During its regular meeting Tuesday, the Pettis County Ambulance District heard from City of Sedalia officials about a possible Tax Increment Financing District that is being considered for approval.
Attorney Joe Lauber, who acts as special council for Sedalia economic development, gave the board a broad overview of the potential TIF, which would be located on two blighted parcels of land on West Broadway Boulevard. The first would bring two commercial retail or restaurant businesses to an empty plot of land located in front of the Econo Lodge, the other would bring two retail or restaurant businesses to empty land located near the Galaxy Theater.
“The biggest thing to understand about a TIF district is that it does not increase taxes,” Lauber told the board. “It gives developers incentives to build on land that may not be ideal. For this TIF, these two parcels would require huge infrastructure and access issues to be fixed.”
Lauber explained the TIF – if approved by a special TIF commission and the Sedalia City Council – would take land not being used, and therefore not bringing in sales tax to PCAD, and put a business on it that would generate revenue.
“The developer, Star Development, is wanting to invest $11.1 million into Sedalia, while recouping about $2.6 million in incentives over the life of the TIF, which is 23 years,” he said. “That amounts to about $16.6 million in new sales tax revenue for Sedalia. For PCAD that would amount to an additional $650,000 over the life of the TIF.”
PCAD would be required to pay into the TIF, about $325,000 over 23 years, to help pay off its $2.6 million in incentives. Other taxing entities would also pay into the TIF.
During the meeting the board decided to verbally commit to approving being part of the TIF and will vote officially during its next meeting, August 18.