Bonds for Joplin TIF expected to pay off earlier than expected
Redevelopment efforts following the 2011 tornado have been strong and will help close the Recovery TIF (Tax Increment Financing) created in 2013 to stimulate Joplin’s rebuilding. Read the full press release from the city below:
A TIF District was set as part of Joplin’s redevelopment plan, following the EF-5 tornado that devastated nearly one third of the city on May 22, 2011. The “Recovery TIF”, as City and community officials referred to it, was approved to help rebuild and recover in a planned manner. To achieve this goal, the Joplin Redevelopment Corporation (JRC) issued TIF bonds in 2013 for two separate purposes. The bond proceeds were used to purchase additional property for planned development, and provide the local match for the Economic Development Authority (EDA) grant that was used to build the new Joplin Public Library and provide infrastructure at 32nd Street and Central City Road.
The two types of projects resulted in two separate bond issues as follows:
Series “A”- Issued as taxable series for additional land purchase, which netted approximately $12.2 million in cash proceeds
Series “B”- Issued as tax exempt series for the local match for the Economic Development Administration Grant, which netted approximately $5.7 million in cash proceeds.
During a recent update on the bonds issued for the Recovery TIF, Finance Director Leslie Haase noted that the Series “A” bonds will be paid off with April 2019’s payment and anticipates the Series “B” bonds will be paid in full by October 2020, if the collections remain strong as they have been these past six years. Original closing date for the Recovery TIF was set for 2033.
Boundaries of the proposed Joplin Recovery Redevelopment Area were drawn to constitute the portion of the city most impacted by the tornado and the downtown area. It consists of approximately 6,142 parcels and contains approximately 3,129 acres of land, including 784 acres of right-of-way. It is the largest TIF district in the state of Missouri.
“Joplin was greatly impacted in 2011,” said Mayor Gary Shaw. “Following the disaster, we were looking to rebuild our community with our existing businesses as well as seeking opportunities for new developments in Joplin. The sheer size of the TIF area has helped, and the collections have been strong. This is wonderful news for our community,” said Mayor Gary Shaw. “After the redevelopment area has been dissolved and the TIF is closed, the increased tax collections will go directly to the various taxing jurisdictions.”
An estimated amount of $3.6 million will be dispersed among the jurisdictions including $1.6 million for Joplin Schools; $430,000 for Jasper County; $100,000 for Joplin Special Roads District, and $44,000 for Jasper County 911. The City of Joplin will receive an estimated $1.4 million with $600,000 of that amount going to the General Fund; and $220,00 of it to Public Safety. The remainder will be allocated to other tax funds as designated, including Transportation, Parks and Stormwater; and Capital Improvements. The Health Department, Parks and Recreation Department and Solid Waste Management will also receive property tax collections of approximately $27,000 each.
“The sales tax collections from this area far exceeded the projections when the TIF was formed,” said Haase. “This is a reflection of the successful recovery of our community following a disaster of this magnitude.”
TIF is a tool provided by state law that allows for funding part of a redevelopment project on land considered to be blighted or near-blighted by using a portion of the additional taxes created by a project to reimburse developers for that part of their project costs that are considered extraordinary because of location and local architectural and landscape requirements. The developer for the Recovery TIF is the Joplin Redevelopment Corporation (JRC), which is a wholly-owned subsidiary of the City.
