HomeMy WebLinkAboutTIF.Minutes.08-27-2002CITY OF CAPE GIRARDEAU TIF COMMISSION
August 27, 2002
Meeting Minutes
Members and Attendance:
(X = present)
City:
X A. Spradling X H. White H. Rediger X J. Mehner X D. Essner X A. Stoverink
County:
X G. Jones X J. Gambill
School District:
X B. Blank X R. Huff
Other Entities:
X B. Craig
Staff and Consultants:
X M. Miller X E. Cunningham X K. Bratton X M. Brown X M. Grimm X C. Buchheit
The meeting was called to order by Chairman Spradling at 7:00 p.m. The minutes from the May 14,
2002 meeting were approved by the Commission as written, upon motion by Hugh White and
second by John Mehner. Mr. Spradling asked the representatives from the Prestwick Group for any
additional comments they may have on the Redevelopment Proposal they submitted on July 26,
2002. Having no additional comments, Mr. Spradling asked the Commission members for any
comments or questions on the proposal.
Responding to a question about the proposal’s lot sales projections, Mr. Suelmann from the
Prestwick Group responded that the data on lot sales was developed by a consultant working with
the Prestwick Group. Mr. Suelmann indicated that the open space shown on the plans would be
open to the public but would be privately maintained. There was discussion regarding the proposed
improvement to Bloomfield Road. Chris Koehler, engineering consultant, indicated that their
proposal included the improvement of Bloomfield Road by adding a three to four foot curb section
to each side from Benton Hill Road to Missouri Route 74, with preservation of the tree corridor as
much as possible. Kent Bratton stated that the City staff’s estimate was for a 36-foot wide pavement
from Siemers Drive to Route 74.
There was discussion regarding the proposed payments to the School District and the City. Mr.
Suelmann indicated that they were willing to meet with the School Board to discuss the up-front
payments and timing of those payments. Mr. Richardson, the attorney for the Prestwick Group,
noted that the bulk of the TIF would be real property taxes and briefly described Tax Increment
Financing. He noted that their projections indicated that some funds would be available in the 6th or
7th year above the TIF payoff. The Prestwick Group representatives stressed that the bonds used for
the TIF would be special obligation bonds with no risk to the City or the other taxing entities. They
indicated that only the Prestwick Group would be liable for the repayment of the bonds, which
would probably be sold in phases as the project develops.
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In discussing which aspects of the development would be funded by the TIF, it was noted that the
community center was not included in the facilities to be funded by the TIF since a membership fee
would be required of users of the community center. It was further noted that the revenues from
the clubhouse and golf course were included in the revenue stream used to pay back the TIF, but
that monies from the TIF were not proposed to be used to develop the clubhouse or golf course.
Mr. Suelmann noted that the funds that were being requested from the TIF were listed on page 14
of the Redevelopment Proposal and include: $4 million for the School District; $580,000 for the
City of Cape Girardeau; $1.4 million for improvements to Bloomfield Road; and $24 million to pay
for a portion of the costs for the Prestwick development, as listed in Table 1. When asked which of
the costs on Table 1 would be paid for out of the TIF, Mr. Suelmann indicated that decision had not
been made and would be determined by the study being conducted by Chauncy Buchheit of the
Southeast Missouri RPC.
Rob Huff, a representative of the School District, indicated that the School Board thought the
amount of the TIF was higher than they expected, and also proposed for a longer time period than
expected. There was further discussion on the prices of lots in the proposed development and the
sales projections used in the Redevelopment Proposal. Mr. Suelmann indicated that the cost of the
land included in the $8.2 million for land acquisition does not include the land underlying the golf
course. He noted that while the land aquisition cost was included in the list of eligible costs, the
Prestwick Group was not requesting reimbursement for the cost of the land for the golf course
property, which has already been acquired.
There was discussion regarding the bonds to be sold for the TIF and how these bonds were
guaranteed. It was noted by the Prestwick Group representatives that the bonds would be privately
financed initially before there are substantial improvements due to the risk involved. When asked if
the development would be a gated community, Mr. Suelmann responded that the entire development
would be open to the public and not gated.
Mr. Huff noted that School Board members expressed concern about the precedent that this TIF
would set and that more developments would request TIFs to fund infrastructure, thereby
endangering the tax base that the School District relied upon. Mr. Suelmann noted that there was a
difference between the Prestwick development and other typical developments in Cape Girardeau
because of its size and facilities being proposed. It was noted that most TIFs have been requested
for commercial developments, rather than residential developments.
Mr. Miller noted that TIFs commonly sparked other developments through the provision of
infrastructure, which would be an economic benefit to the community. Mr. Mehner noted that the
Prestwick development would contribute to population growth in the City which has been a
continuing concern. Mr. Spradling indicated that the Commission needed to know that the School
Board was satisfied by the proposal through an agreement between the Prestwick Group and the
School Board. Mr. White said that he thought the “but for” determination was the most important
issue regarding the redevelopment proposal, to which Mr. Suelmann responded that Mr. Buchheit’s
independent analysis would answer that question. Mr. Huff noted that Mr. Buchheit’s analysis
would influence the School Board’s decision regarding the redevelopment proposal. Mr. Richardson