obligations contained in
this Agreement before taking ownership.
(e) Effect of Transfer. Upon a Transfer, unless otherwise expressly elected by the transferor,
all of the transferor's rights and obligations hereunder with respect to the subject property, including,
without limitation, those concerning construction, maintenance, use, tax abatement and the payment of
PILOTs, shall transfer to the transferee, and the transferor shall be released from any and all further
obligations under this Agreement with respect to the subject property.
(f) Assignment by Developer. If Certificates for Substantial Completion for the Phase 1
Work and the Phase 2 Work have not yet been approved or deemed approved, the Developer, except for
assignments to an Affiliate, may not assign its rights and obligations under this Agreement without the
City's prior written consent to the assignment, which consent shall not be withheld so long as (1) the City
determines that the proposed assignee has the resources to complete the Redevelopment Project and the
ability to operate and maintain the Redevelopment Project and (2) the City receives evidence of the
assignee's compliance with Section 2.07 and Section 7.10 at the time of assignment. If Certificates of
Substantial Completion for the Phase 1 Work and the Phase 2 Work have been approved or deemed
approved, the Developer may assign its interest to any entity so long as the City Attorney receives
evidence of the assignee's compliance with Section 2.07 and Section 7.10 at the time of the assignment.
(g) Leases in Ordinary Course of Business Exempt from this Section. The Parties
acknowledge that the Corporation (or successor in title) will enter into leases with tenants in the ordinary
course of operating the Redevelopment Project as a commercial development. Notwithstanding anything
to the contrary contained herein, no prior consent of the City or Transferee Agreement (other than as
still
otherwise required by the City Code) will be required for any lease to a tenant in the ordinary course of
business.
(h) Financing. Notwithstanding anything herein to the contrary, the City hereby approves,
and no prior consent or Transferee Agreement shall be required in connection with, the right of a party to
encumber or collaterally assign its interest in the Redevelopment Area or any portion thereof or its rights
and interests in this Agreement to secure loans, advances or extensions of credit to finance or from time to
time refinance all or any part of the Redevelopment Project costs, or the right of the holder of any such
encumbrance or transferee of any such collateral assignment (or trustee or agent on its behalf) to transfer
such interest by foreclosure or transfer in lieu of foreclosure under such encumbrance or collateral
assignment; provided that all entities lending credit to such party that will obtain a secured interest in the
Party's interest in such portion of the Redevelopment Area and Redevelopment Project, through a
mortgage, deed of trust or other security interest, must subordinate their rights and interests under such
mortgage, deed of trust or other security interest to the payment of the PILOTS in the same manner as if
such PIL,OTs were real property taxes.
Section 7.03 Indemnification and Hold Harmless.
(a) The indemnification and covenants contained in this Section shall survive expiration or
earlier termination of this Agreement.
(b) The Developer and the Corporation hereby jointly and severally agree that, anything to
the contrary herein notwithstanding, they will defend, indemnify and hold harmless the City, the District,
and their respective governing body members, employees and agents against any and all claims, demands,
actions, causes of action, loss, damage, injury, liability and/or expense (including attorneys' fees and court
costs) resulting from, arising out of, or in any way connected with:
(1) the Developer's or the Corporation's failure to comply with any provision of this
Agreement;
(2) the negligence or intentional misconduct of the Developer, the Corporation or an
Affiliate, or their respective officers, employees and agents;
(3) the presence of hazardous wastes, hazardous materials or other environmental
contaminants on any property within the Redevelopment Area; or
(4) otherwise arising out of the construction of the Redevelopment Project, the
adoption of the Development Plan, the creation of the District, the imposition of the District Sales
Tax or the administration of this Agreement.
If the validity or construction of Chapter 353, the CID Act, the Procedural Ordinance and/or any other
ordinance of the City adopted in connection with this Agreement, the Development Plan, or CID Petition
or affecting the proposed Redevelopment Project are contested in court, the Developer and the
Corporation shall, jointly and severally, defend, hold harmless and indemnify the City and the District
from and against all claims, demands and/or liabilities of any kind whatsoever including, without
limitation, any claim for attorney fees and court costs, and the Developer and the Corporation shall pay
any monetary judgment and all court costs rendered against the City and the District, if any.
(c) Notwithstanding anything herein to the contrary, the City shall not be liable to the
Developer, the Corporation or the District for damages or otherwise if all or any part of Chapter 353, the
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CID Act, the Procedural Ordinance, the Approving Ordinance and/or any other ordinance of the City
adopted in connection with this Agreement, the Development Plan, the creation of the District or the
Redevelopment Project is declared invalid or unconstitutional in whole or in part by the final (as to which
all rights of appeal have expired or have been exhausted) judgment of any court of competent jurisdiction.
(d) Notwithstanding the foregoing terms of this Section, the Developer and the Corporation
are not obligated to defend, hold harmless or indemnify (1) the City with respect to any matter or expense
resulting from or arising out of the negligence or willful misconduct of the City or (2) the District with
respect to any matter or expense resulting from or arising out of the negligence or willful misconduct of
the District.
Section 7.04 Notice. Whenever notice or other communication is called for herein to be given
or is otherwise given pursuant hereto, it shall be in writing and shall be personally delivered or sent by
registered or certified mail, return receipt requested, addressed as follows:
(a) In the case of the City, to:
City of Cape Girardeau
401 Independence Street
Cape Girardeau, Missouri 63072
Attention: City Manager
with copies to:
City of Cape Girardeau
401 Independence Street
Cape Girardeau, Missouri 63072
Attention: City Attorney
and
Gilmore & Bell, P.C.
One Metropolitan Square
211 N. Broadway, Suite 2000
St. Louis, Missouri 63102
Attention: Mark D. Grimm
(b) In case of the Corporation, to:
Cape Dogwood Redevelopment Corporation
c/o Anand Patel
2544 Carriage Crossing Way
Cape Girardeau, Missouri 63701
Spa
with a copy to:
Johnson, Schneider & Ferrell L.L.C.
212 N. Main Street
Cape Girardeau, Missouri 63701
Attention: John R. Schneider
(c) In case of the Developer, to:
Cape Dogwood 573, L.L.C.
c/o Anand Patel
2544 Carriage Crossing Way
Cape Girardeau, Missouri 63701
with a copy to:
Johnson, Schneider & Ferrell L.L.C.
212 N. Main Street
Cape Girardeau, Missouri 63701
Attention: John R. Schneider
(d) In case of the District, to:
Cape Dogwood Community Improvement District
c/o
Attention:
with a copy to:
Johnson, Schneider & Ferrell L.L.C.
212 N. Main Street
Cape Girardeau, Missouri 63701
Attention: John R. Schneider
All said notices by mail shall be deemed given on the day of deposit in the mail. A change of designated
officer or address may be made by a Party by providing written notice of such request to the other party.
Section 7.05 Severability. The provisions of this Agreement shall be deemed severable. If
any provision of this Agreement is found by a court of competent jurisdiction to be invalid, the remaining
provisions of this Agreement shall remain valid unless the court finds that the valid provisions are so
essentially and inseparably connected with and so dependent upon the invalid provision that it cannot be
presumed that the parties hereto would have agreed to the valid provisions of this Agreement, or unless
the court finds the valid provisions, standing alone, are incomplete and incapable of being executed in
accordance with the intent of the Parties.
Section 7.06 Governing Law; Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of Missouri. Any action arising out of, or concerning, this
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Agreement shall be brought only in the Circuit Court of Cape Girardeau County, Missouri. All parties to
this Agreement consent to the jurisdiction and venue of such court.
Section 7.07 Developer's Right of Termination. At any time the Developer may, by giving
written notice to the City, the Corporation and the District, terminate this Agreement. Upon termination
of this Agreement, the Parties shall have no further rights or obligations hereunder except as may
expressly survive termination.
Section 7.08 Counterparts. This Agreement may be executed in several counterparts, each of
which shall be an original and all of which together shall constitute one and the same instrument.
Section 7.09 Reimbursement of City Expenses. The Developer shall promptly reimburse the
City for the City's reasonable and actual expenses in connection with the approval and administration of
the Development Plan, the CID Petition and this Agreement.
Section 7.10 Federal Work Authorization Program. The Developer and any subsequent
owner receiving tax abatement must comply with and satisfy the requirements of Section 285.530.2 of the
Revised Statutes of Missouri, which requires (1) any business entity receiving tax abatement to, by sworn
affidavit and provision of documentation, annually affirm its enrollment and participation in a federal
work authorization program with respect to the employees working in connection with the business entity
receiving tax abatement, and (2) every such business entity to annually sign an affidavit affirming that it
does not knowingly employ any person who is an unauthorized alien in connection with the entity
receiving tax abatement. The Developer or subsequent owner shall provide such affidavit and
documentation to the City upon execution of this Agreement and annually on or before November 15 of
each year during the term of this Agreement, beginning November 15, 2019.
Section 7.11 Recording. The Corporation shall, within 30 days of execution, record this
Agreement in the real property records of the Cape Girardeau County Recorder of Deeds and upon such
recording shall provide a copy to the City.
Section 7.12 City Consents and Approvals. Pursuant to the Approving Ordinance, the City
Manager is authorized to execute all documents on behalf of the City as may be required to carry out and
comply with the intent of the Ordinance and this Agreement. The City Manager is also authorized, unless
otherwise expressly provided herein to the contrary, to grant on behalf of the City such consents,
estoppels and waivers relating to this Agreement as may be requested during the term hereof, provided,
such consents, estoppels and/or waivers shall not adversely affect the tax exemption as provided for
herein, waive an Event of Default, or materially change the nature of the transaction unless approved by
the City Council.
Section 7.13 Representations.
(a) By the City. The City represents, warrants, covenants and agrees as a basis for the
undertakings on its part contained herein that:
(1) The City is a home -rule City organized and existing under the laws of the State
of Missouri and its Charter, and by proper action has been duly authorized to execute, deliver and
perform this Agreement.
(2) To the best of the City's knowledge, there are no lawsuits either pending or
threatened that would affect the ability of the City to perform this Agreement.
-14-
(b) By the Corporation.
(1) The Corporation is an urban redevelopment corporation duly organized and
existing under the laws of the State of Missouri, and has power to enter into, and by proper action
has been duly authorized to execute, deliver and perform, this Agreement.
(2) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement, conflicts with or results in a breach of any of the terms, conditions
or provisions of any restriction, agreement or instrument to which the Corporation is now a party
or by which the Corporation is bound.
(3) There are no lawsuits either pending or threatened that would affect the ability of
the Corporation to proceed with the completion or operation of the Redevelopment Project.
(c) By the Developer. The Developer represents, warrants, covenants and agrees as the basis
for the undertakings on its part herein contained that:
(1) The Developer is a limited liability company duly organized and existing under
the laws of the State of Missouri and has power to enter into, and by proper action has been duly
authorized to execute, deliver and perform, this Agreement.
(2) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement, conflicts with or results in a breach of any of the terms, conditions
or provisions of any restriction, agreement or instrument to which the Developer is now a party or
by which the Developer is bound.
(3) There are no lawsuits either pending or threatened that would affect the ability of
the Developer to proceed with the completion or operation of the Redevelopment Project.
(d) By the District. The District represents, warrants, covenants and agrees as a basis for the
undertakings on its part contained herein that:
(1) The District is a community improvement district organized and existing under
the laws of the State of Missouri, and by proper action has been duly authorized to execute,
deliver and perform this Agreement.
(2) To the best of the District's knowledge, there are no lawsuits either pending or
threatened that would affect the ability of the District to perform this Agreement.
[Remainder of page intentionally left blank. Signature pages to follow.]
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IN WITNESS WHEREOF,the Parties have set their hands and seals the day and year first above
written.
•
CITY OF CAPE GI •_' I EAU,MISSOURI
to YT's, B
s v w D=1 N. • .�tt A. Me er
� �_• tip, ,. : � '
`011TH 1 Title: City Man.ger
By: I'PI(L
Name: Gayle Conrad
Title: City Clerk
STATE OF MISSOURI )
) SS
COUNTY OF CAPE GIRARDEAU )
On this day of pepfilkir ,2018,before me appeared SCOTT A.MEYER to me personally
known, who, being by me duly sworn, did say that he is the City Manager of the CITY OF CAPE
GIRARDEAU, MISSOURI, a home-rule city and political subdivision of the State biNissouri, and that
the seal affixed to the foregoing instrument is the seal of said City, and said instrument was signed and
sealed in behalf of said City by authority of its City Council,and said SCOTT A.MEYER acknowledged
said instrument to be the free act and deed of said City.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the
County and State aforesaid,the day and year first above written.
BRUCE TAYLOR ame: • P 7/dy
Notary Public-Notary Seal � {
STATE OF MISSOURI Notary Public—State of Missouri
Scott County Commissioned in SSCe,# ".Cad,
My Commission Expires: Oct. 12,2019
Commission # 11249070
(SEAL)
My Commission Expires:ea• / M/f
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CAPE DOGWOOD REDEVELOPMENT
CORPORATION
By: ç O7i
d . �r. etairi
Name: Anand Patel
Title: President
STATE OF MISSOURI )
)SS
COUNTY OF CAPE GIRARDEAU )
On this , ay of bk./: , 2018, before me appeared ANAND PATEL, to me personally
known, who, being by me duly sworn, did say that he is the President of the CAPE DOGWOOD
REDEVELOPMENT CORPORATION,a Missouri redevelopment corporation,and that he is authorized
to sign the foregoing instrument on behalf of said redevelopment corporation,and acknowledged to me that
he executed the within instrument as said redevelopment corporation's free act and deed.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the
County and State aforesaid,the day and year first above written.
Notary Pgblic
(SEAL)
My Commission Expires: l MARY G. HOLMES :'
Notary Public. Notary Seal
/ii2, 3/ 4 () State of Missouri
Cc Cope Girardeau County
Commission # 16037598
My Commission Expires August 31.
[Development Agreement]
-17-
CAPE DOGWOOD 573,L.L.C.,a Missouri
limited liability company
By: 0'crrid. d.i°
Name: Anand Patel
Title: Pi Cst gni
STATE OF MISSOURI )
)SS
COUNTY OF CAPE GIRARDEAU )
-its
On this-r-' day of i !(6c_! , 2018, before me appeared ANAND PATEL, to me personally
known, who, being by me dy sworn, did say that he is the of CAPE DOGWOOD 573,
L.L.C.,a Missouri limited liability company,and that he is authorized to sign the foregoing instrument on
behalf of said limited liability company,and acknowledged to me that he executed the within instrument as
said limited partnership's free act and deed.
IN TESTIMONY WHEREOF, 1 have hereunto set my hand and affixed my official seal in the
County and State aforesaid,the day and year first above written.
(74/<,,c 6 "7/V041(52--
Notary P ibi`!c
(SEAL)
My Commission Expires: ' MARY G. HOLMES
Notary Public, Notary Seal
D I 3 State of Missouri
Cape Girardeau County
ir Commission # 16037598
My Commission Expires August 31, 2020
[Development Agreement]
-18-
CAPE DOGWOOD COMMUNITY
IMPROVEMENT DISTRICT .
By:
Name: AnIf1IV I) fA7EI2__.
Title: Chairman
(SEAL)
ATTEST:
0By: f' ' p„4*----------
Name:
Title: Secretary
STATE OF MISSOURI )
)SS
COUNTY OF CAPE GIRARDEAU )
{ •
On thi day of C dr ,2018,before me appeared , to me personally known,
who,being by me duly swo ,did say that he is the Chairman of the CAPE DOGWOOD COMMUNITY
IMPROVEMENT DISTRICT, a community improvement district and political subdivision of the State
of Missouri, and that the seal affixed to the foregoing instrument is the seal of said District, and said
instrument was signed and sealed in behalf of said District by authority of its Board of Directors,and said
acknowledged said instrument to be the free act and deed of said District.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the
County and State aforesaid,the day and year first above written.
Notary Illic
(SEAL)
My Commission Expires: I MARY G. HOLMES
Notary Public, Notary Seal
aril- "5// ')�rt11 Stole or Missu.i;i
�lc�[, Cape Girardeau County
My CommissioniExplreslAugust 31. 2020
[Development Agreement]
•
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CAPE DOGWOOD COMMUNITY
IMPROVEMENT DISTRICT
By:
Name:
Title: Chairman
(SEAL)
ATTEST:
By:
Name:
Title:
Secretary
STATE OF MISSOURI )
) SS
COUNTY OF CAPE GIRARDEAU )
On this day of , 2018, before me appeared , to me personally known,
who, being by me duly sworn, did say that he is the Chairman of the CAPE DOGWOOD
COMMUNITY IMPROVEMENT DISTRICT, a community improvement district and political
subdivision of the State of Missouri, and that the seal affixed to the foregoing instrument is the seal of
said District, and said instrument was signed and sealed in behalf of said District by authority of its Board
of Directors, and said acknowledged said instrument to be the free act and deed of said
District.
IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the
County and State aforesaid, the day and year first above written.
(SEAL)
My Commission Expires:
[Development Agreement]
Notary Public
K111
EXHIBIT A
LEGAL DESCRIPTION OF THE REDEVELOPMENT AREA
LOT 2 OF INDEPENDENCE VII IR,GF SUBWSION AS SWMN N PIAT NECUROED OCTOBER 14, 2011 AS D(XI.IMENT NO. 201&' 1514 CF THE LAND RECORDS OF CAPE
GIRARDEAU COUNTY MISSOUP,I. A RESUBDIVISION OF ALL OF I PT NIIAIRFRFD TNENTY.TM )n) AND PART OF LOTS NUMBERED TNENTY-ONE 121). AND TVorNTY THREE
123) OF R.L. STURD(VANTS SUADMSION ANO PART OF OUT LO' {UMBER FIFTY-SEVEN 157) OF V SIP SURVEY 92.99 'rn4NSHIP K N OR1H, RANGE I3 EAST ALL BEING IN
OUT _DTS NUMBERED FIFTY SEVEN ISiI AND FIFTY-OGHT 1581 M U S P. SURVEY 12198. TU'NNSHIF30 NORTH. RANGES 13 AND 14 EAST IN 7HE CITY OF GAPE GIRAROFAU.
MISSOURI, AND FIFING SLSJKT TO AN ABANDONED RAILROAD FIGHT OF WAY
EXHIBIT B
CONCEPT SITE PLAN
EXHIBIT C
FORM OF CERTIFICATE OF SUBSTANTIAL COMPLETION
CERTIFICATE OF SUBSTANTIAL COMPLETION
CAPE DOGWOOD 573, L.L.C. (the "Developer"), pursuant to that certain Development
Agreement dated as of , 2018 (the "Agreement"), among the City of Cape Girardeau,
Missouri (the "City"), the Cape Dogwood Redevelopment Corporation, the Developer and the Cape
Dogwood Community Improvement District, hereby certifies to the City as follows:
1. That as of , 20 , the Phase [* *] Work has been substantially
completed in accordance with the Agreement.
2. The Phase [*_*] Work has been completed in a workmanlike manner and in
accordance with all applicable zoning, building and other permits issued by the City.
Lien waivers for the Phase [* *] Work have been obtained.
4. This Certificate of Substantial Completion is accompanied by the project architect's
certificate of substantial completion on AIA Form G-704 (or the substantial equivalent thereof), a copy of
which is attached hereto as Appendix A and by this reference incorporated herein), certifying that the
Phase [* *] Work has been substantially completed in accordance with the Agreement.
5. This Certificate of Substantial Completion is being issued by the Developer to the City in
accordance with the Agreement to evidence the Developer's satisfaction of all obligations and covenants
with respect to the Phase [*_*] Work.
6. The City's acceptance (below) in writing to this Certificate and the recordation of this
Certificate with the Cape Girardeau County Recorder, shall evidence the satisfaction of the Corporation's
agreements and covenants to complete the Phase [*_*] Work.
This Certificate is given without prejudice to any rights against third parties which exist as of the
date hereof or which may subsequently come into being.
All certifications or statements made or set forth in this Certificate of Substantial Completion are
made solely for the benefit of the City and shall not be relied upon or used for any purpose by any third
party in any proceeding, claim or contest of any kind, nature or character.
All capitalized terms not otherwise defined herein shall have the meaning ascribed to such terms
in the Agreement.
IN WITNESS WHEREOF, the undersigned has hereunto set his/her hand this day of
120
ACCEPTED:
CITY OF CAPE GIRARDEAU, MISSOURI
City Manager
CAPE DOGWOOD 573, L.L.C.
By:
Name:
Title:
(Insert Notary Form(s) and Legal Description)
C-2
EXHIBIT D
FORM OF CERTIFICATE OF REIMBURSABLE CID PROJECT COSTS
CERTIFICATE OF REIMBURSABLE CID PROJECT COSTS
TO: Cape Dogwood Community Improvement District
c/o
Attn:
Terms not otherwise defined herein shall have the meaning ascribed to such terms in the
Development Agreement dated as of , 2018 (the "Agreement") among the City of Cape
Girardeau, Missouri (the "City"), the Cape Dogwood Redevelopment Corporation (the "Corporation"),
Cape Dogwood 573, L.L.C. (the "Developer") and the Cape Dogwood Community Improvement District
(the "District"). In connection with said Agreement, the undersigned hereby states and certifies that:
1. Each item listed on Schedule 1 hereto is a CID Project Cost that was incurred in
connection with the completion of the CID Project.
2. These CID Project Costs have been paid by the Developer and are reimbursable under the
CID Act and the Agreement.
3. There has not been filed with or served upon the Developer any notice of any lien, right
of lien or attachment upon or claim affecting the right of any person, firm or corporation to receive
payment of the amounts stated in this request, except to the extent any such lien is being contested in
good faith.
4. All necessary permits and approvals required for the CID Project are in full force and
effect.
5. If any cost item to be reimbursed under this Certificate is deemed not to be eligible to be
reimbursed by the District, the Developer shall have the right to substitute other eligible CID Project
Costs for payment hereunder.
6. The Developer and the Corporation are not in default or breach of any term or condition
of the Agreement.
Dated this day of , 20_
CAPE DOGWOOD 573, L.L.C.
[Name], [Title]
Approved for Payment this day of 520
CAPE DOGWOOD COMMUNITY IMPROVEMENT
DISTRICT
[Name], [Title]
D-2
SCHEDULEI
TO CERTIFICATE OF REIMBURSABLE CID PROJECT COSTS
D-3
EXHIBIT E
FORM OF TRANSFEREE AGREEMENT
This TRANSFEREE AGREEMENT ("Transferee Agreement') is entered into this day of
20_, by and between the CITY OF CAPE GIRARDEAU, MISSOURI (the "City")
and , a corporation ("Transferee").
RECITALS
A. The Property (as defined in the hereinafter defined Development Agreement) to be
purchased by Transferee and legally described in Exhibit A attached hereto (the "Redevelopment
Project') is part of the Redevelopment Project described in the Cape Dogwood Development Plan (the
"Development Plan") approved by the City pursuant to Ordinance No. adopted by the City Council
on , 2018 (the "Approving Ordinance").
B. The Property and the Redevelopment Project are subject to that certain Development
Agreement for the Cape Dogwood Redevelopment Area dated as of , 2018 (the
"Development Agreement") among the City, Cape Dogwood Redevelopment Corporation (the
"Corporation"), Cape Dogwood 573, L.L.C. (the "Developer") and the Cape Dogwood Community
Improvement District, which Development Agreement was recorded in the Cape Girardeau County
Recorder of Deeds Office on , 2018, as Document No.
C. Section 7.02 of the Development Agreement requires, as a condition precedent to certain
transfers of the Property, that the proposed transferee enter into and deliver to the City this Transferee
Agreement, obligating the Transferee to comply with the requirements of the Development Plan and the
obligations of the Developer under the Development Agreement.
D. The parties desire to enter into this Transferee Agreement in order to satisfy the
conditions precedent set forth in Section 7.02 of the Development Agreement.
NOW, THEREFORE, for and in consideration of the promises and the covenants entered
herein, City and Transferee agree as follows:
1. The Transferee has entered into a purchase contract with the Corporation, or an
authorized successor and assign, pursuant to which the Transferee will acquire the Property.
2. The Transferee acknowledges that it has been provided with and/or has reviewed the
Approving Ordinance and the Development Agreement.
3. The Transferee acknowledges and agrees that its acquisition, use and enjoyment of the
Property and any future disposition of the Property are subject to the terms of the Development
Agreement.
4. The Transferee acknowledges that in the event of the sale, lease, sublease, assignment, or
other voluntary or involuntary disposition of the Property, the obligations of the Development Agreement
shall continue and shall inure to and be binding upon the heirs, executors, administrators, successors and
assigns of the respective subsequent transferees as if they were in every case specifically named and shall
be construed as a covenant running with the land and enforceable as if such purchaser, tenant, transferee
or other possessor thereof were originally a party to and bound by the Development Agreement. The
Transferee assumes the duty to notify any purchaser, tenant, transferee or other possessor of the
Redevelopment Project of its rights, duties and obligations under the Development Agreement.
5. The parties agree that the intention of this Transferee Agreement is to ensure that
Transferee has actual notice of the rights, duties and obligations contained in the Development Agreement
before taking ownership of the Property, and nothing contained in this Transferee Agreement shall be
deemed to impose any rights, duties or obligations that are not imposed pursuant to the Development
Agreement.
This Transferee Agreement shall be governed by the laws of the State of Missouri.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year
first above written.
(SEAL)
Attest:
City Clerk
D-2
CITY OF CAPE GIRARDEAU, MISSOURI
Un
City Manager
[TRANSFEREE]
By:
Name:
Title:
EXHIBIT A TO TRANSFEREE AGREEMENT
[*Legal description to be inserted*]
D-3
CITYOf CAPE
G I R A R D E A U
Cape Dogwood
Development Plan
Submitted by:
Cape Dogwood Redevelopment Corporation
February 13, 2018
1.0 Introduction
The shopping center commonly known as Town Plaza (the "Center") is located in
the City of Cape Girardeau, Missouri (the "City"), south of Independence Street, between
Kingshighway and Sheridan Drive. The original portion of the Center opened for business
in August 1960 and various portions of the Center have been further developed or
redeveloped ever since. This Development Plan applies to the portion of the Center
depicted on Appendix 1 and legally described on Appendix 2 hereto, which generally
consists of approximately 10 acres of property located southwest of the intersection of
Independence Street and Sheridan Drive (the "Redevelopment Area").
While other portions of the Center have received investment in recent years,
including the development of a Wal-Mart Neighborhood Market immediately west of the
Redevelopment Area, the property within the Redevelopment Area has languished. Many
of the buildings and parking lots in the Redevelopment Area are dilapidated or
deteriorating. A study documenting these conditions, prepared by the Southeast Missouri
Regional Planning and Economic Development Commission ("SEMORPC"), is attached
as Appendix 3 hereto. This study concludes that the Redevelopment Area is a "blighted
area," as defined in Section 353.020(2) of the Revised Statutes of Missouri.
This Development Plan proposes that partial tax abatement be granted to the Cape
Dogwood Redevelopment Corporation (the "Corporation"), and its successors and
assigns, under Chapter 353 of the Revised Statutes of Missouri ("Chapter 353") to
incentivize redevelopment of the Redevelopment Area and the remediation of the blighted
area conditions described in the SEMORPC study.
In 2010, the City adopted Ordinance No. 4167 (the "Urban Redevelopment
Ordinance"). The Urban Redevelopment Ordinance provides that redevelopment
corporations organized pursuant to Chapter 353 may submit development plans to the
City seeking tax abatement incentives available under Chapter 353. This Development
Plan has been submitted to the City by the Corporation to satisfy the requirements of the
Urban Redevelopment Ordinance.
2.0 Redevelopment Project
This Development Plan proposes a "Redevelopment Project" consisting of the
rehabilitation and renovation of most of the commercial buildings in the Redevelopment
Area, improvements to the parking areas in the Redevelopment Area, demolition of the
northernmost building in the Redevelopment Area (located adjacent to Independence
Street)', and the construction of outdoor entertainment attractions. The rehabilitated and
renovated buildings are expected to be occupied by commercial tenants, including a
family entertainment hub in the large building in the southern portion of the
Redevelopment Area (currently known as "The Venue"). Completion of the
Redevelopment Project will remediate the blighted area conditions described in the
SEMORPC study.
The building proposed to be demolished is marked on the map included in Appendix 1.
Cape Dogwood Development Plan
Page 1
3.0 Proposed Tax Abatement
Chapter 353 permits up to 25 years of partial tax abatement. This Development
Plan limits partial tax abatement to 10 years. During the 10 -year abatement period, taxes
for the Redevelopment Area will be based on the assessed value of the land, exclusive
of improvements, in the year prior to the Corporation's acquisition of the real property in
the Redevelopment Area and approval of this Development Plane (i.e., the taxes
attributable to the assessed value of any improvements in the Redevelopment Area or
any increases to land value during the abatement period will be abated). However, during
the abatement period, the Corporation (and any successor property owners) will make
contractual payments in lieu of taxes ("PILOTs") that, together with any unabated taxes,
will equal $36,000 per year. The PILOTs will be divided among all taxing districts that
levy ad valorem real property taxes in the Redevelopment Area pro rata based on each
taxing district's then current levy rate.
A tax -impact statement showing the effect of the proposed abatement on each
applicable taxing district has been prepared and furnished to the applicable taxing districts
in accordance with Chapter 353 and the Urban Redevelopment Ordinance.
4.0 Urban Redevelopment Ordinance Development Plan Requirements
4.1 Legal Description. A legal description of the Redevelopment Area is
attached as Appendix 2.
4.2 Stages of Project. The Redevelopment Project will be developed in two
phases.
Phase 1 will include (a) the rehabilitation and renovation of "The Venue"
building for family entertainment -oriented uses and (b) fagade and structural
improvements to other commercial buildings. Construction of Phase 1 is
expected to begin shortly after approval of this Development Plan and take
approximately 12 months to complete.
Phase 2 will include (a) the demolition of the building marked on the map
included in Appendix 1, (b) improvements to the parking areas in the
Redevelopment Area (including improvements related to internal traffic
circulation), and (c) construction of outdoor family entertainment uses, such
as miniature golf or other outdoor games. Phase 2 is expected to begin in
either Fall 2018 or Spring 2019 and take approximately 18 months to
complete.
2 The Corporation currently owns the real property in the Redevelopment Area. Accordingly, assuming
this Development Plan is approved in 2018, the 2017 assessed value of the land will be used to
calculated unabated real property taxes.
Cape Dogwood Development Plan
Page 2
4.3 Property to be Demolished. The building marked on the map included in
Appendix 1 is expected to be demolished as part of Phase 2 of the
Redevelopment Project.
4.4 Property not to be Demolished. Except for the building described above,
no other buildings within the Redevelopment Area are expected to be
demolished.
4.5 Building Renovation. Except for the building to be demolished, all other
buildings in the Redevelopment Area are expected to be rehabilitated and
renovated.
4.6 New Construction. Outdoor family entertainment uses, such as miniature
golf, are expected to be constructed within the Redevelopment Area.
4.7 Open Space. Except as may be required by the City's zoning code (i.e.,
setbacks, etc.), this Development Plan does not require any portion of the
Redevelopment Area to be maintained as open space.
4.8 Property for Public Agencies. No portions of the Redevelopment Area
are expected to be sold, donated, exchanged or leased to any public
agency.
4.9 Zoning Changes. No zoning changes are necessary or desired for
implementation of the Development Plan.
4.10 Subdivisions. No subdivision or resubdivision of property is necessary or
desired for implementation of the Development Plan.
4.11 Street Changes. No changes to public streets are necessary or desired
for implementation of this Development Plan. Internal traffic circulation
within the Redevelopment Area across private roads and parking lots is
expected to be altered and improved as part of the Redevelopment Project.
4.12 Dwelling Accommodations. The Redevelopment Area does not currently
include any residential dwellings and is not expected to include any
residential dwellings following its redevelopment.
4.13 Housing and Business Relocation. No residents will be relocated as part
of the implementation of the Development Plan. Certain businesses
currently located in the Redevelopment Area, including those located in the
building proposed to be demolished, will need to relocated to accommodate
construction of the Redevelopment Project. These business have been
given or will receive offers to relocate within the Redevelopment Area. To
the extent applicable, the relocation of any business will be conducted in
Cape Dogwood Development Plan
Page 3
accordance with Sections 523.200 to 523.215 of the Revised Statutes of
Missouri.
4.14 Proposed Housing. The redevelopment of the Redevelopment Area is not
expected to include any housing.
4.15 Changes Outside of Redevelopment Project Area. Construction of the
Redevelopment Project is expected to include ingress/egress
improvements between the Redevelopment Area and adjacent areas.
4.16 Financing. The Redevelopment Project will be funded with a combination
of debt and equity. A letter from Southern Bank, indicating a commitment
to provide financing for the Redevelopment Project, is included in
Appendix 4.
4.17 Management. The Corporation's activities with respect to the
Redevelopment Project will be managed by Anand (Andy) Patel for at least
one year following approval of this Development Plan.
4.18 Eminent Domain. No eminent domain will be used in connection with this
Development Plan.
5.0 Required Findings
The Urban Redevelopment Ordinance requires the City Council to make certain
findings in connection with the approval of a development plan. These findings and their
applicability to this Development Plan are set forth below:
• The redevelopment called for in the development plan is necessary or
advisable to effectuate the purposes of [the Urban Redevelopment
Ordinance].
o Implementation of the Development Plan and the completion of the
Redevelopment Project will remediate the blighted area conditions
described in the SEMORPC study.
• The development plan is consistent with the master plan and/or
comprehensive plan of the city.
o The City's current comprehensive plan was adopted on January 22,
2008. The commercial uses contemplated for the Redevelopment
Area in this Development Plan are consistent with the "General
Mixed Use" designation for future land use of the Redevelopment
Area in the City's comprehensive plan.
Cape Dogwood Development Plan
Page 4
• There are or will soon be housing accommodations elsewhere available for
all persons who will be displaced by the redevelopment project, and that no
undue hardship to such persons will be caused thereby.
o No residential dwellings will be eliminated, altered or constructed as
part of the Redevelopment Project. Accordingly, no residents will be
relocated. Some businesses may be relocated to accommodate
completion of the Redevelopment Project. However, those
relocations will not cause any undue hardship because businesses
will be offered the opportunity to relocate within the Redevelopment
Area and will receive any relocation benefits required by law.
• That public facilities, including, but not limited to, school, fire, water, sewer
and police services, as well as transportation, parks, playgrounds and
recreation facilities are adequate or will be adequate to service the area at
the time that the redevelopment is ready for use.
o The Redevelopment Area has been used for commercial uses for
several decades. Completion of the Redevelopment Project is not
expected to materially increase the level of public facilities currently
serving the Redevelopment Area. Accordingly, the current level of
public facilities will be adequate to service the Redevelopment Area
upon completion of the Redevelopment Project.
• That the proposed changes, if any, in the zoning ordinances or maps, in
streets and street levels, and that the proposed street closings or
subdivisions are necessary or desirable for the redevelopment and its
protection against blighting influences, and for the city as a whole.
o No zoning, street or subdivision changes are necessary or desired in
connection with the implementation of the Development Plan.
Cape Dogwood Development Plan
Page 5
APPENDIX 1
MAP OF REDEVELOPMENT AREA
APPENDIX 2
LEGAL DESCRIPTION OF REDEVELOPMENT AREA
LOT Z OF INDEPENDENCE VILL/.GF SUBUNISIDN AS SHCM'N W K AI RECORDED DCTOBER 14.2011 AS OOCU160T NO. 2015-' 1511 SIF THE LAND REQ OF WE
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MISWURi, AND BEING SUBJECT TO AN A9AfNNED RAILROAD PC44T Of -WAY
APPENDIX 3
BLIGHT STUDY
BLIGHT ANALYSIS
64 East Plaza Way
CITY OF CAPE GIRARDEAU, MISSOURI
Southeast Missouri Regional Planning
and Economic Development Commission
P. 0. Box 366
Perryville, Missouri 63775
S73 -S47-8357
January 22, 2018
Table of Contents
I. Introduction................................................................................................................................................. 1
II. Existing Land Use....................................................................................................................................... 2
III. Findings..........................................................................................................................................................2
A. Age............................................................................................................................................................ 2
B. Obsolescence........................................................................................................................................ 3
C. Inadequate or Outmoded Design................................................................................3
D. Physical Deterioration...................................................................................................................... 3
IV. Conclusions...................................................................................................................................................5
Exhibits:
1 Study Area Boundary............................................................................................................................... 7
Photos............................................................................................................................................................. 9
Blight Analysis
64 East Plaza Way
I. INTRODUCTION
This Blight Analysis addresses property conditions at 64 East Plaza Way (The "Study
Area"). The Study Area is a single parcel (Parcel No. 20-308-00-09-001.00-0000)
containing approximately 10.22 acres. The parcel is located on the northeast corner of the
Town Plaza shopping center in the City of Cape Girardeau (the "City"), Cape Girardeau
County (the "County"), Missouri. A map and aerial photo of the Study Area are attached as
Exhibit 1A and Exhibit 113, respectively. The property is owned by Cape Dogwood
Redevelopment Corporation.
The Southeast Missouri Regional Planning and Economic Development Commission (the
"SEMORPC") was retained to conduct an analysis and determine whether the Study Area
satisfies the qualification criteria as a "blighted area" under (1) the Community
Improvement District Act, Sections 67.1401 to 67.1571 of the Revised Statutes of Missouri,
as amended (the "CID Act") and (2) the Urban Redevelopment Corporations Law, Chapter
353 of the Revised Statutes of Missouri, as amended ("Chapter 353"). This report covers
events and conditions existing on the date of our site visit January 2, 2018. Events,
conditions, and actions occurring after that date are excluded from this analysis. The
evaluation of the Study Area included a site visit and was supplemented with information
that was provided by staff from the Cape Girardeau Area Magnet, the office of the Cape
Girardeau County Assessor, Cape Girardeau Health Department and others.
Certain redevelopment incentives, including (1) the use of community improvement
district revenues to renovate, reconstruct and rehabilitate privately -owned buildings and
(2) real property tax abatement, are available in areas that the City determines to be a
"blighted area" under the CID Act and Chapter 353. The owner of the property in the Study
Area has requested that the City find that Study Area is a "blighted area" under the CID Act
and Chapter 353 and make the aforementioned redevelopment incentives available to
assist in the redevelopment of the Study Area.
Pursuant to Section 67.1401.2(3)(b) of the CID Act, an area is a "blighted area" under the
CID Act if it has been found to be a "blighted area" under Chapter 353. Accordingly, this
analysis will focus on the definition of "blighted area" in Chapter 353:
...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 (Section 353.020(2), RSMo.)
This analysis will detail the reasons why the existing conditions within the Study Area
support a determination that the Study Area is a "blighted area."
II. EXISTING LAND USE
The Study Area is located on the northeast corner of the Town Plaza.
The sole use of the property in the Study Area is commercial. The property contains seven
buildings. The total square footage of all buildings is 101,784, excluding canopies and
awnings. The Study Area also includes 124,140 square feet of asphalt paving. Gravel
parking lots and storage yards also exist on the property. Construction of brick buildings in
the Study Area began in 1952 with the first brick building and was completed in 1971with
the sixth brick structure. Additions and improvements continued into the mid -80's. A metal
building was erected in the Study Area in 2003.
Surrounding land uses around the Study Area are commercial and residential.
III. FINDINGS
The southern half of the Town Plaza shopping center (outside of the Study Area) currently
lies within an unaffiliated community improvement district and was previously declared a
blighted area by the City. Many of the same circumstances exist within the Study Area that
led to declaring that portion of the Town Plaza shopping center blighted. It is the opinion of
the SEMORPC that the Study Area meets the definition of a blighted area under Chapter 353
and, by extension, the CID Act. The SEMORPC arrived at this opinion based upon the
following factors:
A. AGE
This eligibility factor relates to the age of improvements within the Study Area.
Older improvements are more likely to (1) be below modern building code, (2) be
below modern accessibility standards and (3) contain hazardous materials such as
asbestos or lead paint. Additionally, structures over 35 years of age, without
substantial investment in rehabilitation and maintenance, are more likely to fall into
disrepair.
Age Finding As noted above, six of the seven buildings in the Study Area were built
between 1952 and 1971. As described in more detail below and in the pictures
attached to this Study, the buildings have not been well maintained in the decades
since their initial construction and are in disrepair. Although the SEMORPC did not
specifically test the Study Area for the presence of asbestos and lead paint, it notes
2
that (1) buildings built before 1980 are more likely to contain asbestos (primarily in
resilient floor tiles, ceiling tiles and roofing materials) and (2) buildings built before
1978 are more likely to contain lead paint.
B. OBSOLESCENCE
This eligibility factor relates to improvements being physically or functionally
obsolete. Improvements that are physically or functionally obsolete can no longer
accommodate the uses for which they were designed.
Obsolescence Finding: As noted above, six of the seven buildings in the Study Area
were constructed more than 45 years ago. Several of the tenant spaces in these
buildings are too small or otherwise lack the visibility and access needed to attract
modern retail tenants. As a result, many of the tenant spaces in these buildings are
vacant. Additionally, some building systems and other features are obsolete,
including:
• Building interiors, walls and floor treatments need to be modernized or
replaced;
• HVAC, wiring and plumbing systems need to be modernized or replaced; and
• The large Independence Center sign is obsolete and needs to be updated.
C. INADEQUATE OR OUTMODED DESIGN
This eligibility factor relates to whether the design of buildings and other
improvements are attractive to modern uses.
Inadequate or Outmoded Design Finding: Several areas within the Study Area suffer
from inadequate or outmoded design, including:
• Ingress/egress points in improper or dangerous locations due to changes in
traffic counts and patterns on adjacent roadways;
• Poor internal traffic circulation;
• Lack of internal pedestrian amenities and marked pathways; and
• Unattractive sizes and shapes of tenant spaces.
D. PHYSICAL DETERIORATION:
This eligibility factor relates to the physical deterioration of the improvements in
the Study Area, including physical deficiencies or disrepair in buildings or site
improvements requiring treatment or repair.
Physical Deterioration Finding: A large portion of the improvements within the
Study Area are in a state of deterioration. The following conditions were observed:
• Weeds and debris on the parking lot and around the buildings;
• Parking lot has a number of cracks, and uneven paving;
• Rusted or missing soffits and broken or malfunctioning downspouts and gutters;
• Paint on the buildings is peeling;
• Roof damage, including a building that, as of the Study date, has a tarp covering a
portion of the roof;
• Visibly aged and outdated interior floors;
• Service connections (i.e., electric and gas) appear aged, rusted or damaged;
• Some windows are broken and boarded up; and
• Ceiling tiles show evidence of water damage in some buildings.
These conditions are evidenced by photos located at the end of this report.
As a result of the conditions relating to age, obsolescence, inadequate and outmoded design
and physical deterioration described above, the Study Area is an economic and social
liability and is conducive to crime and the inability to pay reasonable taxes.
While the overall assessed value of the Study Area increased by approximately 29% from
2016 to 2017, that increase is solely attributable to the value of the land. The assessed
value of the buildings, absent the land, actually decreased by approximately 3% during this
period. This divergence between increasing land values and decreasing building values
indicates that the Study Area could be utilized in a more robust manner, but that the
condition of the buildings in the Study Area, as described above, and the cost of
remediating those conditions, are economic liabilities preventing the Study Area from
reaching its potential. In particular, an economic liability exists because of (1) the cost of
remediating the blighted conditions present in the Study Area and (2) higher level of retail
sales, assessed values and jobs that could be achieved within the Study Area if it were in a
better condition.
The present condition of the Study Area also presents a social liability because (1) the
dilapidated and deteriorated condition of the buildings has invited vandalism and (2)
visitors to the Study Area lack safe ingress/egress connections to adjacent arterial
roadways and marked pedestrian pathways to move safely from one building to another
within the Study Area.
As often occurs in areas with deteriorating improvements and significant vacancies, the
condition of the Study Area is attracting crime. The photos included at the end of this
report show broken windows and other forms of vandalism. These types of crime are more
4
likely to occur in areas that, like the Study Area, are dilapidated or deteriorating and have
levels of vacancy or underutilization.
Compared to other areas of the City, the Study Area is also failing to generate a reasonable
amounts of taxes. For example, an approximately 7 -acre tract immediately west of the
Study Area was recently redeveloped for use as a Wal-Mart Neighborhood Market. The
assessed value per acre of the adjacent parcel is almost $20,000 higher per acre than the
assessed value per acre of the Study Area. Moreover, the adjacent parcel generates
significantly more sales tax revenues than the Study Area, despite having a location that
should be almost identical to the Study Area in terms of attractiveness to retail tenants (i.e.,
both sites have access to Independence Street and its 12,500 daily traffic count). However,
retail tenants are unlikely to locate in obsolete, outdated and deteriorating buildings. As a
result, until the conditions in the Study Area described above are remediated, the Study
Area will be expected to generate an inadequate level of taxes compared to similarly
situated commercial properties.
IV. CONCLUSION
The blighting analysis and conditions identified in the Study Area meet the principle
requirements for a "blighted area" designation, as outlined in Chapter 353 and, by
extension, the CID Act. The Study Area, by reason of age, obsolescence, inadequate or
outmoded design and physical deterioration, has become an economic and social liability,
and the conditions described in this report are conducive to crime and the inability to pay
reasonable taxes. These conditions have acted as a constraint and economic impediment
to redevelopment of the site.
Significant costs must be incurred to cure the Study Area's deficiencies and blight. Public
investment in the form of real property tax abatement and community improvement
district tax revenues can leverage private investment to mitigate the blighted conditions
described in this document. The SEMORPC believes that the extraordinary cost to revitalize
the Study Area are economically infeasible under current market conditions without the
incentives permitted by Chapter 353 and the CID Act. This makes it improbable that the
Study Area will experience growth and development solely through investment by private
enterprise. It is in the public interest to encourage and assist in the removal of the blight,
as allowed under Chapter 353 and the CID Act.
It is the opinion of the SEMORPC that the Study Area meets the standards of a "blighted
area," as described in Chapter 353, and by extension, the CID Act.
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19
APPENDIX 4
PROJECT FINANCING COMMITTMENT
00 Southern
BANK
Strong Roots. Strong Branches.
February 13, 2018
Mayor and City Council
Cape Girardeau. Missouri
Re: Cape Girardeau. Missouri— Cape Dogwood Development Plan
Ladies and Gentlemen:
We are familiar with the proposal by Cape Dogwood Redevelopment Corporation to redevelop a
portion of the Town Plaza Shopping Center as described in the Cape Dogwood Development
Plan. We are pleased to announce our commitment to finance the redevelopment project
described in the Development Plan. This commitment is contingent upon final loan committee
approval and the supporting loan documentation typical of a transaction of this size and nature.
Once the loan is closed, the committed debt and developer equity will be available for the entire
development proposed and will remain available throughout.
If the City of Cape Girardeau provides tax abatement as described in the Development Plan and
approves the formation of the Cape Dogwood Community Improvement District, and if all other
developmental issues are satisfactorily addressed. Cape Dogwood Redevelopment Corporation
and its President. Andy Patel. have the financial ability to proceed with the development.
Please contact me if you have any questions or concerns.
Sincerely,
&Xd-vaj'��
Janet Varnon
Senior Commercial Loan Officer
Southern Bank
3165 William Street • Cape Girardeau, MO 63701 • 573-331-7100
www.bankwithsouthern.cona