Though proposed plans for the Truman Hotel were rejected by a city commission last week, the proposal could still move forward, as long as at least seven members of the Jefferson City Council are on board.
The Jefferson City TIF Commission voted 7-1 on Thursday to reject the proposed Tax Increment Financing (TIF) plan for the former Truman Hotel & Conference Center property, but the full city council can still approve the TIF with a two-thirds supermajority vote in favor.
A first reading of the ordinance is likely to happen at the council's July 18 meeting, and a final vote would happen no earlier than the Aug. 1 meeting. So where does the council stand on the issue?
Fourth Ward Councilman Glen Costales said he fully supports the TIF proposal as it would lead to an "economic boom" for the city.
"If we don't do this, it's going to negatively impact us for a long time," Costales said. "I believe they'll (developer Puri Group of Enterprises) just let the building sit there, and we'll have an eyesore."
When asked about the Jefferson City Public Schools Board of Education's opposition to the TIF, Costales said he's ready to dismiss those concerns, as the school district didn't have any issues with the TIF at the Capital Mall when it was approved in 2014.
"Why are they concerned now when they weren't concerned before?" Costales asked. "I look at it as being a huge economic boom. There would be a tremendous number of jobs generated during and after construction."
Third Ward Councilman Ken Hussey said he believes the Puris have presented a good plan and worked to address the school district's concerns in their modified proposal, leading him to lean toward voting in favor of a TIF.
Hussey said he's confident in the figures presented by the third-party firm, Springsted, which conducted the "but-for" test twice and found the project met the needed determination. The but-for test determines whether the project could reasonably be completed without public assistance.
"I feel pretty confident in the numbers," Hussey said. "Any time a developer wants to spend $50-plus million in Jefferson City, I think it's worth us listening."
Second Ward Councilwoman Laura Ward said the proposal feels good to her, especially with the inclusion of annexing two Puri-owned hotels in the Apache Flats area. She agreed with Hussey the modified proposal worked to address concerns from other entities and believes the TIF, as it stands, would be in the best interest of the city.
"The annexation of those two additional hotels would be a great benefit to the city," Ward said. "At this point, I'm in favor of it."
However, not everyone is so sure the TIF is the best thing for the city.
First Ward Councilman Jim Branch said something has to be figured out for the property, but he'd need some convincing a TIF is really needed there, especially after the commission chose not to recommend it.
"I'd be hard pressed to go against (the TIF Commission)," Branch said. "I could probably be persuaded, but it would not be an easy thing."
Branch said he thinks the best thing to do would be for the Puri Group to go back to the drawing board and refigure their proposal or even scale it back to something more palatable to the commission and the school district. Unless that happens, Branch said he doesn't think there's really much for the council to consider.
"That's why we have those commissions there," Branch said, "to give us an idea of what the public is thinking. They've spoken."
Branch said the hardest part of the proposal for him to get past is the but-for test. While the Springsted report found the project did pass the test, Branch said he was not convinced. The hotel has highway visibility, he said, and will be located less than two miles from the Missouri Special Olympic's planned Training for Life campus.
"I'm honestly not sure that it really needs our money," Branch said. "There's just too much opportunity there to make money."
However, most council members said they aren't leaning one way or another and instead are waiting to learn more and hear from the public.
First Ward Councilman Rick Prather said he neither supports or opposes the project right now, but he needs to learn more about the specifics and work to keep personal feelings out of it.
"We just need to learn more about the situation itself," Prather said.
Prather cited a comment from the TIF Commission chair, Bill Betts, who said he voted against the TIF because of his belief the project could have proceeded profitably without the aid of taxpayer money. Prather said he wants to find out what that's being based on.
"I don't know enough about building hotels to tell you that they could or could not do it," Prather said, noting the testimony from other hoteliers may be more tied to an increase in competition. "I think both sides have valid points."
Second Ward Councilman J. Rick Mihalevich said he has several questions after last week's TIF Commission meeting that need further answers before he makes up his mind.
"I want to be sure we have a lot of confidence in the numbers that are being used for the but-for test," Mihalevich said. "If I can get some answers and they seem to fit, I'll give it full consideration."
Fourth Ward Councilman Carlos Graham also said he wants to learn more on the project before making up his mind, but he noted he has concerns about those traveling through Jefferson City seeing a large, boarded up hotel off the highway, especially less than a mile from the now-empty former St. Mary's Hospital location.
"It's starting to look ugly, and is that the right message we want to send for our city and for people who may potentially want to start a business here?" Graham said.
Graham said he usually doesn't vote against the recommendation of a city board or commission, but in this instance, he's going to have to look at all the information himself to ensure the right decision is made for Jefferson City.
Most importantly, Graham said, is what Fourth Ward residents have to say on the issue.
"I am truly going to listen to my constituents in my ward," Graham said.
Third Ward Councilwoman Erin Wiseman said she's undecided on the issue and wants to review all the information to make sure the plan is feasible and meets the but-for determination.
"I expect a lot of public interest and am looking forward to their input," Wiseman said.
Fifth Ward Councilman Mark Schreiber said he hasn't made up his mind yet and will make a determination once the information is presented to the full council.
"There's no doubt we need more hotel rooms, but I haven't made a decision yet," Schreiber said.
Fifth Ward Councilman Larry Henry did not return calls for comment left Friday and Saturday.
Previous coverage:
Jefferson City TIF Commission rejects Truman Hotel proposal, June 23, 2016
Board opposes TIF project for 'philosophical' reasons, June 23, 2016
New Truman Hotel funding plan proposed, June 19, 2016
Truman Hotel TIF decision delayed again, June 1, 2016
JCPS expects new TIF proposal, May 24, 2016
Developer meets with JCPS board to discuss TIF, May 10, 2016
Truman Hotel TIF meeting rescheduled, April 12, 2016
Schools historically have little power in TIF decisions, April 10, 2016
JCPS balks on proposed Truman Hotel TIF, April 6, 2016
Truman hotel seeking Tax Increment Financing for proposed developments, March 20, 2016
Truman Hotel closes, Dec. 4, 2015