Riverbend Special Business Dist. No.1 & 2: Wood River, MO
Two special business districts (SBD) were established by the city of Wood River to help pay for infrastructure improvements for a redevelopment project.
The Riverbend District No. 2 authorized an additional 1-cent sales tax on a 72-acre redevelopment project, located in the northeastern portion of the city. The SBD will generate $2 million in revenue to help pay for infrastructure improvements at the site. The SBD is anticipated to be in place 5-8 years and will be dissolved after that.
"This is the first time Wood River has created a special business district," Finance Director Nancy Schneider said. "Because of a change in the law, sales tax could be assessed to pay for improvements related to the project. The law allows for the implementation of an extra sales tax of up to 1 cent to generate funds for infrastructure costs," said Schneider.
Riverbend District No. 2 is one of two taxing districts within the redevelopment. The revenue generated by both districts will help offset an estimated $10 million to $12 million in total infrastructure improvements for the project. Riverbend District No. 1, an existing tax increment financing (TIF) district, covers about half of the 72-acre site. Riverbend District No. 1 will generate about $6 million in tax revenue that will be used for financial assistance for the project, most of which will be for infrastructure work. Riverbend District No. 1 was established in 1986 and currently includes a Wal-Mart store, which will be demolished as part of the redevelopment project. This TIF district expires in 2009.
"The intersection of Vaughn Road and Wesley Drive had to be realigned and signalized, there were major storm water management issues, and there were topographic site challenges that had to be addressed," Schneider said. "Most of the public improvements involved these infrastructure issues."
The developer of the project, will pay for any shortfall in infrastructure improvements cost not generated by Riverbend Districts Nos. 1 and 2, according to Schneider.
D2's Role:
Development Dynamics LLC prepared the SBD redevelopment plan, blight study, and revenue projections in advance of approval of the creation of the Districts by the City. Through the establishment of these SBDs the City and Developer were able to work together to address development issues with a cost-effective and accurate strategy.
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