Laura Ward wins Ward 2 Council seat

Capital Mall TIF activated

The Jefferson City Council has voted to name Laura Ward as the new 2nd Ward council representative.

At the council meeting Monday, Ward won a majority of council votes for the seat vacated in May by Shawn Schulte, who was moving to the city's 5th Ward. Ward was approved by a 6-3 vote, with 3rd Ward Councilman Bob Scrivner, 4th Ward Councilman Carlos Graham and 4th Ward Councilman Glen Costales voting for Carolyn McDowell.

McDowell, who previously served on the council for 10 years (six in the 1970s and four in the 1990s) and ran for mayor in 1999, and Ward, who works at the University of Missouri School of Medicine and serves on the Historic City of Jefferson, had been nominated by council members for the 2nd Ward seat. Allen Tatman, owner of Paddy Malone's, had also been nominated, but withdrew his name citing time constraints.

Ward was sworn in immediately after the vote and took her spot on among the council. She will serve until April, when a new council is sworn in after municipal elections.

In other business, the council unexpectedly suspended the rules for the activation of the tax increment financing district at the Capital Mall, which had been set for approval at the July 21 meeting. Scrivner said the issue had been talked about so much in the last year that he did not see any reason to hold up the issue further and staff did not object. The council approved the TIF activation 9-0, with Ward abstaining from the vote.

The TIF will last 23 years and raise $10.6 million to help fund renovations to the mall, which is owned by the Farmer Holding Company.

The TIF will be activated immediately and will not impose any additional taxes, but will allow for a portion of the sales taxes generated on the property to be used to repay the costs of redevelopment.

Earlier this year, a community improvement district was enacted at the Capital Mall, which added a 1 percent sales tax to items purchased on the property. The CID will last for 40 years and raise roughly $5 million.

The renovations at the Capital Mall include: repaving the parking lot along with installing new lighting and repairing existing lighting; repairing and replacing the roof; installing and improving the exterior facade with "cultured stone and masonry;" installing solar paneling; repairing and replacing the Hvac units; and upgrading interior lighting, furniture, signs, flooring and paint.

Farmer Holding Company bought the mall for $11 million in late 2012. The local company had commissioned a blight study for the TIF process that stated the mall has become a liability and is unsafe, with "conditions endangering life and property by fire and other causes."

Rob Kingsbury, with the Farmer Holding Company, said they've been waiting to finalize the plans and, now that the TIF has been activated, they will work to finish plans this week and quickly begin renovations.

The council also approved a resolution supporting the Old Town Revitalization Company's appeal to the Cole County Board of Equalization for exemption from local property taxes. Fifth Ward Councilman Ralph Bray, who sponsored the resolution, said he was asked to bring the issue forward by representatives of the company.

The resolution states the Cole County assessor has levied property taxes against the company even though it was granted tax exempt status by the Internal Revenue Service in May 2011, and notes money to pay those taxes would have to come from city funds or tax-exempt donation, because the company's budget comes from city provided money, donations and grant funds.

"(Cole County Assessor) Chris Estes is refusing to acknowledge it," Bray said of the company's tax exempt status.

Ron Medin, with the Old Town Revitalization Company, said occasionally, the company steps in to purchase properties or properties are donated to the company to be "turned around, revitalized or, in some instances, demolished."

Medin said the hearing on the appeal is in a week and a half.

Costales said his reservations came from a previous council decision to not support a resolution asking legislators to not smoke in offices in the Capitol because some council members did not want to tell another government entity what to do. Costales said he also does not like the idea of supporting a tax exempt status when the council soon will start budget discussions and have to decide what areas can and can not be funded with limited revenues.

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