The Jefferson City Council met Tuesday night in regular session.
The meeting started with a public hearing to expand the Urban Renewal Area. City Administrator Scott Peterson explained that there were three main areas being considered for the expansion with ten identified projects that were proposed that could then become eligible for tax increment financing to be used. Those areas included the former middle school and the rest of the block south, except for the property that is owned by The Children’s Center; a large portion along East Lincoln Way to the city cemetery and to the north, and the Greenewood Center and golf course.
The ten projects that were identified included converting the former middle school into apartments, assisting commercial properties with repairs and improvements to buildings and acquiring two derelict homes on East Lincoln Way, along with a storm drainage project in the East Lincoln Way area, acquiring and repurposing the Greenewood Center into a clubhouse while also maintaining a space for Congregate Meals, acquiring properties on Vine Street for a parking lot, developing city parks in the 200 and 300 blocks of Elm Street, administrative costs and economic development allocations to Jefferson Matters and Greene County Development Corporation.
Two people spoke during the hearing and asked questions that included federal legislation changes to losing tax increment financing and/or restrictions with it, concerns about enough space for Congregate Meals, and what would happen if a business failed to meet the criteria outlined in a forgivable loan agreement, among others. The answers that were mentioned wer that the city would continue to comply with whatever the changes in legislation with TIF might be, reassuring that there would be enough space for Congregate Meals and that if a business could not continue to operate within the ten year forgivable loan, they would owe what was left of that loan back to the city at the end of the ten year agreement.
Following the hearing, the Council unanimously approved to expand the Urban Renewal Area.
The second hearing was about creating a Blight District within the Urban Renewal Area. Peterson outlined that the area being considered is the former middle school and the block south, as well as the properties on Vine Street, including the Jefferson Elks Lodge. The proposed projects that are not authorized to be done include the middle school into apartment conversion project, developing a city park area, funding to Jefferson Matters and GCGC, administrative costs and a $300,000 forgivable loan for the apartment project.
Peterson said limited TIF revenue would be collected on the apartment project, but full taxes would not happen until year 11, due to the ten year tax abatement for the multi-residential housing project with five units at the low to moderate income level rental housing. Several questions were asked about who determines something to be blight, how would there be a frozen valuation on a property, among others. Some of the answers that were given included what the Council felt was consider blight, according to state code, and the county assessor determines all property valuations, whether they are non-profit or for profit. Following that hearing, the Council unanimously approved the Urban Renewal Area creation of a Blight District.
The Council next approved the first reading of an ordinance to establish the division of taxes for the expanded Urban Renewal Area, a resolution for a $300,000 forgivable loan for the middle school into apartment conversion project, and a resolution to set a public hearing for June 24th to sell 105 North Walnut to Region XII Council of Governments for housing rehabilitation project. They also approved the fourth pay estimate of $35,420, the certificate of completion and the fifth pay estimate, which is the release of the contingency, of $4,344 to Caliber Concrete for the pickleball court project. The Council also approved the 28th pay estimate to Shank Constructors of $21,168 for the Wastewater Treatment Plant improvement project.