The property located at 824 Broadway, commonly known as the Esquire Theater,  has been vacant for some time and is showing signs of significant deterioration.  In 2018, the property was deemed blighted and a Tax Increment Financing District was established for the property by the City Council.

The approved Redevelopment Plan contemplated “rehabilitating and renovating the Esquire Theater building into an event space capable of hosting community events, gatherings, concerts, wedding receptions, conferences and meetings.”  However, the project never came to fruition.  

A new development group is now interested in redeveloping the property into professional office suites.  Because the proposed use of the property is inconsistent with the approved redevelopment plan, either the approved plan must be amended OR the existing TIF must be terminated and a new TIF must be created.  The development group has opted for the latter to reap the benefits of a full 23-year TIF. There is an ordinance on this agenda to terminate the existing TIF.  This Resolution will begin the process to create a new TIF.

TIF was designed by the State as a redevelopment tool for areas not likely to develop in a timely manner because of certain challenges including, but not limited to, age of structures, deterioration, excessive vacancies, inadequate utilities, lack of lights or sanitary facilities, etc. Tax Increment Financing allows the developer to capture the increment gained in property taxes between the current value and the improved value, and to direct this revenue back into approved developments to fund necessary things like acquisition, rehabilitation, infrastructure, parking, etc. Approved projects must meet the “but for” test. "But for" the use of this tool, the development cannot occur.

TIF protects the existing tax base. TIF can also be used in conjunction with development agreements.  The implementation of a TIF requires convening the TIF commission, a redevelopment plan, public hearing on the plan, and adoption of ordinances by the City Council.  However, the first step in the process is the distribution of a Request for Proposals to redevelop the property.

The City Council created the Tax Increment Financing Commission pursuant to Ordinance No. 2968. The City Council may convene the TIF Commission for the purpose of considering a new tax increment financing redevelopment plan for the property located at 824 Broadway in the City. The City Council may also authorize the dissemination of a request for proposals for the proposed Redevelopment Area.

The TIF Commission shall consist of eleven members, six of which are appointed by the Mayor with the consent of the majority of the City Council, and five appointed by the other taxing entities that levy a tax in the proposed redevelopment area.  The affected taxing entities will be contacted immediately and asked to make their respective appointments to the Commission.  The City's appointees are in place.

ATTACHMENTS: Name: Description: Resolution_convening_TIF_Commission_and_authorizing_RFP_(2022).docx Resolution Cape_Girardeau_TIF_RFP_-_Esquire_Theatre_(2022).docx Request for Proposals