The recently approved city budget for 2017-18 includes funds for three commercial improvement districts (CIDs) that were created to increase the sales tax base and provide funds for public improvements.
Taxes collected in the three CIDs have transformed Osage Street from city limit to city limit, including rebuilding the eastbound Interstate 44 interchange, widening West Osage and assisting in the development of Pilot Travel Center and B & H Market, both large sales tax collectors.
Together, improvement projects within the three districts are valued at $10.3 million, funded by federal grants with the CID funds providing for the city’s share of the cost. In most cases that was 20 percent, or approximately $2 million.
Loans on the Viaduct, West Osage and East Osage improvements are paid off. However the three commercial improvement districts (CIDs) continue to collect the special sales tax amassing funds that could see more public works improvements.
Total combined balance in the three CIDs as of July 30, was $654,000, according to City Administrator Steve Roth.
The Viaduct CID was established in July 2007 to collect a special 1 percent tax on all retail sales for up to 20 years from retail establishments located north of Thornton Road and I-44, east of Molly Lane, including a portion south of Thornton Road.
Initially, the CID funds were to be used to facilitate construction and installation of the Pilot Travel Center, a travel and convenience retail center. CID funds were used to reimburse Pilot Travel Center $90,898 for street improvements, stormwater improvement and water service.
The CID also is funding Pacific’s share of two Thornton Road projects, one completed and another now underway.
The budget shows the city expects to collect $60,100 in this CID in the current budget, with a reserve of $139,850, and will spend $101,000 on Thornton Road, leaving an available balance of $98,950.
West Osage CID
The West Osage CID was established in September 2008 to collect a 1 percent sales tax for 20 years from retailers located south of I-44 between Noonan and Cedar drives, including properties located on West Osage (Route 66 and Rose Lane).
Funds were to be used to pay the city’s half of a city of Pacific/MoDOT improvement project to rebuild portions of Viaduct Street and the I-44 eastbound interchange and to widen West Osage to five lanes.
The CID was amended in January 2017 to allow CID taxes collected in the new B&H Market, located in the former Queen’s grocery building, to be reimbursed to the building owners for a period of 10 years.
The budget shows the city expects to collect $100,100 in this CID in the current budget and has a reserve of $179,460 for total available funds of $279,560.
East Osage CID
The East Osage CID was formed in 2013 to collect a 1 percent sales tax for 20 years to provide funds for construction and installation of curbing, gutter, sidewalks, street trees and other street improvements along a portion of East Osage.
The goal was to make the east section of Route 66 match the improved west section for a city limit to city limit image.
The $1,365,053 federal 80-20 matching grant covered the cost project. The city’s portion of the grant was $273,011, plus the cost of engineering, bidding fee and construction administration for a total of $443,325, which was paid for with CID taxes.
Gershenson Construction, Eureka, did the work.
The budget shows the city expects to collect $125,100 in this CID in the current budget and has a reserve of $180,470 for total available funds of $305,570.