Trittenbach wants pay-as-you-go TIF for development

A story about the second tax-increment financing applicants will appear in the Missourian Thursday morning.

The $17.1 million development proposed for the corner of Tenth and Locust streets will include an 8-story building with retail space (for a grocery store, for example), office space and 58 two-bedroom apartments.

An interesting thing about this TIF application, is that Trittenbach Development has proposed pay-as-you-go financing, instead of bond financing. Instead of receiving a lump sum investment based on estimated property taxes, Trittenbach will receive a portion of the development’s actual property taxes for the next 23 years.

Trittenbach spokesman (and the project’s architect) Brad Wright said this eliminates any credit risk for the city.

Do you think either this project or The Tiger hotel development will get approved for TIF? Should the city favor one type of financing over the other?

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One Response

  1. Using the TIF revenues to reimburse a developer’s cost of infrastructure improvements, rather than using those revenues to service bonds issued by the city, sounds preferable to me, as long as it’s clear what the reimbursement is for and that the obligation to pay the developer doesn’t arise unless the public improvements are completed as designed.

    Developers are optimists, some of them dreamers. The city should not assume risks of development, because most don’t turn out as planned.

    Even though TIF bonds are “special obligations,” not payable from the city’s general revenues, the city is adversely affected in credit markets when the bonds go bad.

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