By TIM LANDIS (tim.landis@sj-r.com)
“We’ll be entering into negotiations with Hy-Vee for a developer’s agreement. We expect that to begin soon,” said city economic development director Mike Farmer. Hy-Vee is expected to ask for assistance from a MacArthur Boulevard tax increment financing district that was unanimously approved by the council Tuesday. The district covers both sides of MacArthur from South Grand Avenue to Summit Avenue. “There’ll obviously be some demolition on the site and some clearing and environmental costs. We’d probably cover a portion of that,” said Farmer.
Under TIF rules, increased revenue from property taxes can be used to reimburse developers for the cost of improvements. Hy-Vee plans to demolish the exterior of the former Kmart and use the steelwork as the skeleton of the grocery store. The former Spillway Lanes bowling alley would be demolished to make room for a convenience store and gasoline station. A Title-Max payday loans building also would be demolished to allow for additional parking.
No money in TIF
The MacArthur TIF will not begin to generate money for redevelopment until 2011 property taxes are collected this year, said Ward 7 Ald. Joe McMenamin, who represents the area. “I expect something will be worked out,” said McMenamin. “It’s more difficult because there are no funds.” Both McMenamin and Farmer said they believe an agreement can be approved by the city council in time to meet Hy-Vee’s spring construction schedule. The company has indicated construction will take about a year.
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The MacArthur Boulevard tax increment financing district
* Status: Approved by a unanimous vote of the Springfield City Council on Tuesday.
* Area covered: South Grand Avenue to Summit Avenue, each side of the boulevard.
* How it works: As new development occurs, revenue from increased property taxes is used to pay for other improvements within the district such as demolition costs, sidewalk and street improvements, utilities and site cleanup.
* What next? City must negotiate a development agreement with Hy-Vee, including project costs covered by the TIF. It would then go to the city council for final approval.
Joe McMenamin for Ward 7 