Districts corsets wholesale discuss Broadway Hotel’s application before public hearing

A city commission continues corsets wholesale its review of the Broadway Hotel’s request to use $2 million in tax increment financing, or TIF, to help fund a second hotel tower.

TIF would freeze property tax on the property for long gown dress 23 years, putting the additional funds toward development costs. The TIF Commission is made up of representatives for local taxing district: the city, county, Columbia Public Library, Columbia Public Schools, the Downtown Community Improvement District and Boone County Family Resources.

The commission held a public hearing earlier this month on the project and continued the hearing to 6 p.m. Monday at city hall. The commission again will hear public comments and could vote on its recommendation to the council.

The TIF Act requires jdfhggfhk projects receiving a tax break through the financing method meet criteria of either a blighted area, a conservation area or an economic development area.

Broadway Hotel owner David Parmley says the property, located at 1104 E. Walnut St., fits the definition of a conservation area because of the age of the structure currently there, obsolescence on the property, excessive vacancies and deleterious land use or layout. A conservation area, according to the TIF Act, is an area that is not yet considered blighted but is “detrimental to public health, safety, morals, or welfare and may become a blighted area.”

The property has to meet at least three of the following factors: dilapidation, obsolescence, deterioration, illegal use of individual structures, presence of structures below minimum code standards, abandonment, excessive vacancies, overcrowding of structures and community facilities, lack of ventilation, light or sanitary facilities, inadequate utilities, excessive land coverage, deleterious land use or layout, depreciation of physical maintenance and a lack of community planning.

Parmley said his $20 million project is the highest and best use for the land. The property and project must also pass the “but for” test, which says the redevelopment area would not likely be developed without the assistance of TIF.

In preparation for a possible vote, commission members have spoken with the taxing districts they represent to gauge how each district feels about the TIF request and proposed project. The “but for” test was a focus during some of those conversations.

The Columbia Board of Education at a work session this month told its two representatives on the commission to vote no on the TIF request. Christine King, one of two board of education members representing the board on the TIF Commission, said she doesn’t feel the potential cons of approving the Broadway Hotel’s TIF request has been properly vetted.

TIF does not touch existing tax dollars. However, King said the negative side is if TIF is approved when another developer may be able to develop the property in the future without the tax break. If the land is developed without TIF, the taxing districts would receive a boost in property tax dollars sooner.

During the Boone County Commission’s discussion this month, two commissioners questioned why the private development needed a public subsidy. At a meeting, Southern District Commissioner Fred Parry supported the project while Northern District Commissioner Janet Thompson and Presiding Commissioner Dan Atwill had reservations about the application.

Boone County Assessor Tom Schauwecker told the commissioners that preliminary numbers show a 50 percent increase between 2008 and 2016 in the assessed valuation of downtown property. He described downtown as a “hot market.” Because of that description, commissioners wondered if the Broadway Hotel’s application meets TIF criteria.

The Downtown CID wrote a letter expressing support for the project as long as the application meets legal criteria for TIF.

The TIF Commission will make a recommendation on the application to the city council. The council ultimately decides if tax increment financing is approved.


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