Council debates pair of CID projects
Amos Bridges- Springfield News-Leader – June 2, 2009
Though discussion of a tight 2009-2010 budget lingered farther down the agenda, the first several hours of Monday's City Council meeting were dominated by a debate over a pair of proposed Community Improvement Districts. The two CIDs -- one for a proposed development near Glenstone Avenue and James River Freeway, the other on Commercial Street -- both would create special taxing districts meant to fund improvements within their boundaries. But as several speakers pointed out Monday, the two proposals differ in significant ways.
Tom Rankin, developer of The Shoppes at James River, plans to build a hotel and restaurant on the property south of Glenstone Avenue and Republic Road. As part of the project, Rankin has agreed to pay for a water retention basin and other improvements. The proposed CID would levy an additional 1-cent sales tax at the hotel and restaurant that would help pay for those upfront costs before being reduced to a level that would pay for continued maintenance. Because the proposed district includes only two property owners -- the city and Rankin -- and both are in favor, only City Council approval is needed to set the tax in effect.
The Commercial Street CID is an entirely different animal. "The primary goal here is to provide services, rather than public improvement," said Mary Lily Smith, the city's economic development director. Supporters hope to use revenue from the CID sales tax -- planned to be set at 1/2 cent, with up to 1-cent possible -- to fund street maintenance, promotions, supplemental police patrols and other services related to special events. Rusty Worley, executive director of the Urban Districts Alliance, said a 1/2-cent tax is expected to raise about $30,000 a year. "This has been an effective tool downtown," he said, noting the Commercial Street proposal resulted from a series of public meetings two years ago. Due to the large number of property owners in the proposed district, supporters had to gather signatures from a majority before bringing the issue before the council. Of the area's 99 property owners, 53 signed the petition, which also gained unanimous support from the Commercial Club. Residents, rather than owners, would have final say on any tax if the CID is approved, however. Because registered voters live in the area, any tax would have to presented by the CID board for a special election.
Reaction varies
Several Commercial Street residents and small business owners spoke in favor of the proposed CID, while others -- including several whose businesses generate a large amount of sales tax revenue -- spoke against it.
Other criticisms were focused on CID taxes more generally. "They kind of come under the radar," said Springfield resident Carl Herd. "You don't know that you're paying this extra sales tax." Tom Martz agreed: "I don't feel that it's right for a consumer to go into a business ... and have money appropriated out of their pocket without their knowledge." Both men asked whether there was some way to make customers aware of additional sales taxes being levied in certain areas -- perhaps by requiring that information to be posted at a business's front door or at the cash register.
The suggestion appeared to have some support from several councilmen, who asked city staff to look into whether the city could require such signage. City Manager Greg Burris said the preliminary opinion was that it could be done as part of the city's business licensing requirements. The council could vote on both CIDs on June 15.
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