Wednesday, October 14, 2009 4:22 PM CDT

A few years ago Gundaker Development worked to secure a Tax Increment Financing, or TIF, district to aide in the development of a new shopping center at the corner of Maple Street and U.S. 67. Now the developer has come back to the city looking to be reimbursed for spending, as allowed in that earlier agreement.

During last week’s Farmington City Council work session City Administrator Greg Beavers announced Gundaker Development had requested reimbursement for $6.92 million in expenses. As allowed in a TIF, a development can be reimbursed for infrastructure improvements to the area within the described TIF district.

In this case, Gundaker’s development near U.S. 67 and Maple Street falls within an existing TIF district which encompasses both sides of U.S. 67, including portions north and south of Maple Street. The same district takes in the site of the proposed Farmington Crossing shopping complex west of the highway.

But east of U.S. 67, Gundaker has made improvements to a shopping development in the past couple years, and is now asking for an allowable portion of those expenses to be reimbursed. Beavers said the receipts would be reviewed and approved, and then an ordinance would be drafted and put before the council to allow for payment of the bills from TIF funds.

“TIF funds” are derived from a portion of new sales tax revenue collected within the confines of a designated area, or “TIF district”. A “base” line is established by the tax collections in that area at the inception of the TIF. From that point on during the life of the TIF agreement — usually between 20 and 30 years — a portion of tax revenues exceeding that base amount can be returned to developers within the district to be used for improvements ... which are generally done to foster additional retail growth within the confines of the district.

The reimbursement will come from collected tax revenue set aside in the TIF fund, and will not come from the general fund of the city.

There was no indication during the council work session that there would be any problem with approving the requested reimbursements for the developer.

Also during the work session the council heard of two new bills up for a vote later this month.

The first allows for eliminating “through traffic” of heavy trucks on Columbia Street and Ste. Genevieve Avenue. The city recently took over ownership and control of Columbia Street and Ste. Genevieve Avenue from the Missouri Department of Transportation.

With the transfer the city must now assume maintenance, snow clearing and other responsibilities of the stretch of roadway. But the allowance of large trucks utilizing the two streets to travel between U.S. 67 and State Route 32 can also be squelched by city ordinance. The city will allow truck use for local delivery, but enforce “through” traffic by larger trucks to use the U.S. 67 to Business 32/Karsch Boulevard route instead of passing through downtown.

The second ordinance considered by the group would allow for purchase of battery backup systems for five street lights in the city limits.

Councilman Dennis Smith reported that seven contractors attended a meeting about construction of a new fire station downtown, adjacent to the police station. The site has been cleared and is ready for work to begin on the new station.

The council will meet next on Oct. 26 at 6:30 p.m.

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