Making Connections with Making Connections with Community Improvement Districts Community Improvement Districts in Missouri in Missouri Presented October 22, 2008 by Presented October 22, 2008 by Joe Lauber Joe Lauber 200 NE Missouri Road, Suite 200 200 NE Missouri Road, Suite 200 P ROVIDING ROVIDING L L EGAL EGAL S S OLUTIONS P OLUTIONS Lee’ ’s Summit, MO 64086 s Summit, MO 64086 Lee FOR L L OCAL OCAL G G OVERNMENTS OVERNMENTS (816) 251- (816) 251 -4646 4646 FOR
Overview Overview Tools in Missouri’ Tools in Missouri ’s economic development s economic development � � “toolbox toolbox” ” “ CID Concepts CID Concepts � � CID Improvements & Services CID Improvements & Services � � CID Funding Mechanisms CID Funding Mechanisms � � CID Act Requirements CID Act Requirements � � Setting the stage Setting the stage – – Timeline Timeline – – Petition preparation Petition preparation – – Public hearing Public hearing – – CID Board Meeting CID Board Meeting – – Sales Tax Election Sales Tax Election – – Ongoing CID Responsibilities Ongoing CID Responsibilities � � Case Study- - Historic Downtown Branson CID Historic Downtown Branson CID Case Study � �
Economic Development Economic Development Tools in Missouri Tools in Missouri Chapter 100 NID Chapter 100 NID � � � � Can issue industrial development bonds to finance A specified area in which the Can issue industrial development bonds to finance A specified area in which the – – – – the costs of warehouses, distribution or R&D city is authorized to impose the costs of warehouses, distribution or R&D city is authorized to impose facilities, and office industries— facilities, and office industries —property financed property financed special assessments to pay for special assessments to pay for by IDD bonds is tax exempt while the bonds are public improvements that confer by IDD bonds is tax exempt while the bonds are public improvements that confer outstanding outstanding a benefit on property that is a benefit on property that is located within the district located within the district Chapter 353 Chapter 353 � � TDD TDD � � Up to 25 years of tax abatement Up to 25 years of tax abatement – – Special taxing district authorized Special taxing district authorized To remedy blight that creates economic and social – – To remedy blight that creates economic and social – – to levy sales tax, special to levy sales tax, special liability, pursuant to a redevelopment plan liability, pursuant to a redevelopment plan assessments and/or property tax assessments and/or property tax TIF TIF � � to pay for transportation to pay for transportation Blight remediation costs reimbursed by incremental Blight remediation costs reimbursed by incremental projects projects – – increases in property and economic activity taxes increases in property and economic activity taxes CID CID � � achieved through development achieved through development Special taxing district authorized Special taxing district authorized – – MODESA MODESA � � to levy sales tax, special to levy sales tax, special Missouri Downtown Economic Stimulus Act Missouri Downtown Economic Stimulus Act assessments and/or property tax assessments and/or property tax – – to pay for a wide variety of to pay for a wide variety of Basically an enhanced version of TIF Basically an enhanced version of TIF – – improvements and services improvements and services Applicable only in a blighted central business Applicable only in a blighted central business – – within the boundaries of the within the boundaries of the district of a city. district of a city. district district
CID Concepts CID Concepts � “ “On On- -paper paper” ” CID, designed as a funding mechanism CID, designed as a funding mechanism � in connection with other economic development in connection with other economic development tools such as TIF tools such as TIF � Enhanced homeowners association Enhanced homeowners association � � Specific purpose entity designed to meet a specific Specific purpose entity designed to meet a specific � need identified by the district property owners need identified by the district property owners
CID- -Eligible Improvements and Services Eligible Improvements and Services CID Improvements Improvements Pedestrian or shopping malls and Pedestrian or shopping malls and – – plazas. plazas. Parks, lawns, trees and any other Parks, lawns, trees and any other – – landscape. landscape. Convention centers, arenas, Convention centers, arenas, – – aquariums, aviaries and meeting aquariums, aviaries and meeting facilities. facilities. Sidewalks, streets, alleys, bridges, Sidewalks, streets, alleys, bridges, – – ramps tunnels, overpasses and ramps tunnels, overpasses and underpasses, traffic signs and underpasses, traffic signs and signals, utilities, drainage, water, signals, utilities, drainage, water, storm and sewer systems and other storm and sewer systems and other site improvements. site improvements.
CID- -Eligible Improvements and Services Eligible Improvements and Services CID Improvements Improvements – Parking lots, garages or other Parking lots, garages or other – facilities. facilities. – Music, news and child Music, news and child- -care care – facilities. facilities. – Any other useful, necessary or Any other useful, necessary or – desired improvement. desired improvement. – In addition, within a In addition, within a “ “blighted blighted – area” ”, the district may pay costs , the district may pay costs area of demolishing, renovating and of demolishing, renovating and rehabilitating structures. rehabilitating structures.
CID- -Eligible Improvements and Services Eligible Improvements and Services CID Services Services With the municipality’ With the municipality ’s consent, s consent, – – prohibiting or restricting vehicular and prohibiting or restricting vehicular and pedestrian traffic and vendors on pedestrian traffic and vendors on streets. streets. Operating or contracting for the Operating or contracting for the – – provision of music, news, child- -care or care or provision of music, news, child parking facilities, and buses, mini- -buses buses parking facilities, and buses, mini or other modes of transportation. or other modes of transportation. Leasing space for sidewalk café é tables tables Leasing space for sidewalk caf – – and chairs. and chairs. Providing or contracting for the Providing or contracting for the – – provision of security personnel, provision of security personnel, equipment or facilities for the equipment or facilities for the protection of property and persons. protection of property and persons.
CID- -Eligible Improvements and Services Eligible Improvements and Services CID Services Services Providing or contracting for cleaning, Providing or contracting for cleaning, – – maintenance and other services to maintenance and other services to public and private property. public and private property. Promoting tourism, recreational or Promoting tourism, recreational or – – cultural activities or special events. cultural activities or special events. Promoting business activity, Promoting business activity, – – development and retention. development and retention. Providing refuse collection and Providing refuse collection and – – disposal services. disposal services. Contracting for or conducting Contracting for or conducting – – economic, planning, marketing or economic, planning, marketing or other studies. other studies.
CID Funding Mechanisms CID Funding Mechanisms Sales Tax Sales Tax � � 1/8% increments up to 1% on all retail sales made 1/8% increments up to 1% on all retail sales made – – within the boundaries of the district within the boundaries of the district Available only to political subdivision CIDs Available only to political subdivision CIDs – – Property Tax Property Tax � � Available only to political subdivision CIDs Available only to political subdivision CIDs – – Special Assessments Special Assessments � � Available to all CIDs Available to all CIDs – – May not assess exempt property, unless the owner May not assess exempt property, unless the owner – – voluntarily consents voluntarily consents User Fees User Fees � � May charge for use of the CID’ ’s real or personal s real or personal May charge for use of the CID – – property (other than public right of way) property (other than public right of way) Business license taxes Business license taxes � � Only in Springfield Only in Springfield – –
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