The Sedalia City Council Monday approved two vital issues that will impact the city over the next year: The Fiscal Year 2017 budget and the controversial Tax Increment Finance (TIF) district for the Galaxy West Community Improvement District (CID), which is located behind the Galaxy Theater near U.S. Highway 50 and West Main Street and in front of the EconoLodge near Highway 50 and Winchester Road.
A CID requires businesses in the defined area to pay an additional tax to fund projects within the district’s boundaries — in this case, the newly created TIF district.
City economic development consultant Joe Lauber told council Feb. 16, the CID will be governed by a five-person board of directors, with one of them being a city representative. The CID petition included three property owners — MoDOT, Priti Bhakta and Star Acquisitions Inc. Because there are no registered voters residing in the proposed CID, the CID sales tax will be approved through an election process at a later date with those three property owners.
The CID will have an eligible reimbursement of $311,712, which will help pay back the TIF that was approved in November.
“The way this CID is set up is to terminate on the earlier of the reimbursement of all the CID reimbursable costs, or 30 years. So we will not have the sales tax out there perpetually, but it is there to help aid in the paying down of the TIF costs that were assessed,” Lauber explained in a Feb. 17 Democrat article. “… All of the sales tax revenues the CID generates can help to pay down those reimbursables sooner.
City Administrator Gary Edwards said this approval clears the way for the development of the property once CID is established and the sale of the property is formally approved. The land is slated for the development of a retail business, although what specific business is not known.
The city also unanimously approved the FY 2017 budget. Finance Director Kelvin Shaw said at a Feb. 16 budget preview that the city is projecting between 1 and 2 percent sales tax growth for FY17, compared to the current 2 percent growth.