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HomeMy WebLinkAbout1999-03-18 TIF Commission MinutesMINUTES TAX INCREMENT FINANCING COMMISSION PUBLIC HEARING The Riverside Tax Increment Financing Commission met to conduct a Public Hearing on proposed revisions to the L-385 Levee Redevelopment Plan on March 18, 1999, at 7:30 p.m. in the Riverside Community Center, 4498 NW High Drive, Riverside, MO. Chairman Ron Super called the meeting to order and roll call was answered by the following members: Bill Bright, Jim Davis, Diza Eskridge, Kent Jackson, Phil Krause, Ron Super, and Al Tunis. Absent were: David Brenner, Jimmy Karr, and Tim Weeks. Also present were: Steve Crystal, Attorney; Deborah Polk, Attorney; and Ann Daniels, Secretary to the TIF Commission. Minutes from the previous meeting of November 30, 1998, were approved as printed upon a motion by Phil Krause, seconded by Al Tunis. The vote was unanimous. Chairman Super stated the purpose of the public hearing was to present the amendments to the L-385 Levee Redevelopment Plan. He asked that everyone present sign the attendance record which is attached to these minutes. The Chairman further reminded those present that this meeting had nothing to do with the assessments proposed to individual properties in the levee district area but was only to review the TIF plan and proposed amendments to that original plan. Chairman Super introduced City Attorney Steve Crystal who gave a brief history of the project to this point and an overview of the Plan Amendments. Included in his presentation were the following items: 1. A review of the damages caused by the 1993 Flood which demonstrated the value of having the levee built. 2. Sources and Uses of Funds indicating the pro rata share of the $56 million levee is currently computed at a 51% share by the federal government and a 49a share by the local sponsor. 3. An updated Time Table of events showing tentative plans call for bids to be taken on the construction of the levee in October or November of 1999; contracts to be awarded in January or February of 2000; and construction anticipated to be completed by 2003. With regard to the issuance of the approved bonds, Crystal noted they would only be issued as needed for each stage of construction. -1- 4. A Summary of the Amendments to the L-385 Levee Redevelopment Plan. A brief summary of the items covered is included here. SUNII~fARY OF AMENDMENTS TO THE L-385 LEVEE REDEVELOPMENT PLAN I. Redevelopment Project I Approval for Super TIF funds has been received from the State of Missouri which will allocate 50 0 of the sales tax and/or state income tax (estimated at approximately $300,000 annually) received from the project area to return to the project to pay off TIF bonds. An additional project, construction of a wireless communications tower by Southwestern Bell Telephone Company, is being added to Redevelopment Project I. I2. Redevelopment Project II A. Proposes that infrastructure costs to develop the I-635 Interchange and construction of Van De Populier Road, anticipated to cost $4.4 million, use TIF funds to subsidize no more than 50~ of the costs after all state and federal funding has been explored and reimbursement is not to exceed $2.143 million. B. The purpose of providing TIF funds to pay for up to 50% of the infrastructure costs for these two areas is to give incentive for Trillium, the land owner/developer, to develop the property quickly so that bonds could be paid off sooner to reduce the payments from the land owners in the area. C. Credit enhancement is to be provided by Trillium and may be secured by state tax credits, which may possibly be available for purchase by other businesses in the area should Trillium not continue with the project. D. Trillium is to encourage retail development in the project area. E. The Developer fronts the reimbursed if development place in a timely manner. construction costs and is of the property takes -2- III. State TIF Assistance As previously mentioned, a portion of the new state sales tax/income taxes generated in the project area would be returned to help pay off the TIF bonds in the Redevelopment Project Areas. IV. Order of Priority for Reimbursement of TIF Revenues The order of priority for reimbursement of TIF Revenues would be as follows: 1. TIF Bond Payments 2. City of Riverside's Administrative Costs 3. Reduce the annual assessments to the land owners 4. Repay the Missouri Development Finance Board for tax credits 5. Repay the taxing jurisdictions, if any funds are available in excess of the previous requirements, as follows: a. City of Riverside - 40~ b. Developer - 40~ c. Other taxing jurisdictions - 20a V. Review of the Anticipated Land Owner Assessment Formula assumes that the "benefits" outweigh the "assessments" and the formula should be approved by the Commissioners when the Plan of Reclamation is filed. Following the thorough review of the project, Mr. Crystal stated that neither the TIF Commission, City of Riverside, nor Riverside- Quindaro Bend Levee District Board had received a firm response to these proposed Plan Amendments from the Trillium Corporation. Further announcement was made that a public meeting for the landowners would be hosted by the Corps of Engineers and members of the Riverside-Quindaro Bend Levee District on March 29, 1999, at 7:30 p.m. at the Riverside Community Center, at which time land owners could ask questions concerning their individual levee district assessments. The Public Hearing recessed at 8:30 p.m. The Public Hearing reconvened at 8:55 p.m. with all members in attendance at the beginning of the meeting still in place. Members of the TIF Commission who had questions were invited to state them. Al Tunis asked how the project would proceed if Trillium didn't agree with the terms presented in the Amended Plan just reviewed. -3- Steve Crystal responded that it would be necessary to amend the Plan further if Trillium did not accept these amendments but the project would continue to go forward and an Alternative has been planned. Comments were invited from those attending the hearing and as capsulized as follows: Don Robertson, owner of Kitterman Plastics, asked if the success of the project depended upon Trillium's participation. Steve Crystal responded that this was not true and the project would continue with or without them. However, he stated he believed Trillium was only looking out for the best interests of their company. He further stated the TIF Commission has planned for a contingency should they decide not to participate but that would not be discussed until a response has been received from Trillium. Robertson further inquired as to whether the levee was being built to the 100 or 500 year flood level and when the last revision was made to the flood designation and whether it would not be outdated by now. The response was given that the levee was being constructed to the 100 year flood level and the last revision was made in 1977. With regard to whether it would be outdated, Steve Crystal responded that the date of the map did not matter that the important issue was the amount of protection to be provided to each property at the time the levee is constructed. Ed Young, owner of Red X, asked if Trillium could sell part of their property, make a profit on it, and then leave without developing the property or paying the assessments. Steve Crystal answered that they could, indeed, sell any or all of their property, as could any other landowner in the area, but that the assessments for the project remain with the property and whoever purchased the property would be required to assume those assessments and the project would continue as originally planned but with a new developer. Mr. Young asked if it would be recorded anywhere that this was the case and Crystal replied that the Plan of Reclamation would include all this information and it would be filed with the County and become a permanent record. Mr. Crystal stated he believed Trillium would make a higher rate of return on their investment if they continue with the TIF project and develop the land rather than just sell the property, as it stands, with no protection. Jim Trimble, attorney, asked if it would be possible for the property, as it stands, with no protection. Jim Trimble, attorney, asked if it would be possible for the land owners to "bundle up" their contributions of land with tax credits for the donation of the land to take a direct credit on their taxes for their contributions. Steve Crystal answered that this could be studied and reported back at a later date. Betty Burch, Alderman, asked if it would be possible for land owners to prepay their assessments or whether that would depend upon Trillium's participation. Crystal responded that it would not depend upon Trillium but would depend completely on whether the Missouri State Statutes would allow it. That issue will be investigated further. With no further questions being presented, Chairman Super entertained a motion from Phil Krause, seconded by Al Tunis, that the Public Hearing be continued until April 7, at 7:30 p.m. in the Community Center. The motion passed unanimously. A motion was made by Diza Eskridge, seconded by Kent Jackson, that the TIF Commission move into Closed Session, pursuant to RSMo 610.021(1) for discussion of legal issues with the Attorney. Motion carried. Chairman Super recessed the Public Hearing until April 7. Bob Varker, member of the Riverside-Quindaro Bend Levee District and a land owner in the project area, expressed appreciation to the City, TIF Commission, and Mr. Crystal for presenting a thorough review of the project and continuing to work towards the completion of the levee. The Public Hearing recessed at 9:20 p.m. The TIF Commission entered into Closed Session at 9:20 p.m. and returned to Open Session by motion of Diza Eskridge, seconded by Phil Krause, and adjourned by general consent at 9:40 p.m.. // ~" /l i c~c,~L~r r./~~! ,r cam' L,C /, Ann Daniels, Secretary Riverside TIF Commission >', ~~ ~ - .~ ~ ~- i-' ;~ i ~ / ~ ~ rte ~{ ~{' ~ .. Gtr ~ c~ ~~~~~ 5~"~.~ ~~ ~~ ~ ~, ,~ 2 ~~ ,u,L~ ~ 1 bF ~.. lip ~ ?~ ~~L'N~v'c~. ~''~~k`7=LIv 6~-'r1hk~~ ~,.t,3,.r;- rr'~}~. f.r~!~+L~•'7i x~ E'~~6~ ~~~~ ~~~ ~ -_ ff ~ ~, v/ ~ov` b Qo~o.n_v-~So ~y C~~.~.n.v~v~nnN ~l~s~~ ~5 ~s~ ~ :.~_ ~ ~-~,~~- ,i r ~~J ~ i vti. - ~ ... v ~Cf fti/ ti ~Gt~~y,y~/ Y c.~ ~c~ r~ ~/ J ~r~~ e Lrai~s~ ~~G il/la ~~+' _ ;~