HomeMy WebLinkAboutOrd.5340.09-21-2020 BILL NO. 20-134 ORDINANCE NO.,5,_3.0
AN ORDINANCE DESIGNATING A PORTION OF THE CITY OF CAPE
GIRARDEAU, MISSOURI, AS A REDEVELOPMENT AREA; APPROVING
THE 811 BROADWAY TAX INCREMENT FINANCING REDEVELOPMENT
PLAN; MAKING FINDIlNGS 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 "811
Broadway Tax Increment Financing Redevelopment Plan," attached hereto and incorporated herein by
this reference (the "Redevelopment Plan"), for an area consisting of property located at 811 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 property to
accommodate retail and residential uses (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 August 19, 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 August 19, 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
after the 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 "811 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 811 Broadway Special Allocation Fund.
Section 8. The 811 Broadway Special Allocation Fund is hereby established. The 811
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 811 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.
(A\ct& PASSED AND APP'OVED by the City Council of the City of Cape Girardeau, Missouri, this
day of c 3111 11,\Xe. 2020.
Aer -
Bob Fo•IP-Mayory
(Seal)
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4iti/Ai_i_..j -c 14 41 V 0
:ruce Taylor, D ty City Clerk
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811 Broadway
Tax Increment Financing
Redevelopment Plan
Presented to the Tax Increment Financing Commission
of the City of Cape Girardeau, Missouri
Prepared by:
IL OR�EBELL
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 the American Legion building at 811
Broadway in the City of Cape Girardeau, Missouri (the "City").
The American Legion building is currently vacant and in a state of disrepair.
Restoreme LLC (the "Developer") has proposed using tax increment
financing to fund a portion of the costs associated with redeveloping the
building to accommodate six luxury apartments and two commercial spaces
(which will initially be occupied by a coffee shop) (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
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.
811 Broadway
Tax Increment Financing
Redevelopment Plan
Page 1
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 Parcel No. 211060013003000000 located
at 811 Broadway in the City, which contains the vacant, approximately
12,000 square foot American Legion building.
A map and legal description of the Redevelopment Area are included as
Appendix 1 attached hereto.
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
811 Broadway
Tax Increment Financing
Redevelopment Plan
Page 2
2.0
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
renovating the interior and exterior of 811 Broadway to accommodate
commercial lease spaces (initially, a coffee shop) and two luxury
apartments on the first floor and four additional luxury apartments on the
second floor.
If this Redevelopment Plan is approved, the Developer expects to
commence construction in 2020 and to complete construction by
January 1, 2022.
Completion of the Redevelopment Project is not expected to result in the
relocation of any existing residents or businesses because the American
Legion building is 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.
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 $1,290,471, as delineated below:
811 Broadway
Tax Increment Financing
Redevelopment Plan
Page 3
Cost Description
Estimated Cost
Acquisition of Building & Refinancing
$ 391,857
TIF Creation
5,000
Design Architect
6,366
Survey/Environmental Screening
1,350
Historical Application & Grant Consultant
12,012
Business Formation
5,673
Engineering & Mechanical
10,300
Coffee Shop Buildout
140,163
Construction
665,950
Construction Interest
23,800
Legal, Accountant & Other Professional Fees
28,000
Total
$1,290,471
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, state and federal historic tax credits, and grants. TIF
funding available under this Redevelopment Plan to pay Redevelopment
Project costs will not exceed $476,689 plus interest (however, the principal
amount of any notes, bonds or other obligations secured by TIF revenues,
if any, may exceed $476,689 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:
811 Broadway
Tax Increment Financing
Redevelopment Plan
Page 4
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);
B. state and federal historic tax credits (if awarded); and
C. grants (if awarded).
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
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.
Any use of historic tax credits will be subject to the applicable laws and
regulations governing the use of such tax credits.
2.6 Evidence of Commitment to Finance Project Costs. A letter from MRV
Banks 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 $14,350.
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 $245,552.
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 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.
811 Broadway
Tax Increment Financing
Redevelopment Plan
Page 5
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:
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 by January 1, 2022. 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
811 Broadway
Tax Increment Financing
Redevelopment Plan
Page 6
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.
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 and residential space and will not include the initial
development or redevelopment of any gambling establishment.
811 Broadway
Tax Increment Financing
Redevelopment Plan
Page 7
APPENDIX 1
MAP AND LEGAL DESCRIPTION OF REDEVELOPMENT AREA
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All that fractional part of Lots Numbered Twenty -Eight ( 8) and T'wenty-Nine (29),
in Range °"D', in the City and County of Cape Girardeau, Nfissouri, described as
follows:
Beginning at a point on the south lime of 13rcadway Street fifty-five and one-tenth
5. l feet cot of the Northwest corner of said Lot 29 in Range "ID", being the center
of the east wall of the brick building now st=ding on the premises just west of and
adjacent to the real estate herein described, said premises and build ing now being
owned by J.F. Anderson; thence rurx EHst along the south lire of Broadway 'Street 36
feet to the center line of the wall separating the building on the reel estate herein
dmribed and the Cape Theater and RmIty Company', thence South parallel with Ellis
Street 173-1/2 feet, thence West pra ilel with Broadway Street .3feet; thence North
parailel with Ellis Street l i3-fi feet to the Point of �Be&ning; the South l ()-Y7 feet of
the above described tract being part of the alley running east and west for the benefit
of all the ovmers ofsaid hats Twenty-eight (8) and Twenty-nine (29),
SUBJECT TO an easernent, or right to maintain curtain steps, in favor of Cape
Theater and fealty Comp y, as per conveyznce from said Charles 0. Hobbs to said
Company, recorded in Book 78 at Pagts 596-597.
APPENDIX 2
BLIGHT STUDY
[On file with the Deputy City Manager]
APPENDIX 3
DEVELOPER AFFIDAVIT
c i ATE OF MISSOURI
CCU" OF CAPE 15[HARDEAU
APPI AVrr
r, tha unders[grled, am aver the age of 18 years and have personal kAavw t g& of the
r71Attfr5 stated horeln-
1. 1 arri the President&Nvner of flestomroe LLC and
Speakeasy Colfee Co., and arm authorized to attest to the matters set forth
here -in-
_ Reca eme ti[_w ns the properf 1' Isxted at 1�11 Aro adwary St -in pa
Girardeau, Mlssourl No pcoperty has taut beeli'sublett trl gFOWlh arld
tleVeloprr wd through h1vesImerrt by prlwiite enterprise, apid WoUl d not
reasonably he antiripated to be developed tvllhout the adapiQorE of tax
li1q;rerrrent floandng.
Private T�arr1� Strza^nne Highhteatlrelr
5ulbscribed and srvom lu hetore me this day of 5 r 120211).
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My corrilmission expires on:
APPENDIX 4
RELOCATION POLICY
BILL NO. 18-89
AN ORDINANCE ADOPTLNr. A KlE.11AXATION POLICY IN CONNECTION
W1TR REDEVELOPMENT PR€I.JFCTS
V4'F[E EAS, the City of Capc Girardeau, Missouri (the" C'iZy'" may, frarrn tirne to rune, desire to
undetxake emain redevelopment projws pursuant to Chapters 99, 100 and 333, RSMo.. as amended; and
%VHERE4S, Sertinns 523-200 through 533.215, RSMo., as amended (tht: "Rrlixation Assistant
Act's, mandates that the City establish a relocation policy including rt Enirnurn pmvisivns and
rrquiremerkts set forth in the Rcica"tion Assistance: Act in connection with the implemmtsticrn of the
redevelopment acliviries auffioriz& punsuaw to Chapter 99, LM, and 353 RSMo., as amended.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCil, OF THE CITY OF CAPE
GIRARDEAU, MISSOM, AS FOLLOWS.
Section 1, The City adopts by reference, as it fully set forth herein, Seetic 523-2W
0wough 523,215. RSMo., as may lac amended from time to time as the Relocation Policy for the City,
Section L In the cvcnl that property is to be acquired without fedMl assistarkee pumu&nl to
Chapters 99, 10k 353, RSMo., as amended, rhe City Manager or his c_iesignac is directed to take all
necessary steps to identify die special needs of displaced persorns and a"Urrinvdaic those nccds within
the project's relocation p1wt. Furthermore, lKe City Manager or his designee is directed to develop a
program for the referrals of displaced prisons and busincsses to suitable replacement accommodations in
eonrormity with tike rNuircmenrs ofRe1mzicin Assistance Act.
S-ectiGu 3, This ordinance shall be in full force and effort tent days ager its passage ud
approval.
PASSED AND APFROVE10 THIS DAY OF 1J , 2018.
Attest,
race -'Mr, I?eputy . ty t Ierk
;W4
Bob Fox. Ma, nor
APPENDIX 5
PROJECT FINANCING COMMITMENT
BANKS
June 2, 2020
Mr. Scott A Meyer
City manager
401lndependence
Cape Girardeau, MC 63701
RE; Restore Nle, LLC f 811 Broadway, Gape GirardeaLi, MO
Year Mr. Meyer:
We are familiar with the project proposed, by Suzanne Hightowerr consisting of the
developrnentf rehahilltatlon of an approximately 11,556 square feat building at SSi Broadway in Crape
Girardeau, Missouri.
We are pleased to announce our commitment to finance the project, enntingent upon final loan
committee approval and supported by Ivan documentation typical of a tran5acticn of Ibis size and nature.
If the City of Cape Girardeau provides tarp Increment financing to Suzanne Hightower, and all other
Developmental issues are satisfactorily addressed,. Suzanne Hightower has the financial ability, to proceed
with the proposed project.
Sincerely,.
MRS' I anics
Robbie Guard
SVP, Market president
CITYOf CAPE
G I R A R D E A U
Cost -Benefit Analysis
for
811 Broadway
Tax Increment Financing
Redevelopment Plan
July 15, 2020
Prepared by:
GILMOkEBELL
1.0 Introduction
1.1 Purpose of Cost -Benefit Analysis. The Real Property Tax Increment
Allocation Redevelopment Act, Sections 99.800 to 99.865 of the Revised
Statutes of Missouri, as amended (the "TIF Act"), requires that, in
connection with the approval of a redevelopment plan, the governing body
of a municipality make the finding that:
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 [has been prepared]. 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
(Section 99.810.1(5) of the TIF Act).
The 811 Broadway Tax Increment Financing Redevelopment Plan (the
"Redevelopment Plan") has been prepared on behalf of the City of Cape
Girardeau, Missouri (the "City"). The purpose of this Cost -Benefit Analysis
is to satisfy the requirement in the TIF Act that a cost -benefit analysis be
prepared in connection with the proposed Redevelopment Plan.
1.2 Redevelopment Plan and Redevelopment Project. The
Redevelopment Project consists of renovating the interior and exterior of
811 Broadway to accommodate commercial lease spaces (initially, a
coffee shop) and two luxury apartments on the first floor and four
additional luxury apartments on the second floor.
The Redevelopment Plan contemplates that Restoreme LLC (the
"Developer") will undertake the Redevelopment Project and that tax
increment financing revenues will be used to fund a portion of the costs of
the Redevelopment Project.
1.3 Accuracy of Financial Projections. Information used to create the
financial projections contained in this Cost -Benefit Analysis was obtained
from the Developer, the Cape Girardeau County Assessor and the Cape
Girardeau Area Chamber of Commerce. However, the financial
projections are subject to numerous variables and assumptions, and no
guarantee can be made regarding the accuracy of the projections. Actual
performance of the Redevelopment Project over the period examined in
Cost -Benefit Analysis for
811 Broadway
Tax Increment Financing Redevelopment Plan
Page 1
this Cost -Benefit Analysis (i.e., 2020 — 2043) may be materially different
than the financial projections contained herein.
2.0 Economic and Fiscal Impact of the Redevelopment Project
2.1 Taxes Impacted by Tax Increment Financing. Pursuant to the TIF Act,
certain incremental real property taxes and sales taxes generated by the
Redevelopment Project for up to 23 years following approval of the
Redevelopment Project will, upon collection, be deposited into the City's
"Special Allocation Fund." As described in the Redevelopment Plan, the
City can then use moneys in the Special Allocation Fund to reimburse the
Developer directly for eligible Redevelopment Project costs or to pay debt
service on notes, bonds or other obligations issued to finance
Redevelopment Project costs. The specific tax revenues that will be
deposited in the Special Allocation Fund are described below.
A. Payments in Lieu of Taxes ("PILOTs'). The TIF Act provides
that 100% of certain real property taxes generated by the incremental
assessed value of the Redevelopment Project will be deposited in the
Special Allocation Fund and made available for the payment of eligible
Redevelopment Project costs. Tax revenues attributable to the "base"
assessed value (i.e., the assessed value prior to approval of the
Redevelopment Project by the City) will continue to be paid to the
applicable taxing districts. Under the TIF Act, the Commercial Surcharge,
the State of Missouri Blind Pension Fund tax and the Senate Bill 40
(Developmental Disabilities) tax are excluded from tax increment financing
and the revenues from those taxes attributable to both the base and
incremental assessed values will be paid to the applicable taxing districts.
Appendix 5 of this Cost -Benefit Analysis shows the estimated distribution
of PILOTs and taxes attributable to the "base" assessed value if the
Redevelopment Project is completed. These estimates are based on the
2019 property tax rates identified in Appendix 1, which have been
assumed to remain constant during the 23 -year tax increment financing
period, and the projected assessed values of the Redevelopment Project
identified in Appendix 2.
B. Economic Activity Taxes ("EATs'). The TIF Act provides that
50% of certain incremental economic activity tax revenues generated by
the Redevelopment Project will be deposited in the Special Allocation
Fund and made available for the payment of eligible Redevelopment
Project costs. Economic activity taxes include sales and utility taxes.
Taxing districts with economic activity taxes impacted by tax increment
financing will receive taxes equal to the amount of the applicable tax
Cost -Benefit Analysis for
811 Broadway
Tax Increment Financing Redevelopment Plan
Page 2
generated in the "base year" prior to the City's approval of the
Redevelopment Project (which, in this case is $0 because the
Redevelopment Area did not generate any EATs in 2019) and 50% of the
EATs generated above the "base year" value.
However, (1) the TIF Act excludes the State of Missouri sales tax from tax
increment financing and (2) the amount of utility taxes generated from the
Redevelopment Project is expected to be minimal compared to other tax
revenues and will be exceedingly difficult to accurately track. Accordingly,
the City will declare all utility tax revenues that would otherwise be
deposited into the Special Allocation Fund as "surplus" under the TIF Act,
allowing for those utility tax revenues to, effectively, be excluded from tax
increment financing. Because the distribution of utility tax revenues will
not be impacted by the Redevelopment Plan, this Cost -Benefit Analysis
does not contain any projections relating to utility tax revenues.
Appendix 6 of this Cost -Benefit Analysis shows the estimated generation
of sales taxes if the Redevelopment Project is completed and the portion
of those taxes "captured" by tax increment financing. These estimates are
based on the sales and gross receipt tax rates as of July 2020 identified in
Appendix 1, which have been assumed to remain constant during the 23 -
year tax increment financing period, and the projected taxable sales
produced by the Redevelopment Project identified in Appendix 2.
2.2 Taxes Not Impacted by Tax Increment Financing. During the 23 -year
tax increment financing term, taxing districts will receive the following
taxes, assessments and fees generated from the Redevelopment Project:
real property taxes attributable to the "base" assessed value (and
with respect to the Commercial Surcharge, State of Missouri Blind
Pension Fund and Senate Bill 40 (Developmental Disabilities)
taxes, real property taxes attributable to the then -current assessed
value);
sales taxes equal to the "base year" amount of the tax plus 50% of
the incremental sales tax revenue generated from the
Redevelopment Project after it is completed (and with respect to
the State of Missouri, 100% of the State's sales tax);
utility taxes (which, as noted above, will be treated as "surplus"
under the TIF Act and, effectively excluded from tax increment
financing);
Cost -Benefit Analysis for
811 Broadway
Tax Increment Financing Redevelopment Plan
Page 3
personal property taxes (which are not subject to tax increment
financing under the TIF Act);
income and withholding taxes (which are not subject to tax
increment financing under the TIF Act); and
assessments, building permit fees and other governmental fees
typically associated with projects similar to the Redevelopment
Project.
Estimates of real property taxes and sales taxes, net of tax increment
financing, are included in Appendix 5 and Appendix 6, respectively. This
Cost -Benefit Analysis does not include any estimates of personal property
taxes, income and withholding taxes or any other type of governmental
assessment or fee.
3.0 Build vs. No Build Scenario; Fiscal Impact. As required by the TIF Act, this
Cost -Benefit Analysis evaluates the economic impact on the applicable taxing
districts if the Redevelopment Project is built and is not built pursuant to the
Redevelopment Plan. Appendix 5 and Appendix 6 show the projected real
property tax and sales tax revenues if the Redevelopment Project is built (the
"Build Scenario"). Appendix 7 and Appendix 8 show the projected real property
and sales tax revenues if the Redevelopment Project is not built (the "No Build
Scenario"). Appendix 4 includes a side-by-side fiscal impact comparison of the
Build Scenario and No Build Scenario, delineated by total revenues generated by
each taxing district, real property tax and sales tax over the 23 -year term of tax
increment financing.
4.0 Evidence of Financial Feasibility. Attached as Appendix 9 are a sources/uses
table for the entire Redevelopment Project and calculations prepared by the
Developer detailing the financial feasibility of the Redevelopment Project. These
calculations illustrate a negative economic return on the Redevelopment Project
without TIF assistance and a positive economic return with TIF assistance. The
Redevelopment Project will be financially feasible if a sufficient positive economic
return is achievable. The Developer has indicated that it believes the
Redevelopment Project is feasible based on the positive return shown in
Appendix 9 if TIF assistance is provided.
Cost -Benefit Analysis for
811 Broadway
Tax Increment Financing Redevelopment Plan
Page 4
City of Cape Girardeau, Missouri
811 Tax Increment Financing Redevelopment Plan
Cost -Benefit Analysis
Appendix 9 — Financial Feasibility Information
(excerpted from Developer's TIF application)
City of Cape Girardeau, Missouri
811 Broadway Tax Increment Financing Redevelopment Plan
Cost -Benefit Analysis
Property Tax Rates (Tax Year 2019)
Taxing District
Rate
Cape Girardeau County - General Revenue
0.0670
Cape Girardeau County - Mental Health
0.0772
Cape Girardeau County - Public Health
0.0960
Cape Girardeau County - Senior Services
0.0478
Cape Girardeau City - General
0.3044
Cape Girardeau City - Health
0.0570
Cape Girardeau School District
4.1567
Cape Girardeau Public Library
0.3152
State of Missouri
0.0300
Senate Bill 40
0.0553
Commercial Surcharge
0.3690
Total Commercial Tax Rate
5.5756
Total Residential Tax Rate
5.2066
TIF -Eligible Tax Rate
5.1213
Appendix 1 - Tax Rates
not
subject
to TIF
Sales Tax Rates (as of July 2020)
Taxing District
Rate
Cape Girardeau County - General
1.000%
Cape Girardeau County - Public Safety
0.500%
Cape Girardeau City - General
1.000%
Cape Girardeau City - Cap. Imp.
0.500%
Cape Girardeau City - Fire
0.250%
Cape Girardeau City - Parks/Stormwater
0.500%
Cape Girardeau City - Transportation
0.500%
Downtown CID
0.500%
State of Missouri
4.225%
Total Tax Rate
8.975%
TIF -Eligible Tax Rate
4.750%
Cape Girardeau City - Restaurant Gross Rpts.
1.000%
TIF -Eligible Restaurant Tax Rate
5.750%
Assumptions:
1. The tax rates listed above will remain constant from 2020 through 2043.
2. Cape Girardeau County's public safety sales tax will be effective on October 1, 2020.
not
} subject
to TIF
City of Cape Girardeau, Missouri
811 Broadway Tax Increment Financing Redevelopment Plan
Cost -Benefit Analysis
Appendix 2 - Assessed Value and Taxable Sales Projections
Base EAV (2019):
$ 14,350
Base Taxable Sales (2019):
$ 0
Year
Assessed Value
Taxable Sales
2020
$ 14,350
$ 0
2021
14,350
0
2022
245,552
231,000
2023
249,235
233,310
2024
249,235
235,643
2025
252,974
238,000
2026
252,974
240,380
2027
1 256,768
242,783
2028
256,768
245,211
2029
260,620
247,663
2030
260,620
250,140
2031
264,529
252,641
2032
264,529
255,168
2033
268,497
257,719
2034
268,497
260,297
2035
272,525
262,900
2036
272,525
265,529
2037
276,613
268,184
2038
276,613
270,866
2039
280,762
273,574
2040
280,762
276,310
2041
284,973
279,073
2042
284,973
281,864
2043
289,248
213,512
75% of full
year taxable
sales due to
mid -year TIF
Assumptions: expiration
1. TIF will begin by October 1, 2020.
2. The Redevelopment Project will be substantially completed and the coffee shop will be open by
January 1, 2022.
3. Beginning in 2023, the assessed value will grow by 1.5% each reassessment year (i.e. each odd -
numbered year).
4. Beginning in 2023, taxable sales will increase by 1% per year.
5. TIF is assumed to expire in September 2043.
6. 100% of taxable sales will be subject to the City's restaurant gross receipts tax.
City of Cape Girardeau, Missouri
811 Broadway Tax Increment Financing Redevelopment Plan
Cost -Benefit Analysis
Appendix 3 - Total Taxes and Tax Increment Financing Revenues
Year
Total
Real Property Taxes
TIF Portion Tax. Dist. Portion
Sales and Restaurant Taxes
Total TIF Portion Tax. Dist. Portion
Total TIF
Revenues
Total Revenues to
Taxing Districts
2020
$ 800
$ 0 $
800 $
0 $
0 $
0
$ 0
$ 800
2021
800
0
800
0
0
0
0
800
2022
13,011
11,841
1,171
23,042
6,641
16,401
18,482
17,572
2023
13,207
12,029
1,177
23,273
6,708
16,565
18,737
17,742
2024
13,207
12,029
1,177
23,505
6,775
16,731
18,804
17,908
2025
13,405
12,221
1,184
23,740
6,842
16,898
19,063
18,082
2026
13,405
12,221
1,184
23,978
6,911
17,067
19,132
18,251
2027
13,606
12,415
1,191
24,218
6,980
17,238
19,395
18,428
2028
13,606
12,415
1,191
24,460
7,050
17,410
19,465
18,601
2029
13,810
12,612
1,198
24,704
7,120
17,584
19,733
18,782
2030
13,810
12,612
1,198
24,951
7,192
17,760
19,804
18,958
2031
14,017
12,812
1,205
25,201
7,263
17,938
20,076
19,142
2032
14,017
12,812
1,205
25,453
7,336
18,117
20,149
19,321
2033
14,227
13,016
1,212
25,708
7,409
18,298
20,425
19,510
2034
14,227
13,016
1,212
25,965
7,484
18,481
20,499
19,693
2035
14,441
13,222
1,219
26,224
7,558
18,666
20,780
19,885
2036
14,441
13,222
1,219
26,486
7,634
18,853
20,856
20,071
2037
14,657
13,431
1,226
26,751
7,710
19,041
21,142
20,267
2038
14,657
13,431
1,226
27,019
7,787
19,231
21,219
20,457
2039
14,877
13,644
1,233
27,289
7,865
19,424
21,509
20,657
2040
14,877
13,644
1,233
27,562
7,944
19,618
21,588
20,851
2041
15,100
13,859
1,241
27,838
8,023
19,814
21,883
21,055
2042
15,100
13,859
1,241
28,116
8,104
20,012 1
21,963
1 21,253
2043
15,327
0
15,327
28,397
6,138
22,259 1
6,138
1 37,585
TOTAL
$ 312,632
$ 270,363 $
42,268 $
563,880 $
160,476 $
403,405 1
$ 430,839
1 $ 445,673
1. No PILOTS are captured by TIF in 2043 because TIF will expire prior to payment of 2043 real property taxes. Capture of sales taxes by TIF is
assumed to expire in September 2043. Full year 2043 real property and sales tax revenues are shown.
2. The "Tax. Dist. Portion" includes (1) the "Base Taxes" and "Tax Dist. Portion" columns in Appendix 5 and Appendix 6 with respect to taxing districts
whose taxes are subject to TIF and (2) the "Taxes (No TIF)" columns in Appendix 5 and Appendix 6 with respect to taxing districts whose taxes are not
subject to TIF.
City of Cape Girardeau, Missouri
The North Middle/Broadway Tax Increment Financing Redevelopment Plan
Cost -Benefit Analysis
Appendix 4 - Build vs No Build Comparison
Taxing District
Tax
Build Scenario Revenues
No Build Scenario Revenues
Cape Girardeau
County
General Rev. Prop. Tax
$
415
$
243
Mental Health Prop. Tax 478
279
Public Health Prop. Tax 595
348
Senior Serv. Prop. Tax 296
173
General Rev. Sales Tax 28,621
0
Public Safety Sales Tax 14,310
0
Subtotal $ 44,714 $
1,043
Cape Girardeau City
General Rev. Prop. Tax
$
1,885
$
1,102
Health Prop. Tax 353 $
206
General Rev. Sales Tax 28,621 $
0
Cap. Imp. Sales Tax 14,310 $
0
Fire Sales Tax 7,155 $
0
Parks/Storm Sales Tax 14,310 $
0
Transp. Sales Tax 14,310 $
0
Restaurant Gross Rpts. 28,621 $
0
Subtotal $ 109,565 $
1,308
Cape Girardeau
School District
Prop. Tax
$
25,742
$
15,048
Cape Girardeau
Public Library
Prop. Tax
$
1,952
$
1,141
Senate Bill 40
Prop. Tax
$
3,262
$
200
Downtown CID
Sales Tax
$
14,310
$
0
Comm. Surcharge
Prop. Tax
$
5,521
$
1,336
State of Missouri
Prop. Tax
$
1,770
$
109
Sales Tax 238,837
0
Subtotal $ 240,606 $
109
TOTAL
$
445,673
$
20,184
1. The "Build Scenario Revenues" include (1) the "Base Taxes" and "Tax Dist. Portion" columns in Appendix
5 and Appendix 6 with respect to taxing districts whose taxes are subject to TIF and (2) the "Taxes (No TIF)"
columns in Appendix 5 and Appendix 6 with respect to taxing districts whose taxes are not subject to TIF.
Real property taxes and sales taxes generated through the end of 2043 (i.e., after TIF expiration in
September 2043) are included.
2. The "No Build Scenario Revenues" include the real property tax and sales tax revenues shown in
Appendix 7 and Appendix 8.
City of Cape Girardeau, Missouri
811 Broadway Tax Increment Financing Redevelopment Plan
Cost -Benefit Analysis
Appendix 5 - Build Scenario: Real Property Tax Revenues and PILOTS (Page 1 of 2)
1. TIF is assumed to expire in September 2043, prior to the payment of 2043 real property taxes. Accordingly, all 2043 real property taxes will be paid to the taxing districts and
will not be subject to capture by TIF.
2. Assumes that 100% of the Redevelopment Area is assessed as commercial property prior to completion of the Redevelopment Project and 25% of the Redevelopment Area is
assessed as commercial property after completion of the Redevelopment Project. The commercial surcharge is only applicable to property assessed as commercial.
3. Estimated revenues do not include deductions for assessment or collection fees, if any.
General
Cape Girardeau County
Mental Health Public Health
Senior Services
Senate
Bill 40
Commercial
Surcharge
Year
Base Taxes
PILOTs
Base Taxes
PILOTS
Base Taxes
PILOTS
Base Taxes
PILOTS
Taxes (No TIF) Taxes (No TIF)
2020
$ 10 $
0
$ 11
$ 0
$ 14
$ 0
$ 7
$ 0
$ 8
$ 53
2021
10
0
11
0
14
0
7
0
8
53
2022
10
155
11
178
14
222
7
111
136
227
2023
10
157
11
181
14
22S
7
112
138
230
2024
10
157
11
181
14
225
7
112
138
230
2025
10
160
11
184
14
229
7
114
140
233
2026
10
160
11
184
14
229
7
114
140
233
2027
10
162
11
187
14
233
7
116
142
237
2028
10
162
11
187
14
233
7
116
142
237
2029
10
165
11
190
14
236
7
118
144
240
2030
10
165
11
190
14
236
7
118
144
240
2031
10
168
11
193
14
240
7
120
146
244
2032
10
168
11
193
14
240
7
120
146
244
2033
10
170
11
196
14
244
7
121
148
248
2034
10
170
11
196
14
244
7
121
148
248
2035
10
173
11
199
14
248
7
123
151
251
2036
10
173
11
199
14
248
7
123
151
251
2037
10
176
11
202
14
252
7
125
153
255
2038
10
176
11
202
14
252
7
125
153
255
2039
10
178
11
206
14
256
7
127
155
259
2040
10
178
11
206
14
256
7
127
155
259
2041
10
181
11
209
14
260
7
129
158
263
2042
10
181
11
209
14
260
7
129
158
263
2043
194
0
223
0
278
0
138
0
160
267
TOTAL
$ 415 $
3,537
$ 478
$ 4,076
$ 595
$ 5,068
$ 296
$ 2,523
$ 3,262
$ 5,521
1. TIF is assumed to expire in September 2043, prior to the payment of 2043 real property taxes. Accordingly, all 2043 real property taxes will be paid to the taxing districts and
will not be subject to capture by TIF.
2. Assumes that 100% of the Redevelopment Area is assessed as commercial property prior to completion of the Redevelopment Project and 25% of the Redevelopment Area is
assessed as commercial property after completion of the Redevelopment Project. The commercial surcharge is only applicable to property assessed as commercial.
3. Estimated revenues do not include deductions for assessment or collection fees, if any.
City of Cape Girardeau, Missouri
811 Broadway Tax Increment Financing Redevelopment Plan
Cost -Benefit Analysis
Appendix 5 - Build Scenario: Real Property Taxes and PILOTS (Page 2 of 2)
1. TIF is assumed to expire in September 2043, prior to the payment of 2043 real property taxes. Accordingly, all 2043 real property taxes will be paid to the taxing districts
and will not be subject to capture by TIF.
2. Assumes that 100% of the Redevelopment Area is assessed as commercial property prior to completion of the Redevelopment Project and 25% of the Redevelopment Area
is assessed as commercial property after completion of the Redevelopment Project. The commercial surcharge is only applicable to property assessed as commercial.
3. Estimated revenues do not include deductions for assessment or collection fees, if any.
Cape Girardeau City
General Health
Cape Girardeau School
District
Cape Girardeau
Public Library
State of
Missouri
Year
Base Taxes
PILOTS
Base Taxes PILOTS
Base Taxes
PILOTS
Base Taxes
PILOTs
Taxes (No TIF)
2020
$ 44
$ 0
$ 8 $
0
$ 596 $
0
$ 45
$ 0
$ 4
2021
44
0
8
0
596
0
45
0
4
2022
44
704
8
132
596
9,610
45
729
74
2023
44
715
8
134
596
9,763
45
740
75
2024
44
715
8
134
596
9,763
45
740
75
2025
44
726
8
136
596
9,919
45
752
76
2026
44
726
8
136
596
9,919
45
752
76
2027
44
738
8
138
596
10,077
45
764
77
2028
44
738
8
138
596
10,077
45
764
77
2029
44
750
8
140
596
10,237
45
776
78
2030
44
750
8
140
596
10,237
45
776
78
2031
44
762
8
143
596
10,399
45
789
79
2032
44
762
8
143
596
10,399
45
789
79
2033
44
774
8
145
596
10,564
45
801
81
2034
44
774
8
145
596
10,564
45
801
81
2035
44
786
8
147
596
10,732
45
814
82
2036
44
786
8
147
596
10,732
45
814
82
2037
44
798
8
149
596
10,901
45
827
83
2038
44
798
8
149
596
10,901
45
827
83
2039
44
811
8
152
596
11,074
45
840
84
2040
44
811
8
152
596
11,074
45
840
84
2041
44
824
8
154
596
11,249
45
853
85
2042
44
824
8
154
596
11,249
45
853
85
2043
880
0
165
0
12,023
0
912
0
87
TOTAL
$ 1,885
$ 16,070
$ 353 $
3,009
$ 25,742 $
219,440
$ 1,952
$ 16,640
$ 1,770
1. TIF is assumed to expire in September 2043, prior to the payment of 2043 real property taxes. Accordingly, all 2043 real property taxes will be paid to the taxing districts
and will not be subject to capture by TIF.
2. Assumes that 100% of the Redevelopment Area is assessed as commercial property prior to completion of the Redevelopment Project and 25% of the Redevelopment Area
is assessed as commercial property after completion of the Redevelopment Project. The commercial surcharge is only applicable to property assessed as commercial.
3. Estimated revenues do not include deductions for assessment or collection fees, if any.
City of Cape Girardeau, Missouri
811 Broadway Tax Increment Financing Redevelopment Plan
Cost -Benefit Analysis
Appendix 6 - Build Scenario: Economic Activity Tax Revenues (Page 1 of 2)
1. TIF is assumed to expire in September 2043. 2043 totals reflect a full year of tax collection, but only a partial year of TIF capture.
2. Estimated revenues do not include any deductions for collection fees or early pay discounts.
General
Cape Girardeau County
Public Safety
Downtown
CID
State of
Missouri
Year
Tax. Dist. Portion
TIF Portion
Tax. Dist. Portion TIF Portion
Tax. Dist. Portion
TIF Portion
Taxes (No TIF)
2020
$ 0$
0$
0$
0$
0$
0$
0
2021
0
0
0
0
0
0
0
2022
1,155
1,155
578
578
578
578
9,760
2023
1,167
1,167
583
583
583
583
9,857
2024
1,178
1,178
589
589
589
589
9,956
2025
1,190
1,190
595
595
595
595
10,055
2026
1,202
1,202
601
601
601
601
10,156
2027
1,214
1,214
607
607
607
607
10,258
2028
1,226
1,226
613
613
613
613
10,360
2029
1,238
1,238
619
619
619
619
10,464
2030
1,251
1,251
625
625
625
625
10,568
2031
1,263
1,263
632
632
632
632
10,674
2032
1,276
1,276
638
638
638
638
10,781
2033
1,289
1,289
644
644
644
644
10,889
2034
1,301
1,301
651
651
651
651
10,998
2035
1,314
1,314
657
657
657
657
11,108
2036
1,328
1,328
664
664
664
664
11,219
2037
1,341
1,341
670
670
670
670
11,331
2038
1,354
1,354
677
677
677
677
11,444
2039
1,368
1,368
684
684
684
684
11,559
2040
1,382
1,382
691
691
691
691
11,674
2041
1,395
1,395
698
698
698
698
11,791
2042
1,409
1,409
705
705
705
705
11,909
2043
1,779
1,068
890
534
890
534
12,028
TOTAL
$ 28,621
$ 27,909
$ 14,310 $
13,954
$ 14,310
$ 13,954
$ 238,837
1. TIF is assumed to expire in September 2043. 2043 totals reflect a full year of tax collection, but only a partial year of TIF capture.
2. Estimated revenues do not include any deductions for collection fees or early pay discounts.
City of Cape Girardeau, Missouri
811 Broadway Tax Increment Financing Redevelopment Plan
Cost -Benefit Analysis
Appendix 6 - Build Scenario: Economic Activity Tax Revenues (Page 2 of 2)
1. TIF is assumed to expire in September 2043. 2043 totals reflect a full year of tax collection, but only a partial year of TIF capture.
2. Estimated revenues do not include any deductions for collection fees or early pay discounts.
City of Cape Girardeau
General
Capital Improvements
Fire Protection
Parks/Stormwater
Transportation
Restaurant Gross Receipts
Year
Tax. Dist. Portion TIF Portion
Tax. Dist. Portion
TIF Portion
Tax. Dist. Portion
TIF Portion
Tax. Dist. Portion
TIF Portion
Tax. Dist. Portion TIF Portion
Tax. Dist. Portion
TIF Portion
2020
$ 0$
0$
0$
0$
0$
0$
0$
0$
0$
0$
0$
0
2021
0
0
0
0
0
0
0
0
0
0
0
0
2022
1,155
1,155
578
578
289
289
578
578
578
578
1,155
1,155
2023
1,167
1,167
583
583
292
292
583
583
583
583
1,167
1,167
2024
1,178
1,178
589
589
295
295
589
589
589
589
1,178
1,178
2025
1,190
1,190
595
595
297
297
595
595
595
595
1,190
1,190
2026
1,202
1,202
601
601
300
300
601
601
601
601
1,202
1,202
2027
1,214
1,214
607
607
303
303
607
607
607
607
1,214
11214
2028
1,226
1,226
613
613
307
307
613
613
613
613
1,226
1,226
2029
1,238
1,238
619
619
310
310
619
619
619
619
1,238
1,238
2030
1,251
1,251
625
625
313
313
625
625
625
625
1,251
1,251
2031
1,263
1,263
632
632
316
316
632
632
632
632
1,263
1,263
2032
1,276
1,276
638
638
319
319
638
638
638
638
1,276
1,276
2033
1,289
1,289
644
644
322
322
644
644
644
644
1,289
1,289
2034
1,301
1,301
651
651
325
325
651
651
651
651
1,301
1,301
2035
1,314
1,314
657
657
329
329
657
657
657
657
1,314
1,314
2036
1,328
1,328
664
664
332
332
664
664
664
664
1,328
1,328
2037
1,341
1,341
670
670
335
335
670
670
670
670
1,341
1,341
2038
1,354
1,354
677
677
339
339
677
677
677
677
1,354
1,354
2039
1,368
1,368
684
684
342
342
684
684
684
684
1,368
1,368
2040
1,382
1,382
691
691
345
345
691
691
691
691
1,382
1,382
2041
1,395
1,395
698
698
349
349
698
698
698
698
1,395
1,395
2042
1,409
1,409
705
705
352
352
705
705
705
705
1,409
1,409
2043
1,779
1,068
890
534
445
267
890
534
890
534
1,779
1,068
TOTAL
$ 28,621 $
27,909
$ 14,310
$ 13,954
$ 7,155
$ 6,977
$ 14,3101
$ 13,954
$ 14,3101 $
13,954
1 $ 28,6211
$ 27,909
1. TIF is assumed to expire in September 2043. 2043 totals reflect a full year of tax collection, but only a partial year of TIF capture.
2. Estimated revenues do not include any deductions for collection fees or early pay discounts.
City of Cape Girardeau, Missouri
811 Broadway Tax Increment Financing Redevelopment Plan
Cost -Benefit Analysis
Appendix 7 - No Build Scenario: Real Property Taxes
Year
General
Cape Girardeau County
Mental Health Public Health
Senior Serv.
Cape Girardeau City
General Health
School
District
Public
Library
Senate
Bill 40
State of
Missouri
Comm.
Surcharge
2020
$ 10
$ 11
$ 14
$ 7
$ 44
$ 8
$ 596
$ 45
$ 8
$ 4
$ 53
2021
10
11
14
7
44
8
596
45
8
4
53
2022
10
11
14
7
44
8
596
45
8
4
53
2023
10
11
14
7
44
8
596
45
8
4
53
2024
10
11
14
7
44
8
596
45
8
4
53
2025
10
11
14
7
45
8
614
47
8
4
55
2026
10
11
14
7
45
8
614
47
8
4
55
2027
10
11
14
7
45
8
614
47
8
4
55
2028
10
11
14
7
45
8
614
47
8
4
55
2029
10
11
14
7
45
8
614
47
8
4
55
2030
10
11
14
7
45
8
614
47
8
4
55
2031
10
12
15
7
46
9
633
48
8
5
56
2032
10
12
15
7
46
9
633
48
8
5
56
2033
10
12
15
7
46
9
633
48
8
5
56
2034
10
12
15
7
46
9
633
48
8
5
56
2035
10
12
15
7
46
9
633
48
8
5
56
2036
10
12
15
7
46
9
633
48
8
5
56
2037
11
12
15
7
48
9
652
49
9
5
58
2038
11
12
15
7
48
9
652
49
9
5
58
2039
11
12
15
7
48
9
652
49
9
5
58
2040
11
12
15
7
48
9
652
49
9
5
58
2041
11
12
15
7
48
9
652
49
9
5
58
2042
11
12
15
7
48
9
652
49
9
5
58
2043
11
12
16
8
49
9
671
51
9
5
60
TOTAL
1 $ 243
$ 279
$ 348
$ 173
$ 1,102
$ 206
$ 15,048
$ 1,141
$ 200
$ 109
$ 1,336
Assumptions:
1. The property will remain vacant. Increases in 2025, 2031, 2037 and 2043 are the result of inflation.
2. Because the property will be assessed as commercial, it will be subject to the commercial surcharge.
3. Estimated revenues do not include deductions for assessment or collection fees, if any.
City of Cape Girardeau, Missouri
811 Broadway Tax Increment Financing Redevelopment Plan
Cost -Benefit Analysis
Appendix 8 - No Build Scenario: Sales Taxes
Assumption:
1. No sales taxes are expected to be generated in the Redevelopment Area if the Redevelopment Project is not built.
.• Girardeau County
Cape Girardeau City
Downtown
CID
1
1
1�
1
1
1
��
•
Assumption:
1. No sales taxes are expected to be generated in the Redevelopment Area if the Redevelopment Project is not built.
RESOLUTION OF THE TAX INCREMENT FINANCING
COMMISSION OF THE CITY OF CAPE GIRARDEAU,
MISSOURI, APPROVING THE 811 BROADWAY TAX
INCREMENT FINANCING REDEVELOPMENT PLAN;
DESIGNATING THE REDEVELOPMENT AREA DESCRIBED
THEREIN; APPROVING THE REDEVELOPMENT PROJECT
DESCRIBED THEREIN; AND EXPRESSING ITS
RECOMMENDATIONS TO THE CITY COUNCIL OF CAPE
GIRARDEAU, MISSOURI.
WHEREAS, the City Council of the City of Cape Girardeau, Missouri, has created the Tax
Increment Financing Commission of the City of Cape Girardeau, Missouri (the "TIF Commission"); and
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 the TIF Commission to
hold public hearings with respect to proposed redevelopment areas, redevelopment plans and
redevelopment projects and to make recommendations thereon to the City Council; and
WHEREAS, the TIF Commission has reviewed a plan for redevelopment known as "811
Broadway Tax Increment Financing Redevelopment Plan," attached as Exhibit A hereto and incorporated
herein by this reference (the "Redevelopment Plan"), for an area consisting of property located at 811
Broadway in the City of Cape Girardeau (as further described on Appendix 1 of the Redevelopment Plan,
the "Redevelopment Area"); and
WHEREAS, the Redevelopment Plan contemplates redeveloping the Redevelopment Area to
accommodate retail space and apartments (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 August 19, 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;
NOW, THEREFORE, BE IT RESOLVED BY THE TAX INCREMENT FINANCING
COMMISSION OF THE CITY OF CAPE GIRARDEAU, MISSOURI, AS FOLLOWS:
1. The Redevelopment Plan, the Redevelopment Area described therein and the
Redevelopment Project are hereby adopted and approved.
2. The TIF Commission hereby finds that:
a. The Redevelopment Area on the whole is a "blighted area," as defined in Section
99.805(1) of the Act, 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. The Redevelopment Plan includes, and the TIF Commission hereby
finds and adopts by reference, (i) a detailed description of the factors that qualify the
Redevelopment Area and 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) of the Act have been
met.
b. The Redevelopment Plan conforms to the comprehensive plan for the
development of the municipality as a whole.
C. The estimated dates of completion of the Redevelopment Project and retirement
of obligations incurred to finance redevelopment project costs have been stated in the
Redevelopment Plan, and these dates, with respect to the Redevelopment Project, are no more
than 23 years from the adoption of the ordinance approving the Redevelopment Project. No
ordinance approving the Redevelopment Project shall be adopted later than ten years from the
adoption of the ordinance approving the Redevelopment Plan.
d. A plan has been developed for relocation assistance for businesses and
residences.
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 as Exhibit B 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 if the Redevelopment Project 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. The TIF
Commission hereby finds that the Redevelopment Project, as proposed, is financially feasible.
f. The Redevelopment Plan does not include the initial development or
redevelopment of any gambling establishment.
g. The Redevelopment Area includes only those parcels of real property and
improvements thereon directly and substantially benefited by the proposed Redevelopment
Proj ect.
3. The TIF Commission recommends to the City Council that the City Council adopt
ordinances in the form required by the Act to:
a. Approve the Redevelopment Plan.
b. Approve and designate the Redevelopment Area as a "redevelopment area" as
provided in the Act.
Approve the Redevelopment Project.
d. Adopt tax increment financing with respect to the Redevelopment Area and the
Redevelopment Project by passage of an ordinance complying with the terms of Section 99.845
of the Act.
4. The officers of the TIF Commission are hereby authorized and directed to execute all
documents and take such steps as they deem necessary and advisable to carry out and perform the purpose
of this Resolution.
5. The sections of this Resolution shall be severable. If any section of this Resolution is
found by a court of competent jurisdiction to be invalid, the remaining sections shall remain valid, unless
the court finds that the valid sections are so essential to and inseparably connected with and dependent
upon the void section that it cannot be presumed that the TIF Commission has or would have enacted the
-2-
valid sections without the void ones, unless the court finds that the valid sections, standing alone, are
incomplete and are incapable of being executed in accordance with the legislative intent.
ADOPTED by the Tax Increment Financing Commission of the City of Cape Girardeau,
Missouri, this 19"` day of August 19, 2020.
Chairman
-3-
1*14111af11I_1
REDEVELOPMENT PLAN
[On file in the office of the City Clerk]