The Jefferson City TIF Commission will meet at least one more time before voting on the proposed Tax Increment Financing (TIF) assistance for redevelopment of the Truman Hotel & Conference Center property.
Nine of the commission's 11 members met Monday evening intending to hold a public hearing to discuss the issue and potentially vote on whether to recommend approval or disapproval of the TIF to the City Council.
However, due to a lack of proper legal notice prior to the scheduled hearing, the commission did not have the authority to hold the hearing, City Attorney Drew Hilpert told the commissioners Monday.
Legally, the city must publish notice of public hearings at least 30 days in advance as well as within 10 days of the hearing date. But the city failed to meet the second requirement, Hilpert said.
The commission rescheduled the meeting and public hearing for 5:30 p.m. May 31 in the City Council Chambers at City Hall.
"That is somewhat fortuitous, I think, because we've heard from some members of the public about some issues," Hilpert said. "So we're going to use this time to see what we can do, and we'll need the help of some of our partners at the school district to help address some of their concerns as well."
Members of the Jefferson City Public Schools (JCPS) Board of Education first voiced concerns about the proposed TIF during a special meeting April 5 on the grounds that the school district would gain only $1.69 million in new property tax revenue while standing to lose a projected $11.6 million - which would be funneled back to the developer - over the maximum 23-year life of the TIF.
Nearly half of the school district's revenue comes from property taxes, JCPS Chief Financial Officer Jason Hoffman said, so the TIF affects the district more than the other government entities involved.
The Puri Group of Enterprises, which purchased the Jefferson Street hotel and conference center in July 2013, has applied for about $8.89 million in TIF assistance, plus financing costs and interest, for redevelopment of the 8.51-acre property. The Puri Group estimates in its TIF application the project will generate more than $20 million in new tax revenue - including sales, lodging and MILL taxes - for the city and county, as well as more than $56 million in local wages, over the 23-year life of the TIF.
Under the TIF's current terms, the city would reimburse the developer on a pay-as-you-go basis with 100 percent of increased property tax revenue collected over what was collected the year before the TIF began - so the reimbursement comes in conjunction with the rise in property value as a result of redevelopment.
The project would replace the Truman Hotel with two new ones - a Holiday Inn & Suites and Courtyard by Marriott - and renovate the existing 24,000-square-foot meeting space. A Cheerleader Pub and Grill would be located inside the Holiday Inn & Suites.
The TIF as proposed would also reimburse the developer with 50 percent of new sales tax revenue produced on the property, but that amount would be negligible compared to the property tax benefit because sales tax charged on lodging costs legally cannot be attached to a TIF - meaning the amount of TIF-eligible sales tax would be primarily from the restaurant.
Once the TIF expired, all increased property and sales tax revenue would benefit the entities that collect those taxes, including the city, county and school district.
"We plan to meet with some of the parties that are concerned and with the developers," Hilpert said. He noted the developer already has come up with ideas for addressing concerns but did not comment further on Monday.
The TIF Commission did accomplish one order of business at Monday's short meeting - electing Bill Betts as chairman and Linthacum as vice-chairman.
Other commission members present Monday were Hoffman; Cole County Public Works Director Larry Benz; Cole County Presiding Commissioner Sam Bushman; Betty Hagenhoff, Missouri River Regional Library assistant director; Robert Gammon; Tom Reichard of the Missouri Division of Professional Registration; and Jonathan Schnitzler, member at large. Not present were Seth Bauman and Darryl Winegar, both representatives of the city.