South St. Joseph could get a piece of the East-Side development action, thanks to a tax reimbursement of up to $1.8 million.
St. Joseph home builder Scott Gann received an informal go-ahead from the City Council on Wednesday for the incentive on his Fountain Creek project. It could include townhouses, single-family homes, duplexes, apartments and “neighborhood retail” such as a convenience store, small grocery store and bank.
The 68 acres are generally southwest of the intersection of Missouri State Highways 752 (Mason Road) and 371 (22nd Street).
“There hasn’t been this type of development in this part of town for a long time,” said Clint Thompson, the city’s director of Planning & Community Development.
Mr. Gann said he hopes to start construction this year. He lives just south of the development and promises a quality project.
The plan formally calls for 76 townhouse units, which Mr. Gann would build first. He said senior citizens in particular seek townhouses, with neighborhood dues covering maintenance such as lawn mowing.
The rest depends on the market. The flexible plan calls for 55 houses, 19 duplex lots and 40 apartment units.
As for the retail side, Mr. Gann said companies aren’t willing to commit until the site is ready.
“The need for the products are there,” Mr. Gann told the council. “Right now, all your modern retailers and restaurants are on the northeast side of town.”
The city will now begin drafting a “developer’s agreement” with Mr. Gann’s SDG Developments LLC. The council could vote on the incentive as early as June 2. The city earlier approved a rezoning and preliminary layout for the project.
The incentive would give the development less than half of the new city property and sales taxes each year, until the total reimbursement reaches $1.8 million. The deal would not dip into school, county and library taxes like tax increment financing.
Mr. Gann said he wanted to avoid using TIF because “people are tired of hearing about TIF” and turned down chances to apply a special sales tax on the property (a la East Hills Shopping Center).
He also said he declined “a very attractive offer” to sell a portion of the property for subsidized apartments. Mr. Gann from the outset has rejected neighbors’ concerns about housing for immigrant Triumph Foods workers.
“The only people who have got money in this is me, Debbie (his wife) and the bank, and we don’t intend to change that,” Mr. Gann told the council.
Mr. Gann also will not be reimbursed for the interest on his construction loans — again unlike any of the recent TIF projects.
If the project develops slowly, Mr. Gann still will only receive his percentage of the new taxes from the development.
Council members Donna Jean Boyer, Mike Hirter, Joyce Starr, Barbara LaBass and Mike Bozarth attended the meeting.
Joe Blumberg can be reached
at joeblumberg@npgco.com.
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is mr. gann going to pay an impact fee? i don't see that mentioned in this article. since this city has finally stepped into the 19th century ( no, that is not a mistake) and initiated some mild impact fees on greystone? i certainly hope that the trend will continue.........
Posted by JoeBlumberg on May 8, 2008 at 10:31 a.m. (Suggest removal)A response from the reporter:
Posted by BHSGRAD on May 8, 2008 at 12:41 p.m. (Suggest removal)Heritage, the answer is no. This project will not pay any impact fees. (For those who aren't up on all this stuff, the council recently created new sewer and road impact fees for new developments. Greystone was the first to pay any of these impact fees -- $500 per house for sewers, and $500 per house for roads.)
The council did discuss that Wednesday, and here are the answers:
The sewer impact fees couldn't be imposed because Mr. Gann received approval for his "preliminary plat" about two years ago -- long before the fees were created.
The road impact fees couldn't be imposed because the council only created a "transportation district" in northeast St. Joseph. They can't impose a fee without the district in place. (Why they haven't created more districts appears to be a little bit of a political issue -- obviously developers would rather not pay fees, plus the city and Chamber of Commerce worry about the hefty fees that would have to be applied on a new industrial development.)
So basically Mr. Gann is driving down the property values of long time southend residents to fatten his already fat pockets? I'd like to know the approximate value of these homes he is building. If they are between 125-150K home that's great, more of that is needed in that area. If they are 100K or less he is basically pandering the immigrant community and spitting on the southend people who have spent there lives down there. I'll be interested to see where Mike Bozarth stands on this issue, as I'm sure it will be the determining factor if he is relected.
Posted by JoeBlumberg on May 8, 2008 at 1:42 p.m. (Suggest removal)Another response from the reporter:
Posted by heritage on May 8, 2008 at 1:44 p.m. (Suggest removal)Mr. Gann said Wednesday that the townhouses would likely sell for about $180,000 to $190,000, and the single-family homes would probably sell for $225,000 or more.
thanks, joe for that quick clarification! the "transportation district" is a bunch of bunk, IMO. what is good for the goose should be good for the gander. certainly industrial development is creating more need for traffic control, road maintenance? the council dropped the ball on this issue big time, and the chamber of commerce is just dead wrong in thinking that they have to pander to industry in order to attract new development.
Posted by gr8fan on May 9, 2008 at 9:15 a.m. (Suggest removal)Im with BHSGRAD on this one. Mr Gann is still struggling with the project at Glen Oaks that he took over to fill that up and get it all occupied. What would make you think there is a need for additional housing in the area, just across the street from Glen Oaks? The only housing needed in the area is for the Truimph group. A sub standard development would be right in line for Mr. Gann based on the shawty workmanship I have seen on some of his so-called "custom built" homes. Get ready to buy some snake oil south end because the salesman(Gann)is on the way.
Posted by gr8fan on May 9, 2008 at 9:22 a.m. (Suggest removal)Oh and by the way, the group that started Glen Oaks promised the neighbors in the Glen Oaks and Ridgewood Station area that those houses would all be "custom built and in the $225-250,000 range" so as not to diminish from the values of any of the newer houses that had gone in and to help elevate the houses that were older. Those house are mainly spec houses and are only in the upper $100,000's because of the housing market going crazy. They are half the houses they were promised. Mr. Gann I'm sure hasn't changed his colors based on what he did there and he will do the same in the new "projects".
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