Joomla Login LightBox powered by WowJoomla.com

TIF public hearing Nov. 9; plan available for public review

The Kearney TIF Commission will hear residents’ input Monday, Nov. 9, on a proposed project.

The public hearing will begin at 6:30 p.m. Monday, Nov. 9, at City Hall, 100 E. Washington St.

Here’s what the TIF plan says.

Who

Tim Harris, president of Star Development in Liberty, proposed the Shoppes at Kearney tax-increment-financing plan. He has done other TIF projects in the area such as the Liberty Triangle and Blue Jay Plaza on Missouri Highway 152 in Liberty.

What

If approved, the TIF project would include a grocery store, gas station, pharmacy, hotel and about eight retail stores and restaurants, according to the site plan.

When

Harris said construction would likely start in mid-2010. The first store would likely not open until early to mid-2011. The TIF reimbursements to the developer are set to end in 19 years.

Where

The site is on the south side of Missouri Highway 92 from Interstate 35 east to the houses at Regency Drive. There are 84.5 acres of vacant land there, about 37 of which are zoned commercial in the proposed site for the TIF project.

The total project cost is $39 million; of that $14 million are reimbursable expenses from the TIF fund.

Why

“It’s a challenging piece of property,” said John R. Davis Jr., vice president of Star Development, noting terrain and traffic obstacles. “Without the TIF, this property would not develop.”

The plan states the development would “positively impact the city’s economy.”

Mayor Bill Dane cited studies that show $43 million leave the city every year.

“There is a need to give the citizens a reason to stay in Kearney to spend their money,” Dane said.

Dane also estimated this could create up to 100 jobs.

How

The TIF fund is collected from difference in property taxes paid before the redevelopment to post-development and some sales tax.

The businesses in the TIF do not receive any tax breaks. TIF funds are used to pay for public improvements like roadways and sewers in addition to “soft costs” like engineering and attorney fees. Redevelopment would include land acquisition, engineering, site preparation, construction of public infrastructure improvements and the design and construction of private improvements.

The site currently generates about $25,000 in real estate taxes each year. The TIF plan projects the site could generate more than $546,000 in real estate taxes upon completion.

The TIF is a “pay-as-you-go” plan. While typically TIF projects involve the city authorizing obligation bonds, in this case the city of Kearney would reimburse the developer as projects are completed and funds become available in the TIF fund. The plan includes a letter signed by Bank Liberty Market President Robert Parks agreeing to finance the project for Star Development. Star Development would then use money from the TIF fund to pay back the loan for costs authorized under the TIF Act.

The plan, however, allows for the city to authorize obligation financing at any time in the project. Wesley Fields, TIF attorney for Kansas City, said that is a standard clause.

Davis said this would be used only if better interest rates were available from bonds.

“The only time the city would consider doing bonds is after five to seven years of proven cash flow,” Dane said.

Extras

In addition to the property tax increment and sales taxes, purchases in businesses in the TIF project would cost 1 percent more than most other places in town. The TIF plan calls for a community improvement district. Half of the CID funds will go to private property improvements like landscaping or parking lot maintenance. The other half will go toward the building and/or operations of a community center. Specifically, Dane wants to use that money for an aquatics center. The city and the school district have been working on an agreement for a joint use facility on school property, across from Kearney Junior High and adjacent to the football stadium.

The CID will not terminate with the TIF; it has its own set of documents to determine termination.

FIND OUT MORE ONLINE

- Due to early print deadlines the week of Veterans Day, coverage of the Monday, Nov. 9, public hearing will not be in the newspaper until the Nov. 19 edition. A recap of the meeting will be available Nov. 10 on The Kearney Courier Web site.

THE PLAN DETAILS

- Proposed project: Shoppes at Kearney

- Total cost: $39 million

- Space: 37 acres

- Time: 19 years to TIF payoff

- Total payments in lieu of taxes: $5.13 million

- Total economic activity taxes over 23 years: $10.7 million

- Current assessed valuation of 84.5 acres: $161,574

- Projected assessed valuation of the 37 acres in the sixth year (first full year following completion): $8.61 million

- Currently real estate tax: $25,000

- Projected real estate tax upon completion: more than $546,000

- Projected sales tax per year: $1.3 million

Source: Shoppes at Kearney TIF Plan for Star Development prepared by Polsinelli Shugart PC of Kansas City

Kearney Editor Kevin M. Smith can be reached at 628-6010 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Comments (1)

Subscribe to this comment's feed

Tiff Plan
written by Roxzan Eaton, November 07, 2009

The traffic on Regency Drive is already bad. Semi's, large equipment, and excessive speeding since they opened it for a through street. I am a resident on this street and it is very hard to back out without getting nailed. Or pulling in to my drive they speed behind me then whip pass me. With the new Tiff plan, this will increase activity in front of my home, that we have lived in for 12 years now. I am NOT excited at all for the entrance to be on Regency Drive. This proposed plan will be a problem just like the Pilot intersection is. I will fight it!!!

• 
• +5
• 
•