The Way Now Clear for Family Dollar

The Tax Incremental Financing or TIF commission held a public hearing for comments immediately prior to their first meeting on October 15. There were no public comments submitted prior to the meeting, and no citizen attendees requested time to speak at the hearing. As such, City Administrator and member of the TIF Commission opened the meeting with a presentation on the City’s history from 2006 to 2016 with the proposed TIF district site, the derelict Willow Springs Motel at 503 East Main St. 

 

Calling it “a problem property for some time,” Hicks launched into some eye-opening statistics. There have been 49 criminal incidents there and 84 calls for service. There is a history of outdoor public nuisance issues and nonpayment of utilities. 

 

“Sad to say, we even had a couple of bodies to remove from the premises,” said Hicks. 

 

In December of 2016, the City, accompanied by the police, conducted a full inspection of the premises. At that time, there was no utility service to the location, despite several people, including one family with children, living there. 

 

Hicks showed photos of the conditions highlighting the floors completely covered in mouse droppings, every unit obviously and visibly infested with bedbugs, and one photo showing a child’s backpack on the floor next to a pile of dog droppings indoors. 

 

The motel was placarded as unfit for human habitation at that time. 

 

Since the closure of the motel, the City has maintained mowing and removed a hazardous building on the premises. Hick estimates the City has spent approximately $3,000 on the upkeep of the location. 

 

Criminal activity has continued despite the closure of the motel. Police Chief Bryan Hogan was present, and he confirmed the ongoing criminal activity there. People continue to frequent the buildings as squatters or as a place to engage in illicit drug use. 

 

“It’s a really sad situation,” Hicks concluded, “With this TIF, we have an opportunity to move in another direction.” A TIF district is a blighted area defined by the TIF Commission for to allow for allocation of funds from property taxes to encourage economic development. The developers use the incremental increase in property taxes to partially recover their initial capital investment. 

 

Next a member of the development team, Pat Nasi, spoke. He introduced the developer, Kevin Guffey, who was present at the hearing as well. 

 

The first point Nasi made is that the development group will remain the owners. 

 

“It’s not a fix it and flip it,” he said. 

 

Nasi pointed out that the property, as it sits, does not generate any money for the local economy. By creating a TIF district, there is an incentive for the developer with no risk to the taxpayers of Willow Springs. There is no upfront financial obligation or commitment required by the City. The developer is entirely at risk, Nasi said. The incremental increase in revenue from real estate tax will occur because of the increase in commerce in the TIF district, which is how the developer will recoup a portion of their investment in Willow Springs. Out of the roughly $1.2 million investment, TIF revenues will recover about $869,250 for Guffey Properties. 

 

Guffey Properties will purchase the lot, which had an assessed value of $20,970, from its current owner as part of the Redevelopment Plan. 

 

The benefits to Willow Springs Nasi suggested include the clean-up of a derelict and blighted area of the city, the creation of new jobs, possibly increased property values in the surrounding area, and increased overall commerce in the city. 

 

The TIF increment captures only real estate taxes. Only the taxes above the baseline, as valued by the property’s assessment in 2019, will go to the developer. The remaining funds will continue to go to the tax programs that have always been funded in this manner. 

 

Sales taxes in the Family Dollar will likely be approved at a higher rate, since the TIF district will likely also be designated a Community Improvement District (CID). However, these terms are not determined as of press time. More information is forthcoming as it becomes available. 

 

Kevin Guffey described the new prototype of Family Dollar that he will implement here. It will not be a store in direct competition with Dollar General, he said. The inventory will be heavier on food items than retail offerings. The store will feature 100 feet of coolers and freezers as well as a “snack zone,” said Guffey. 

 

“It’s going to be something that should pull people from outside the city. It’s a new prototype,” he explained. 

 

The public hearing over, the TIF Commission began their meeting. The TIF Commission is helmed by Chairwoman Kim Rich. Other members of the Commission are: Vice-Chair Erik Montgomery, City Attorney Zane Privette, Mayor Brooke Fair, Alderman Troy Yonker, City Administrator Beverly Hicks, Superintendent of Schools Bill Hall, School Board Member Dean Aye, Larry Spence, sitting Northern Commissioner Bill Lovelace, and Jeff Ward. 

 

Chairwoman Rich asked each member of the Commission to describe the feedback they have heard from the community and to offer their own thoughts on the TIF. To a man, every Commissioner reported hearing confusion from the public, but otherwise positive feedback. Every Commissioner expressed a positive opinion of the TIF. 

 

After two readings of the resolution, the Commission unanimously passed the resolution approving the Redevelopment Plan as presented by the developer. 

 

Likewise, the Board of Aldermen unanimously passed by roll call vote Ordinance 1562 approving the Redevelopment Plan and establishing the TIF district. 

 

Neither the property owner, nor any of the owners of the surrounding properties, were present at the public hearing, TIF Commission meeting, or City Council meeting.

 

Confused? See the Quick Guide to the TIF.