Staff:
Agenda:
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Molly Mehner, ICMA-CM, AICP, Deputy City Manager
12/20/2021 |
AGENDA REPORT
Cape Girardeau City Council
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21-280
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SUBJECT
An Ordinance approving a Redevelopment Agreement in Connection with a Portion of RPA 2 Redevelopment Project Described in the Redevelopment Plan for the Downtown Tax Increment Financing District, Cape Girardeau, Missouri.
EXECUTIVE SUMMARY
In January 2016, the City Council approved the Redevelopment Plan for the Downtown Tax Increment Financing District and designated five redevelopment project areas therein.
The City is in receipt of a project proposal from Lindsey Radcliffe, with Arsenal Venture LLC. The project includes the redevelopment of 1 South Main Street for Morning Star Behavioral Associates, a 7,000 square foot applied behavior analysis clinic for individuals with intellectual and developmental disabilities. The project also includes three residential lofts above the clinic space. The proposal requests tax increment financing assistance to reimburse the development for a portion of the costs of completing the project.
BACKGROUND/DISCUSSION
The City is in receipt of a project proposal from Lindsey Radcliffe, with Arsenal Venture LLC. The project includes the redevelopment of 1 South Main Street for Morning Star Behavioral Associates, a 7,000 square foot applied behavior analysis clinic for individuals with intellectual and developmental disabilities. The project also includes three residential lofts above the clinic space
The proposal requests tax increment financing assistance to reimburse the developer a portion of the costs to complete the project. The development is seeking 90% of the incremental real property taxes over 23 years. The assistance is capped at $248,078. If the maximum assistance amount is realized before the 23 years, the agreement will be terminated.
FINANCIAL IMPACT
The redevelopment project will result in increased property tax that otherwise would not have been generated. In addition, this redevelopment project will prevent the area from deteriorating further. TIF is designed to enhance the overall economic viability of the downtown area.
SUSTAINABILITY: ECONOMIC, ENVIRONMENTAL AND SOCIAL IMPACTS
Providing TIF assistance to this project allows for the stabilization and renovation of a deteriorated building which has been underutilized for years. The redevelopment of the building will increase the assessed valuation, prevent conditions from further deteriorating, and will enhance the economic viability of downtown.
STAFF RECOMMENDATION
Staff recommends the City Council approve the ordinance approving a redevelopment agreement in connection with a Portion of the RPA-2 redevelopment project described in the Redevelopment Plan for the Downtown Tax Increment Financing District.
BOARD OR COMMISSION RECOMMENDATION
The proposed project is in alignment with the approved Redevelopment Plan and Projects identified for the Downtown Tax Increment Financing District.
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