Shoppers at the Capital Mall will start seeing some changes by the end of September in what will be an ongoing process of multi-million dollar renovations.
Jefferson City officials approved activation of a tax increment financing district at the Capital Mall last week. 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 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.
And it's not the only tool being used to pay for the costs of an estimated $36 million renovation plan.
A community improvement district was enacted at the Capital Mall on July 1, 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.
Central Bank has agreed to finance $10.1 million, while the Farmer Holding Company itself has committed the remaining $11 million for the project.
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.
Rob Kingsbury, with the Farmer Holding Company, said they currently are finalizing plans with the architects, which should take about 30 days to complete. After the plans are finalized, he said, shoppers should begin to see "physical identifiable improvements" by the end of September.
And all the renovations will be completed in a way that will keep the mall open to shoppers during the entire process, Kingsbury said.
The 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."
The original TIF plan, submitted to the city last fall, stated the area currently has annual sales of $72 million, resulting in $5.5 million in annual sales tax revenues. The plan stated completion of the renovations would increase total annual sales to $75 million.
Kingsbury said the TIF and CID allow the renovation to happen much quicker than if the developer had to cover all the up front costs. The renovation itself, he said, will allow the mall to compete with other markets for national chains.
"It's been a bit of an uphill battle for the Capital Mall," Kingbury said. "So we're very excited because we feel like we are now in a position to compete on a level playing field with other markets and we intend, and we believe, that we will attract many new retailers to the mall."
Kingsbury said the company will stick as closely to the plan submitted to the city last year as possible.
The original plan laid out a four-year timeline for redevelopment that was set to begin February 2014. Because the TIF and CID weren't activated until this month, the timeline has been altered to begin this month with the rehabilitation of the Capital Mall building, common areas and infrastructure. Starting in 2015, the mall would continue to be redeveloped, focusing on vacant units within the mall with the goal of leasing the spaces, which would continue through August 2018.
"Our intent is to deliver the improvements as quick as possible because the sooner they're the done, the sooner the economic activity will be maximized," Kingsbury said.
The full TIF plan submitted by the developers can be found on the city's website at www.jeffcitymo.org.