A half-dozen people told Jefferson City's Council Tuesday night they should support or reject the proposal to declare the now-closed Truman Hotel property as a "blighted" redevelopment area and designate current owner PGE Hospitality Inc. as the project's developer with a tax increment financing (TIF) contract.
Three other people urged the 10 council members to approve a proposed ordinance declaring the 400-, 500- and 600-blocks of East Capitol Avenue as blighted, then designating those blocks as a "Revitalization/Redevelopment Area" as defined by state law.
But the council delayed final votes on both redevelopment proposals until at least their Sept. 19 meeting, since both were introduced as ordinances during Tuesday's meeting.
The council approved a $60,811,561.40 total budget for the city's new business year that begins Nov. 1, by an 8-2 vote.
Council members made one change before taking the final vote, adding more than $27,550 to reinstate an internship program, by taking money from some street maintenance materials.
Second Ward Councilman Rick Mihalevich said the program gives city officials attending career fairs "especially at Lincoln University and State Technical College (an) opportunity to entice some of the talent that we have in the area to explore city offices - and then maybe be employed by the city."
Mihalevich's proposal passed on a 6-4 vote, after 4th Ward Councilman Glen Costales argued against it.
"If you look around the town and drive on the streets, our streets are in horrible shape," he said. "We need to take advantage and overlay as many streets as we can, while the price of asphalt is down due to the low price of oil right now."
Among its other actions, the council approved contracts to repair a collapsed sewer line in the Forest Hill Avenue-Forest Drive area near Memorial Park and to spend nearly $293,000 to upgrade the 911 emergency system's recording and radio dispatching equipment.
The council also held a 35-minute closed session in the middle of Tuesday's meeting to discuss possible changes to the Truman TIF contracts but did not reveal the contents of the Puri group's modified proposal.
A TIF allows the city to take some of the taxes generated by a property and - instead of distributing those taxes in the normal way, including money to the school district - using those funds to help with the site development.
In the Truman Hotel case, the TIF would be almost $9 million. The discussions have included providing a TIF if the Puri group's two hotels in the Apache Flats are annexed into the city.
Interim City Counselor Mark Comley told the News Tribune the new proposal moves the talks more toward the city's view that the TIF and the annexations should be part of one contract. In the past, the Puris have favored a two-contract approach.
"There's enough there, I think, for the council to make a decision on the 19th," Comley said.
Mayor Carrie Tergin added: "It was worth looking at," but it was more of a "tweaking" of the plan and contract than a major change.
Former council member Edith Vogel urged the council to support the Truman Hotel TIF on a site that now "sits empty and boarded up."
Glover Brown agreed "there's a deep divide in the community about how the TIF will impact the city in the short- and long-term."
But, he told the council, "Jefferson City has a deficit of some 200 lodging rooms" that can be filled if the Puris get support to redevelop their property.
However, Ted Stewart, a former hotel owner, told the council the Puris had created the alleged "blighted" conditions at the Truman property by closing down close to 300 rooms.
Referring to voters' recent approval to extend the half-cent capital improvements sales tax, Stewart warned: "If you come to the taxpayers for another increase after you've given away $9 million - I think, foolishly - you will not like the results."
Previous coverage of the Truman Hotel TIF:
Truman Hotel TIF delayed further, Aug. 14, 2016
Truman Hotel TIF: What happens next?, June 26, 2016
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