HomeMy WebLinkAboutOrd.5321.08-03-2020 BILL NO. 20-113 ORDINANCE NO.5302/
AN ORDINANCE DESIGNATING A PORTION OF THE CITY OF CAPE
GIRARDEAU, MISSOURI, AS A REDEVELOPMENT AREA; APPROVING
THE NORTH MIDDLE/BROADWAY TAX INCREMENT FINANCING
REDEVELOPMENT PLAN; MAKING FINDINGS RELATED THERETO; AND
AUTHORIZING CERTAIN ACTIONS BY CITY OFFICIALS.
WHEREAS, the Real Property Tax Increment Allocation Redevelopment Act, Sections 99.800
to 99.865 of the Revised Statutes of Missouri, as amended (the "Act"), authorizes municipalities to
approve redevelopment projects pursuant to the Act;and
WHEREAS, the City of Cape Girardeau, Missouri (the "City") duly created the Tax Increment
Financing Commission of the City of Cape Girardeau, Missouri (the "TIF Commission") pursuant to the
Act;and
WHEREAS, the Act authorizes the TIF Commission to hold hearings with respect to proposed
redevelopment areas, plans and projects and to make recommendations thereon to the City Council of the
City; and
WHEREAS, the TIF Commission has reviewed a plan for redevelopment known as the "North
Middle/Broadway Tax Increment Financing Redevelopment Plan," attached hereto and incorporated
herein by this reference (the "Redevelopment Plan"), for an area consisting of properties at 222, 230, and
260 North Middle Street, and 430 and 440 Broadway in the City (as further described on Appendix 1 of
the Redevelopment Plan,the"Redevelopment Area"); and
WHEREAS, the Redevelopment Plan contemplates the renovation of the properties to
accommodate restaurants, retail and residential uses in the Broadway buildings and office space for a
behavioral and therapeutic services company in the North Middle and Bellevue building (the
"Redevelopment Project"); and
WHEREAS, implementation of the Redevelopment Plan and the Redevelopment Project will
remediate the conditions that cause the Redevelopment Area to be a"blighted area"under the Act; and
WHEREAS, after all proper notice was given, the TIF Commission held a public hearing in
conformance with the Act on June 24,2020 and received comments from all interested persons and taxing
districts relative to (1) the Redevelopment Plan, (2) the designation of the Redevelopment Area and (3)
the approval of the Redevelopment Project;
WHEREAS, on June 24, 2020, after due deliberation, the TIF Commission passed a resolution
(attached hereto)recommending that the City Council (1) approve the Redevelopment Plan, (2) designate
the Redevelopment Area as a "redevelopment area," as defined by the Act, (3) approve the
Redevelopment Project and(4)adopt tax increment financing with respect to the Redevelopment Project;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF CAPE
GIRARDEAU, MISSOURI,AS FOLLOWS:
Section 1. The City Council hereby makes the following findings:
A. The Redevelopment Area on the whole is a"blighted area,"as defined in Section
99.805(1) of the Act, and has not been subject to growth and development through investment by
private enterprise and would not reasonably be anticipated to be developed without the adoption
of tax increment financing. This finding includes, and the Redevelopment Plan sets forth and the
City Council hereby finds and adopts by reference: (i) a detailed description of the factors that
qualify the Redevelopment Area as a "blighted area" and qualify the Redevelopment Project
pursuant to the provisions of Section 99.810.1(1) of the Act and (ii) an affidavit, signed on behalf
of the proposed developer of the Redevelopment Project, attesting that the provisions of Section
99.810.1(1)have been met.
B. The Redevelopment Plan conforms to the comprehensive plan for the
development of the City as a whole.
C. The estimated dates of completion of the Redevelopment Project and the
retirement of obligations incurred to finance redevelopment project costs have been stated in the
Redevelopment Plan and these dates are no more than 23 years from the date of adoption of this
Ordinance approving the Redevelopment Plan and the Redevelopment Project.
D. The City has developed a plan for relocation assistance for businesses and
residences in conformity with the requirements of Sections 523.200 through 523.205 of the
Revised Statutes of Missouri, as amended.
E. A cost-benefit analysis showing the economic impact of the Redevelopment Plan
on each taxing district which is at least partially within the boundaries of the Redevelopment
Area is attached hereto and is incorporated herein as if fully set forth herein, which cost-benefit
analysis shows the impact on the economy if the Redevelopment Project is not built and is built
pursuant to the Redevelopment Plan. The cost-benefit analysis also includes a fiscal impact study
on every affected political subdivision, and sufficient information from the proposed developer of
the Redevelopment Project for the TIF Commission to evaluate whether the Redevelopment
Project as proposed is financially feasible.
F. The Redevelopment Plan does not include the initial development or
redevelopment of any gambling establishment.
Section 2. The Redevelopment Area is hereby designated as a "redevelopment area" as
defined in Section 99.805(12)of the Act.
Section 3. The Redevelopment Plan, a copy of which is attached hereto and incorporated
herein by reference, is hereby adopted and approved.
Section 4. The Redevelopment Project is hereby adopted and approved. The City Council
finds that the Redevelopment Area includes only those parcels of real property and improvements thereon
directly and substantially benefited by the proposed Redevelopment Project.
Section 5. Tax increment allocation financing is hereby adopted within the Redevelopment
Area.
Section 6. After the total equalized assessed valuation of the taxable real property in the
Redevelopment Area exceeds the certified total initial equalized assessed value of all taxable real property
in the Redevelopment Area, as determined in accordance with the Act,the ad valorem taxes and payments
in lieu of taxes, if any, arising from the levies upon taxable real property in the Redevelopment Area by
taxing districts and tax rates determined in the manner provided in Section 99.855.2 of the Act each year
afterthe effective date of this Ordinance until the payment in full of all redevelopment project costs shall
be divided as follows:
A. That portion of taxes, penalties and interest levied upon each taxable lot, block,
tract, or parcel of real property which is attributable to the initial equalized assessed value of each
such taxable lot, block, tract or parcel of real property in the Redevelopment Area shall be
allocated to and, when collected, shall be paid by the County Collector to the respective affected
taxing districts in the manner required by law in the absence of the adoption of tax increment
allocation financing; and
B. Payments in lieu of taxes attributable to the increase in the current equalized
assessed valuation of each taxable lot, block, tract, or parcel of real property in the Redevelopment
Area and any applicable penalty and interest over and above the initial equalized assessed value of
each such unit of property in the Redevelopment Area shall be allocated to and, when collected,
shall be paid to the City's Finance Director, who shall deposit such payments in lieu of taxes into a
special fund called the "North Middle/Broadway Special Allocation Fund" of the City for the
purpose of paying redevelopment costs and obligations incurred in the payment thereof. Payments
in lieu of taxes which are due and owing shall constitute a lien against the real estate of the
Redevelopment Area from which they are derived and shall be collected in the same manner as the
real property tax, including the assessment of penalties and interest where applicable.
Section 7. In addition, fifty percent (50%) of the total additional revenue from taxes,
penalties and interest which are imposed by the City or other taxing districts, and which are generated by
economic activities within the Redevelopment Area, over the amount of such taxes, penalties and interest
in the calendar year prior to the adoption of this Ordinance, while tax increment financing remains in
effect, but excluding taxes imposed on sales or charges for sleeping rooms paid by transient guests of
hotels and motels, taxes levied pursuant to Section 70.500 of the Revised Statutes of Missouri, as
amended, licenses, fees or special assessments other than payments in lieu of taxes and any penalty and
interest thereon,taxes levied pursuant to Section 94.660 of the Revised Statutes of Missouri, as amended,
for the purpose of public transportation and any other tax or fee excluded by law, shall be allocated to and
paid by the collecting officer to the City's Finance Director, who shall deposit such funds into a separate
segregated account within the North Middle/Broadway Special Allocation Fund.
Section 8. The North Middle/Broadway Special Allocation Fund is hereby established.
The North Middle/Broadway Special Allocation Fund shall have a "PILOTs Account," an "EATs
Account" and such other accounts and subaccounts as may be necessary or desirable for the
administration of the Redevelopment Plan. All moneys deposited in the North Middle/Broadway Special
Allocation Fund shall be applied in such manner consistent with the Redevelopment Plan as determined
by the City Council.
Section 9. The City Clerk is hereby directed to submit a certified copy of this Ordinance to
the County Assessor, who is directed to determine the total equalized assessed value of all taxable real
property within the Redevelopment Area as of the date of this Ordinance, by adding together the most
recently ascertained equalized assessed value of each taxable lot, block, tract or parcel of real property
within the Redevelopment Area, and shall certify such amount as the total initial equalized assessed value
of the taxable real property within the Redevelopment Area. The City.Clerk is further directed to submit
a certified copy of this Ordinance to the County Collector, and the City Finance Director is directed to
certify to the County Collector the amount of taxes derived from economic activities within the
Redevelopment Area in the calendar year prior to the adoption of this Ordinance, as prescribed in Section
7 hereof.
Section 10. 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
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 11. This Ordinance shall take effect and be in full force 10 days after its passage by
the City Council.
PASSED by the City Council of the City of Cape Girardeau, Missouri, this rartday of
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Bob Fox,Mayor
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CITYOf CAPE
G I R A R D E A U
The North
Middle/Broadway
Tax Increment Financing
Redevelopment Plan
Presented to the Tax Increment Financing Commission
of the City of Cape Girardeau, Missouri
on May 6, 2020
Prepared by:
GILMOUBELL
1.0 Introduction
1.1 Purpose of Redevelopment Plan. The purpose of this Redevelopment
Plan is to describe the parameters for the use of tax increment financing in
connection with the redevelopment of five parcels at the northeast corner of
N. Middle Street and Broadway in the City of Cape Girardeau, Missouri (the
City .
Two vacant houses and two vacant commercial buildings are located on the
five parcels; the fifth parcel contains a vacant lot. Rust Communications,
Inc. (the "Developer") has proposed using tax increment financing to fund a
portion of the costs associated with (1) redeveloping four of the parcels to
accommodate restaurants, retail space and apartments and (2) renovating
the structure at 260 N. Middle Street to accommodate the needs of a
behavioral and therapeutic services company (collectively, the
"Redevelopment Project").
1.2 Tax Increment Financing. The Real Property Tax Increment Allocation
Redevelopment Act, Sections 99.800 to 99.865 of the Revised Statutes of
Missouri (the "TIF Act"), permits municipalities to use tax increment
financing ("TIF") to fund certain eligible redevelopment project costs.
The theory of tax increment financing is that, by encouraging redevelopment
projects, the value of real property in a redevelopment area should increase.
When a TIF redevelopment plan is adopted, the assessed value of real
property in the redevelopment area is frozen for tax purposes at the level
prior to construction of improvements. The owner of the property continues
to pay property taxes at this base level. As the property is improved, the
assessed value of real property in the redevelopment area increases above
the base level. By applying the tax rate of all taxing districts having taxing
power within the redevelopment area to the increase in assessed valuation
of the improved property over the base level, a "tax increment" is produced.
The tax increments, referred to as "payments in lieu of taxes" or "PILOTs,"
are paid by the owner of the property in the same manner and at the same
time as regular property taxes. The PILOTs are transferred by the county
collector to the City and deposited in a special allocation fund. In addition,
local taxing districts transfer 50% of certain incremental "economic activity
taxes" or "EATs" (i.e., sales taxes) to the City for deposit into the special
allocation fund. The money deposited into the special allocation fund can
then be used to pay redevelopment project costs or to retire bonds or other
obligations issued to pay such costs.
The net effect of tax increment financing is to redirect a portion of property
and sales taxes generated from the completed redevelopment project to
The North Middle/Broadway
Tax Increment Financing
Redevelopment Plan
Page 1
repay a portion of the redevelopment costs. In this manner, future tax
increases are not abated, but, rather, are used to fund costs of the project.
In accordance with the TIF Act, the City has established the Tax Increment
Financing Commission of the City of Cape Girardeau, Missouri (the "TIF
Commission"). The TIF Commission's role is to review this Redevelopment
Plan, hold a public hearing to solicit public comment, and, ultimately,
recommend to the City Council whether to approve this Redevelopment
Plan and implement TIF. Following the TIF Commission's recommendation
(either in favor or in opposition), the City Council may implement TIF by
adopting an ordinance making the findings required by the TIF Act (which
are further described in this Redevelopment Plan), designating the
proposed "Redevelopment Area," and approving this Redevelopment Plan
and the "Redevelopment Project" described herein.
The TIF Act also requires the preparation of a cost -benefit analysis showing
the economic impact of the Redevelopment Plan on each taxing district that
is at least partially within the boundaries of the Redevelopment Area. This
cost -benefit analysis is a separate document that has been provided to the
TIF Commission.
1.3 The Redevelopment Area. The "Redevelopment Area" designated in this
Redevelopment Plan consists of:
A. all of Parcel No. 21-107-00-08-008.00-0000 located at 430
Broadway in the City, which contains an approximately 26,000 square foot
building;
B. all of Parcel No. 21-107-00-08-01.00-0000 located at 440
Broadway in the City, which contains an approximately 2,000 square foot
building;
C. all of Parcel No. 21-107-00-08-011.00-0000 located at 222 N.
Middle Street in the City, which contains a vacant single-family house;
D. all of Parcel No. 21-107-00-08-012.00-0000 located at 230 N.
Middle Street in the City, which contains a vacant parcel; and
E. all of Parcel No. 21-107-00-08-014.00-0000 located at 260 N.
Middle Street in the City, which contains a vacant two-story building.
A map and legal description of the Redevelopment Area are included as
Appendix 1 attached hereto.
The North Middle/Broadway
Tax Increment Financing
Redevelopment Plan
Page 2
1.4 Blighted Area Finding. Among other required findings, TIF may only be
implemented if the City Council finds that:
The redevelopment area on the whole is a blighted area, a
conservation area, or an economic development area, and has not
been subject to growth and development through investment by
private enterprise and would not reasonably be anticipated to be
developed without the adoption of tax increment financing. Such a
finding shall include, but not be limited to, a detailed description of
the factors that qualify the redevelopment area or project pursuant to
this subdivision and an affidavit, signed by the developer or
developers and submitted with the redevelopment plan, attesting that
the provisions of this subdivision have been met (Section 99.810.1(1)
of the TIF Act).
Attached as Appendix 2 hereto is a study (the "Blight Study") prepared by
the Southeast Missouri Regional Planning and Economic Development
Commission finding that the existing conditions within the Redevelopment
Area meet the requirements of a "blighted area," as defined in Section
99.805(1) of the TIF Act.
Attached as Appendix 3 hereto is an affidavit meeting the requirements of
Section 99.810.1(1) of the TIF Act signed by a representative of the
Developer.
1.5 The Redevelopment Project. The Redevelopment Project consists of the
following:
The Rialto Retail and Residential Development
The Developer will completely renovate the interior and exterior of 430
Broadway to accommodate two restaurants and two other tenants on the
first floor; six apartment units on the second floor; storage facilities for
tenants in the basement; and approximately 21 parking spaces. The parcel
at 230 N. Middle Street will be excavated and paved to create approximately
28 parking spaces for the development. The building at 222 N. Middle
Street will be razed and the property will be excavated to create
approximately 16 parking spaces. The land at 440 Broadway will be altered
and repaved to create outdoor patio seating for one of the restaurant
tenants and approximately 12 parking spaces.
The North Middle/Broadway
Tax Increment Financing
Redevelopment Plan
Page 3
260 N. Middle Street Building
The Developer will completely renovate the interior and exterior to
accommodate the needs of a behavioral and therapeutic services company
with unique handicap accessibility needs including the replacement of an
elevator and remodeling of a corporate kitchen. In addition, the land will be
excavated and paved to create approximately 10 parking spaces.
If this Redevelopment Plan is approved, the Developer expects to
commence construction in 2020 and to complete construction in 2021.
Completion of the Redevelopment Project is not expected to result in the
relocation of any existing residents or businesses because all buildings are
currently vacant. However, Missouri law requires that, in connection with
the use of tax increment financing, the City establish a relocation policy
providing certain minimum benefits to residents and businesses, if any, that
are relocated as a result of the Redevelopment Project. The City's
relocation policy is included in Ordinance No. 5091, a copy of which is
attached hereto as Appendix 4.
2.0 Required Redevelopment Plan Components
2.1 Redevelopment Program and Objectives. The redevelopment is
intended to (a) remediate the conditions that cause the Redevelopment
Area to be a Blighted Area, (b) create a sustainable and economically
feasible project that will increase the tax base of the City and other taxing
districts and (c) enhance the image of the City.
2.2 Estimated Redevelopment Project Costs. The Redevelopment Project
is estimated to cost approximately $4,970,277, as delineated below:
Cost Description
Estimated Cost
Rialto Retail and Residential
Design
$ 233,650
Site Work
481,850
Retail Construction
1,506,672
Common Area Construction
91,184
Apartments Construction
1,172,759
Elevator & Stairs
209,171
Garages
321,783
Patio Areas
93,408
Exteriors
196,880
Miscellaneous and Contingency
368,902
Subtotal 4,676,258
The North Middle/Broadway
Tax Increment Financing
Redevelopment Plan
Page 4
260 N. Middle
Construction 294,019
Total $4,970,277
2.3 Anticipated Sources of Funds to Pay Costs. The costs of completing the
Redevelopment Project may be paid from TIF funding, investor equity,
private financing and, possibly, a community improvement district sales tax
or special assessment. TIF funding available under this Redevelopment
Plan to pay Redevelopment Project costs will not exceed $2,962,650 plus
interest (however, the principal amount of any notes, bonds or other
obligations secured by TIF revenues, if any, may exceed $2,962,650 to the
extent necessary to fund costs associated with issuing the notes, bonds or
other obligations, including, without limitation, attorney fees, bank and
underwriter fees, and capitalized interest).
2.4 Anticipated Type and Term of Obligations to be Issued. The City and
the Developer will enter into a Redevelopment Agreement providing for the
terms upon which tax increment financing assistance will be provided. It is
expected that the Redevelopment Agreement will permit tax increment
revenues to be paid to the Developer for reimbursement of eligible
Redevelopment Project costs in installments as TIF revenues are
generated and/or provide for the issuance of notes or bonds secured by TIF
revenues to fund eligible Redevelopment Project costs. Regardless of
whether reimbursement to the Developer is provided directly under the
Redevelopment Agreement or through the issuance of notes or bonds, the
City's obligation to pay TIF revenues to the Developer under the
Redevelopment Agreement or to a holder of notes or bonds will not, in
accordance with Section 99.810 of the TIF Act, extend beyond the date that
is 23 years from the passage of the ordinance approving the
Redevelopment Project.
2.5 Anticipated Type and Term of Sources to Pay Costs. The Developer
will be expected to use equity and/or obtain private financing to provide
initial funding for all Redevelopment Project costs, subject to
reimbursement for eligible expenditures from:
A. TIF revenues (either from direct payments made pursuant to
the Redevelopment Agreement or from the proceeds of notes, bonds or
other obligations issued by the City, as described in Section 2.4); and
B. community improvement district sales tax or special
assessment (if implemented).
The Developer's private financing is expected to be at market rates and
terms. The City will not provide any loan guarantees or other credit
The North Middle/Broadway
Tax Increment Financing
Redevelopment Plan
Page 5
enhancement to the Developer. However, the Developer's interest in the
Redevelopment Agreement and any notes, bonds or other obligations
issued by the City (as described in Section 2.4) may be pledged as
collateral in connection with obtaining private financing.
2.6 Evidence of Commitment to Finance Project Costs. A letter from The
Bank of Missouri is attached as Appendix 5, describing the Bank's
commitment to finance Redevelopment Project costs.
2.7 Most Recent Equalized Assessed Value. The most recent equalized
assessed value of the Redevelopment Area is $195,460, based on the
following:
Street Address
Parcel Number
Assessed Value
430 Broadway
21-107-00-08-008.00-0000
$60,960
440 Broadway
21-107-00-08-01.00-0000
78,520
222 N. Middle
21-107-00-08-011.00-0000
8,740
230 N. Middle
21-107-00-08-012.00-0000
15,300
260 N. Middle
21-107-00-08-014.00-0000
31,940
Total
$195,460
2.8 Estimated Equalized Assessed Value after Redevelopment. After
completion of the Redevelopment Project, the equalized assessed value of
the Redevelopment Area is expected to be $1,441,418.
2.9 General Land Uses to Apply in the Redevelopment Area. As noted in
Section 1.5, following completion of the Redevelopment Project, the
Redevelopment Area will be used as a mixed-use development consisting
of commercial, restaurant, retail and residential space. These uses conform
with the City of Cape Girardeau Comprehensive Plan's "Downtown Mixed -
Use" designation for the Redevelopment Area.
As required by Section 99.810.1(6) of the TIF Act, the Redevelopment
Project does not include initial development or redevelopment of any
gambling establishment.
3.0 Required Findings
Section 99.810 of the TIF Act provides that the City Council cannot approve a
redevelopment plan without making certain findings. These findings, and the support for
such findings, are listed below:
The North Middle/Broadway
Tax Increment Financing
Redevelopment Plan
Page 6
• Finding #1: "The redevelopment area on the whole is a blighted area, a
conservation area, or an economic development area, and has not been subject
to growth and development through investment by private enterprise and would
not reasonably be anticipated to be developed without the adoption of tax
increment financing. Such a finding shall include, but not be limited to, a detailed
description of the factors that qualify the redevelopment area or project pursuant
to this subdivision and an affidavit, signed by the developer or developers and
submitted with the redevelopment plan, attesting that the provisions of this
subdivision have been met."
o The Southeast Missouri Regional Planning and Economic Development
Commission prepared the study attached as Appendix 2, which finds that
the Redevelopment Area meets the requirements of a "Blighted Area, " as
defined in the TIF Act. The Developer has provided an affidavit, attached as
Appendix 3, satisfying the other requirements of this finding.
• Finding #2: "The redevelopment plan conforms to the comprehensive plan for the
development of the municipality as a whole."
o As noted in Section 2.9, this Redevelopment Plan and the Redevelopment
Project described herein are consistent with the "Downtown Mixed -Use"
designation of the Redevelopment Area in the City's Comprehensive Plan.
• Finding #3: "The estimated dates, which shall not be more than twenty-three years
from the adoption of the ordinance approving a redevelopment project within a
redevelopment area, of completion of any redevelopment project and retirement
of obligations incurred to finance redevelopment project costs have been stated,
provided that no ordinance approving a redevelopment project shall be adopted
later than ten years from the adoption of the ordinance approving the
redevelopment plan under which such project is authorized and provided that no
property for a redevelopment project shall be acquired by eminent domain later
than five years from the adoption of the ordinance approving such redevelopment
project."
o Section 1.5 states that construction of the Redevelopment Project is
expected to be completed in 2021. Section 2.4 states that the City's
obligation to pay TIF revenues to the Developer under the Redevelopment
Agreement or to a holder of notes or bonds will not, in accordance with
Section 99.810 of the TIF Act, extend beyond the date that is 23 years from
the passage of the ordinance approving the Redevelopment Project.
Accordingly, all notes or bonds secured by TIF revenues will be retired by
such date. Approval of the Redevelopment Project will occur
simultaneously with the approval of the Redevelopment Plan. No use of
eminent domain is necessary for the implementation of the Redevelopment
Project.
The North Middle/Broadway
Tax Increment Financing
Redevelopment Plan
Page 7
• Finding #4: "A plan has been developed for relocation assistance for businesses
and residences."
o Although no relocations are anticipated as part of the Redevelopment
Project, the City has established a relocation policy applicable to all TIF
redevelopment projects. A copy of this relocation policy is included in
Appendix 4.
• Finding #5: "A cost -benefit analysis showing the economic impact of the plan on
each taxing district which is at least partially within the boundaries of the
redevelopment area. The analysis shall show the impact on the economy if the
project is not built, and is built pursuant to the redevelopment plan under
consideration. The cost -benefit analysis shall include a fiscal impact study on
every affected political subdivision, and sufficient information from the developer
for the commission established in section 99.820 to evaluate whether the project
as proposed is financially feasible."
o As noted in Section 1.2, a cost -benefit analysis meeting these requirements
has been provided to the TIF Commission.
• Finding #6: "A finding that the plan does not include the initial development or
redevelopment of any gambling establishment, provided however, that this
subdivision shall be applicable only to a redevelopment plan adopted for a
redevelopment area designated by ordinance after December 23, 1997."
o As noted in Section 2.9, the Redevelopment Area will be used as
commercial, restaurant, retail and residential space and will not include the
initial development or redevelopment of any gambling establishment.
The North Middle/Broadway
Tax Increment Financing
Redevelopment Plan
Page 8
APPENDIX 1
MAP AND LEGAL DESCRIPTION OF REDEVELOPMENT AREA
ti N. Middle and Broadway
Tax Increment Finance District
Study Area
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Aerial Photo: Spring, 2018
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Date o1 Map: April 24, 2020
THAT PART OF LOT SEVENTEEN (17) AND ALL OF LOT EIGHTEEN (18) IN BLOCK
"V", RANGE "E" IN THE CITY AND COUNTY OF CAPE GIRARDEAU, STATE OF
MISSOURI, CONTAINING 75,185 SQUARE FEET (1.73 ACRES), MORE OR LESS, BEING
MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGIN AT THE SOUTHWEST CORNER OF SAID LOT 18; SAID CORNER ALSO BEING
THE INTERSECTION OF THE NORTH RIGHT-OF-WAY LINE OF BROADWAY AND
THE EAST RIGHT-OF-WAY LINE OF MIDDLE STREET; THENCE WITH SAID EAST
RIGHT-OF-WAY LINE OF MIDDLE STREET, NORTH 6-11'22" EAST, 463.32 FEET TO
THE NORTHWEST CORNER OF SAID LOT SEVENTEEN 17, SAID CORNER ALSO
BEING THE INTERSECTION OF SAID EAST RIGHT-OF-WAY LINE OF MIDDLE
STREET AND THE SOUTH RIGHT-OF-WAY LINE OF BELLEVUE STREET; THENCE
LEAVING SAID EAST RIGHT-OF-WAY LINE OF MIDDLE STREET AND WITH SAID
SOUTH RIGHT-OF-WAY LINE OF BELLEVUE STREET, SOUTH 83°45'26" EAST, 125.34
FEET; THENCE LEAVING SAID SOUTH RIGHT-OF-WAY LINE, SOUTH 06'11'26"
WEST, 153.00 FEET; THENCE SOUTH 83°45'26" EAST, 55.14 FEET TO THE WEST LINE
OF AN ALLEY; THENCE WITH WEST LINE OF SAID ALLEY, SOUTH 06'11'26" WEST,
310.34 FEET TO THE SOUTHEAST CORNER OF SAID LOT 18, SAID CORNER ALSO
BEING THE INTERSECTION OF SAID WEST LINE OF ALLEY AND SAID NORTH
RIGHT-OF-WAY LINE OF BROADWAY; THENCE WITH SAID NORTH RIGHT-OF-WAY
LINE, NORTH 83°45'11" WEST, 180.47 FEET TO THE POINT OF BEGINNING, BEING
SUBJECT TO ANY EASEMENTS AND RIGHT-OF-WAYS OF RECORD.
APPENDIX 2
BLIGHT STUDY
BLIGHT ANALYSIS
Proposed North Middle/Broadway Tax Increment Financing
Redevelopment District
City of Cape Girardeau, Missouri
Southeast Missouri Regional Planning
and Economic Development Commission
P.O. Box 366
Perryville, Missouri 63775
(573) 547-8357
May, 2020
Table of Contents
I. INTRODUCTION............................................................................................1
II. EXISTING LAND USE...................................................................................2
III. FINDINGS......................................................................................................2
A. DETERIORATION OF SITE IMPROVEMENTS.......................................2
Physical Deterioration Finding.............................................................3
Economic Deterioration Finding..........................................................3
1:M1ilk [+y_V►Ll� �!
C. THE EXISTANCE OF CONDITIONS WHICH ENDANGER LIFE OR
PROPERTY BY FIRE OR OTHER CAUSES............................................4
D. ECONOMIC LIABILITY.............................................................................4
E. MENACE TO THE PUBLIC HEALTH, SAFETY, MORALS OR WELFARE
.................................................................................................................. 5
IV. CONCLUSIONS.............................................................................................6
Exhibits:
1. Location Map and Aerial Photograph..................................................................7
2. Photographic Documentation............................................................................10
Page i
Blight Analysis
North Middle/Broadway Tax Increment Financing Redevelopment District
I. INTRODUCTION
This Blight Analysis addresses property conditions at the proposed North
Middle/Broadway redevelopment area (the "Study Area") located in the City of Cape
Girardeau (the "City"), Cape Girardeau County (the "County"), Missouri. The Study Area
consists of approximately 1.73 acres, located along the 200 block of North Middle Street
and the 400 block of Broadway. The Study Area contains 5 property parcels. The Study
Area includes:
Address
Parcel Number
Occupied/Vacant
Type
260 N. Middle St.
2110700008014000000
Vacant
Residential
230 N. Middle St.
211070008012000000
Vacant
Lot
222 N. Middle St.
211070008011000000
Vacant
Residential
440 Broadway
2110701008010000000
Vacant
Commercial
430 Broadway
211070008008000000
Vacant
Commercial
A map and aerial photo of the Study Area are presented as Exhibit 1. All of the
property within the Study Area is owned by Rust Communications, Inc., d/b/a The Rialto
Retail and Residential.
The Real Property Tax Increment Allocation Redevelopment Act (the "Act") is
found in Sections 99.800 to 99.865 of the Revised Statues of Missouri. The Southeast
Missouri Regional Planning and Economic Development Commission (the "Planning
Commission") was retained to conduct an analysis and determine whether the Study
Area supports a determination that the area is a "blighted area," as defined in the Act.
This Blight Analysis covers events and conditions existing on the date of our site visit,
March 21, 2020 (events, conditions, and actions occurring after that date are excluded
from this analysis).
Page 1
The Act defines a "blighted area" as an area which "by reason of the
predominance of defective or inadequate street layout, insanitary or unsafe conditions,
deterioration of site improvements, improper subdivision or obsolete platting, or the
existence of conditions which endanger life or property by fire and other causes, or any
combination of such factors, retards the provision of housing accommodations or
constitutes an economic or social liability or a menace to the public health, safety,
morals, or welfare in its present condition and use."
The evaluation of the Study Area included site visits and was supplemented with
information provided by others, including staff from the City and the office of the Cape
Girardeau County Assessor.
II. EXISTING LAND USE
The property in the Study Area consists of a vacant lot, vacant residential
buildings and two vacant commercial buildings. The vacant commercial buildings and
one of the residential buildings contain parking lots within their respective parcels.
III. FINDINGS
It is the opinion of the Planning Commission that the Study Area meets the
definition of a "blighted area" under the Act. The Planning Commission arrived at this
opinion based upon the following findings:
This eligibility factor relates to the physical or economic deterioration of the
improvements in the Study Area. Physical deterioration refers to the physical
deficiencies of disrepair in buildings or site improvements requiring treatment or repair.
Economic deterioration refers to the decline in the economic viability of an area to
Page 2
continue to generate adequate taxes to assist local government in providing necessary
services. Economic deterioration is a root cause for an area becoming an economic
liability to a municipality and other taxing jurisdictions. Examples of economic
deterioration include: declining or stagnant sales and sales taxes; limited sales tax
generation; declining or stagnant equalized assessed valuation and real property taxes;
lost jobs; high vacancy rates; obsolete structures; underutilized property; and changes
in land use.
Physical Deterioration Finding: A significant portion of the improvements within the
Study Area are in a state of dilapidation. This includes the buildings, the parking lots,
and the underlying infrastructure. The following conditions were observed:
• Weeds and debris on the parking lot and around the building
• Parking lot is irregular and unsafe
• Windows and doors are boarded up as a result of vandalism
• Water damage is occurring, and standing water is present
• Mold is present
• Ceilings and walls are crumbling, peeling and falling
• Curbs and parking lots are cracked and broken
These conditions are documented by photos located at the end of this report.
Economic Deterioration Finding: The Study Area is located in a prime location for a
vibrant mix of commercial, retail and multi -family residential uses, yet it remains
underutilized. At 430 Broadway, a commercial building, the road front portion has been
vacant for two years and the rear portion for more than a decade. 440 Broadway, a
commercial building, has recently been vacated. The residential buildings are vacant
and uninhabitable. The commercial structure at 230 N. Middle St. was recently razed
due to threat of collapsing and repeated encounters with squatters. The total assessed
value of the Study Area is $195,470. No retail sales have occurred in the Study Area.
Page 3
B. INSANITARY OR UNSAFE CONDITIONS:
Specific examples of insanitary and unsafe conditions include the following:
• Standing water is a breeding risk for vermin and pests
• Mold and mildew have ill effects on human health
• Some of the existing buildings are unsafe and unsecured, contributing to
frequent acts of vandalism
• Trash and litter throughout the Study Area, including inside the vacant
buildings
C. THE EXISTANCE OF CONDITIONS WHICH ENDANGER LIFE OR PROPERTY
BY FIRE OR OTHER CAUSES:
The following items are indicative of conditions that endanger life or property by
fire or other causes:
• Exposed wiring is present throughout the Study Area
• A large void is present in one of the commercial building's first floor
• One building has an inoperable elevator with an unsealed shaft
D. ECONOMIC LIABILITY
The conditions described above have led the Study Area to become an economic
liability. Although the property is ideally situated, no sales tax revenue is being
produced. The cost of development, due to stated issues, has been too high to justify
private investment. As a result, taxing districts are receiving little revenue from property
within the Study Area even though they must still provide police, fire and other services
to it.
Page 4
E. MENACE TO THE PUBLIC HEALTH, SAFETY, MORALS OR WELFARE
Site visits to the Study Area noted fire hazards and unsafe and insanitary
conditions. Vandals have been persistent and caused damage to the buildings in the
Study Area. The buildings are unsafe due to broken windows, drywall is pulled off walls,
ceilings and walls are crumbling. Standing water and exposed wiring present a health
and safety concern. As long as these conditions are present, the Study Area will remain
a menace to public health and safety.
The combination of factors discussed above constitutes a menace to the public
health, safety, morals or welfare in the Study Area's present condition and use. In
addition, the continued decline of the Study Area will threaten the economic potential of
the surrounding area. Without comprehensive rehabilitation and redevelopment of the
area, its physical condition will continue to deteriorate. Due to the physical deterioration
of the Study Area and the other factors described above, the Study Area has become a
financial burden and economic liability to the City because it has failed to generate tax
revenue and economic activity commensurate with its residential and commercial
zoning designations. The Study Area will not develop without substantial public
investment to cure these blighted conditions.
IV. CONCLUSIONS
It is the opinion of the Planning Commission that the conditions identified in the
Study Area meet the requirements for a "blighted area" designation, as outlined in the
Act. These conditions have acted as a constraint and economic impediment to
redevelopment of the site. The redevelopment of the Study Area is necessary for the
remediation of blight from the Study Area.
The Study Area as a whole suffers from a predominance of deterioration of site
improvements, both physical and economic, and insanitary or unsafe conditions. These
factors have contributed to the Study Area's lack of growth and investment. As a result
Page 5
of these factors, the Study Area, in its present condition and use, constitutes an
economic liability and a menace to the public health, safety, morals or welfare.
The Study Area will likely continue its state of decline without a comprehensive
plan to address the blighting issues. It is in the public interest to encourage and assist in
the removal of the blight, as allowed under the Act.
In order to cure the Study Area's deficiencies and blight and to leverage the
private investment to mitigate the conditions described in this document, significant
costs much be incurred. The extraordinary cost to develop the Study Area makes the
development economically unfeasible. This makes it improbable that the Study Area will
experience growth and development solely through investment by private enterprise.
Page 6
Exhibit 1
Location Map and Aerial Photograph
Page 7
Geographic Location
N. Middle and Broadway
Tax Increment Financing District
yo,S,�ca5 r 10
r�
4{ p
'ANNITW �
N. Middle and Broadway
1 f.. < r �. - Tax Increment Finance District
Studv Area
1.:. r
yet
r ,
.1153
i
A.
,x
1 inch = 100 feet
Aerial Photo: Spring, 2018
�! Date of Map: April 29, 2020
Page 9
Exhibit 2
Photographic Documentation
Page 10
430 Broadway
Page 11
430 Broadway
Page 12
430 Broadway
T.
P.
ilk.f
Page 13
lk�
Page 13
430 Broadway
Page 14
430 Broadway
Page 15
430 Broadway
Page 16
430 Broadway
Page 17
222 N. Middle St.
Page 18
222 N. Middle
Page 19
222 N. Middle
Page 20
222 N. Middle
Page 21
230 N. Middle St.
Page 22
260 N. Middle St.
Page 23
260 N. Middle
Page 24
la
260 N. Middle
Page 26
260 N. Middle
w.
Page 27
APPENDIX 3
DEVELOPER AFFIDAVIT
DEVELOPER'S AFFIDAVIT
STATE OF MISSOURI )
) SS
COUNTY OF CAPE GIRARDEAU )
AFFIDAVIT
I, the undersigned, am over the age of 18 and have personal knowledge of the matters stated
herein.
The undersigned swears, affirms and certifies the following to be true to induce the
approval of tax increment financing for the "Redevelopment Area" described in The North
Middle/Broadway Tax Increment Financing Redevelopment Plan (the "Plan"):
I am the Co -President of Rust Communications, Inc. (the "Developer").
2. The provisions of Section 99.810.1(1) of the Revised Statutes of Missouri, as
amended, have been met;
3. To the best of my knowledge, based upon the information available to me, the
Redevelopment Area is a "blighted area" as defined in Section 99.805 of the Revised Statutes of
Missouri, as amended, has not been subject to growth and development through investment by
private enterprise, and would not reasonably be anticipated to be developed without the adoption
of tax increment financing; and
4. The Developer would not construct the "Redevelopment Project" described in the
Plan without tax increment financing.
RUST COMMUNICATIONS, INC.
By:
Name: Rex D. Rust
Title: Co -President
�,t
Subscribed and sworn to before me this 1 day of May, 2020.
Notary Public
My commission expires on: 6126i 6,26)
JANICE E. 'VOSS
Nonary Pudlle - Nnlary Snell
STATE OF Misr,0UR,
Cnmmissloned IOf Cape alf4rd!e'su Caunly
IwSy C�rnmissron Exp=ires: Aiugus12q, 2020
C®mmis9Eon # 183®OSa1
APPENDIX 4
RELOCATION POLICY
HILL NO. 18-34
0RDINANcF NO. 7
AIN ORDINANCE A-DOP'l ING A RELOCATION POLICY IN CONNECTION
WITii REDEVELOP N -TENT PRcJYTTS
N'7 IiEREAS, the City of Cape Girardeau, Missouri (the -Ci ty'� may, from time to time„ desire to
undertake cerrain redevelppnitnt projects pursuant to Chapters 99, 100 and 353, R.SMo., as amended; and
WHEREAS, Sections 523.200 through 523.215, RSMor_, as amended (the -Relocation Assistant
Act'�, mandates that the City establish a relocation policy including minimum provisions and
roquirements set forth in the RelugAtion Assistance Act in connection with the implemcntstion of the
redevelopment activities authotiz6d pm -stunt to Chapters 99, 10, and 353 RSMei , �u amended.
NOW, THEREFORE, BE IT ORDA0113 BY THE COUNCIL OF T11TE CITY OF CAPE
GIRARDEAU, MISSOURI, AS FOLLOWS
5,eetr im 1. Tlrs City adapts by reference, as it fully set forth herein, Sections 523.
through 523,215, IISMa., as may lar amended from time to time as the Relocation PrJi;7y for the City,
Section 2. In fhc event that property is to be acquired without federal assistance pursuant to
Chaptcrs 99, 100, 353, RS]Vo., as amended, the City Marta
ster or his desifrnree is dittectnd to take all
necessary steps to identify the special needs of displaced persons and acactammodatc those needs within
the project's relocation plan. Furthermore, the City Manager or ]pis designee is directed to develop a
program for the referrals of displaced peons and businesses to suitable replacement accommodations in
con formityr with the requiremerrts of Relot:ation Assistance Act,
Sectio 1 This ordinance shall be in full fiance and effect ten days alter its passape acrd
approval.
PASSE=D AND APPROVED THIS DAY OF r CJLi , 2018,
Attest;.
ruse Taylor, &puty . ty lark
K)b Fox, Mayor
I,11;j=1LlIQ :V
PROJECT FINANCING COMMITMENT
March 9th, 2020
Mr. Scott A. Meyer
City Manager
401 Independence
Cape Girardeau, MO 63701
Re: Rust Communications, Inc.
Dear Mr. Meyer:
—` THE
�.:., BANK
O F MIS SOUR I
We are familiar with the project proposed by Rust Communications, Inc consisting of the development
and rehabilitation of an approximately 32,500 square feet of buildings and surrounding land located at
260 N Middle Street, 230 N Middle Street, 222 N Middle Street, 440 Broadway and 430 Broadway in
Cape Girardeau.
We are pleased to announce our commitment to finance this project, contingent upon final board and
loan committee approval and supported by loan documentation typical of a transaction of this size and
nature.
If the City of Cape Girardeau provides tax increment financing to Rust Communications, Inc. and all
other developmental issues are satisfactorily addressed Rust Communications, Inc. has the financial
ability to proceed with the proposed project.
Sincerely,
- e *
Jeff Hotop
Community Bank President
Bank of Missouri
121
Member FDIC LEND
3427 William St. / Cape Girardeau, MO 63701 / 573.335.3100 / BankofMisscuri.com