Harrisonville Supports Marketplace Bonds
Posted By J.T. on September 20, 2009
Last month, the Harrisonville Board of Aldermen voted down an ordinance that would have backed bonds for the Harrisonville Marketplace Redevelopment Plan. This month they changed course and approved the plan.
Last week, in a 5-3 vote, the Board approved the backing of over $9,000,000 in bonds to reimburse expenses on the project. In January, developer Jerry Simmons asked the BoA for help covering $6,000,000 in overrun costs. He had explained then that the development was estimated to cost $10M but the project had already incurred costs of $16M.
“It’s not the fault of the city and it’s not my fault,” Simmons told the board last Monday. “The economy has changed.”
City attorney Steve Mauer said the city was being asked to underwrite the bonds to secure a better rate for a higher amount, but that does not mean the city owes the developer money. Harrisonville in effect becomes co-signers and will become responsible for repayment of the loan if the developer is unable to.
From the Cass County Democrat-Missourian:
“I think everyone is in favor of the development going forward and based on what we were told if this did not happen there was a probability of foreclosure on the development,” (Harrisonville Mayor Kevin) Wood said. “The question has been how much should the city be involved and things are completely different (financially) from when we started this project.”
Wood also said this was a move that cities all over the area had already made and that it was time for Harrisonville to carefully use what tools it has in spurring development.
“Many cities have had to do this and it was time for Harrisonville,” said Wood. “I think the difference here is that we have been very careful about this.”
The board also approved the creation of a community improvement district, or CID, for the development as an additional revenue generator to cover development costs. In a presentation to board members it was said that revenues would have to fall below 70 percent of projected numbers for the city to have to tap into appropriations.
CIDs are areas where businesses basically have the ability to levy and collect special assessments and sales taxes without approval from city residents. The theory being that citizens can vote with their dollars on whether or not to support the district.
According to the Missouri Bar the fundamental attribute of CIDs is the empowerment of citizens to “take back control of their communities instead of waiting for government to solve their needs in competition with other communities.” Ultimately “[t]hrough the community improvement districts, residents can form their own quasi-governmental body among their neighbors, set measurable goals and see their tax dollars at work in their own backyards.”
So just how high is the sales tax now at the new Price Chopper?