The City of Joplin has approved the framework for moving forward with an amendment to a Tax Increment Financing funding agreement with Menard’s in the near future. Unanimous approval was given by members of council at Monday night’s meeting. A TIF is a financing tool to help with extraordinary costs in a blighted area, such as the Hope Valley CID. The TIF would require Menard’s to deposit $25,000 to cover costs the city would incur during the process. It also makes provisions to allow the city to be able to bill the developer if the costs incurred are more than that deposit.
Finance Director, Leslie Haase, says this approval of the agreement does not approve the amendment to the TIF plan. “To actually move an amendment forward, there’s a lot of work that needs to be done. It would have to go back to the TIF commission and come back to city council.”
“If the development happens, the incremental increase caused by the development actually helps to pay for that infrastructure instead of the city putting in the infrastructure, and helps to offset extraordinary costs,” adds Haase.
The TIF would use part of sales and property taxes in the Hope Valley CID to help pay for those costs, including management of a stream that runs through the area and makes it more difficult for development.
While Menard Incorporated wants to build within the Hope Valley CID, officials say they did not want to be a part of the community improvement district itself.
Haase tells Newstalk KZRG why similar stores did not receive TIF’s in years past. “The TIF is looking into developing that whole area and that’s what Menard’s is actually looking into, developing that whole area, not just the area for their store.”
Last month, council approved the site plan for Menard’s who has proposed to build a 171,000 square foot store in the Silver Creek Galleria just south of Interstate 44.