Capital Mall TIF, CID moves step closer to activation
Monday, May 5, 2014
Renovations to the Capital Mall are one step closer after the Jefferson City Council approved agreements for both a tax increment financing district and community improvement district.
At Monday’s council meeting, council members unanimously approved the two agreements that had been requested by the mall owner, Farmer Holding Co., to allow for a number of improvements to the nearly 36-year-old shopping center.
City Attorney Drew Hilpert said the agreement simply lays out the protections and obligations of each party, noting staff believes it’s a very good agreement that protects city interests.
“There is no risk on the city,” Hilpert said. “In this case, all the risk is on the developer.”
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.
The TIF will last 23 years and raise $10.6 million to help fund the renovation plan. 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.
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.”
Hilpert said the two agreements will go to the TIF Commission for review before coming back to the City Council for final approval, which will activate the start of the two taxing districts.
Use the comment form below to begin a discussion about this content.
Please review our Policies and Procedures before registering or commenting