PITTSBURG — The main discussion during the Pittsburg City Commission meeting on Tuesday was Northgate shopping center.
A group led by Score Development and Block Real Estate Services purchased Northgate as a joint venture in September. The shopping center is located on North Broadway.
The group plans on spending $8 million to “rejuvenate, replenish, revitalize and modernize,” the center, Bob Johnson, representative from Polsinelli Law Firm Associates, LCC, said.
The firm and Score Development Managing Principal Scott Lipovac, presented to the commissioners their renovation plans for the shopping center. Their purpose for coming to the commission was to ask the city to create a Community Improvement District.
According to the Kansas Department of Commerce, CID is a “real estate economic development tool which can be used to finance public or private facilities, improvements and services within a local city or county.”
It can be used to “finance locally approved development-related activities including: property acquisition, infrastructure development, parking and building construction within the district, and can also extend to certain infrastructure improvements outside the designated district, if those improvements are contiguous to the district and are deemed necessary to implement the development plan.”
According to the Kansas Department of Commerce, a “CID can derive revenues through special assessments, a district-only sales tax, or other funds as appropriated by the city or county.”
“Businesses within the district must approve the imposition of a district sales tax or property tax special assessment prior to its establishment.
“Those sales tax and special assessment proceeds are used to pay off bonds issued and/or contribute to the direct reimbursement of project-related costs.”
The special district taxes and special assessments have a maximum term of 22 years.
According to the City of Pittsburg, the developers carry the risk. If the developers do not make as much as they expected or suffer from other risks, the city doesn’t owe them any money.
A formal agreement has not be made yet, and was not the purpose of Tuesday’s meeting. That agreement, if made, will be during the Feb. 12 meeting. The city must put an agreement together and it must be signed by the commissioners.
On Tuesday, the city approved the resolution to make the Northgate complex a Community Improvement District.
“We’re excited to have received approval for the first step,” Lipovac said.
— Stephanie Potter is a staff writer at the Morning Sun. She can be emailed at spotter@morningsun.net or follow her on Twitter @PittStephP and Instagram @stephanie_morningsun.