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Next week the St. Joseph City Council will vote on a Downtown TIF project that could benefit derelict buildings.

Another big Downtown decision lies ahead for the St. Joseph City Council.

The council will vote next Monday whether to establish a Downtown Tax Increment Financing district to promote redevelopment in a 113-acre area roughly bounded by Interstate 229 on the west, 10th Street on the east, Faraon Street on the north and Charles and Sylvanie streets on the south.

Clint Thompson, city director of planning and community development, said he has received phone calls from a number of business owners curious about how a TIF district would affect them.

“If they never make an improvement or make an application for a TIF, it doesn’t affect them at all,” Mr. Thompson said. “I think the word ‘tax’ may have concerned them. Once I explain to them that their property values may increase, most of them feel a lot better. I haven’t heard any negative comments.”

The TIF has piqued the interest of many Downtown business owners, though most say they don’t understand the program well enough to discuss it in an interview. Others lease their buildings, so they would be reluctant to invest, TIF or not. But if local business leaders say it’s a good thing, Downtown business owners say they’re on board.

The Downtown partnership and the Downtown Association each wrote letters to the council last week requesting approval for the TIF.

Also last week, the City Council voted down an ordinance that would have directed federal stimulus money Downtown, then reversed course three days later. One line of logic for council members who opposed the plan was that it gave preference to Downtown businesses over those in other parts of the city.

“My initial thought Monday night when that thing did not pass was that it did not bode well for the TIF,” Mr. Thompson said. “Overall though, from looking at the last couple years we’ve been working on this project, I think this council is supportive of TIF and Downtown.”

Winston Bennett has found success developing Downtown properties without the help of a TIF. In fact, every one of his retail locations is full. He said he favors the TIF because it could bring not just more development — but better development — to the city’s core.

“Investing in downtown for the sole purpose of tax credits is defensive investing,” Mr. Bennett said. “A TIF is offensive investing. You don’t get paid unless you generate revenue.”

The city plans to activate the TIF in four stages. The first would establish an entertainment district at an estimated cost of $25 million. The district will extend from Fifth Street to Ninth Street with Felix Street at its core, but it will reach north and south to include properties such as the Missouri Theater.

The second stage would create a convention area west of the entertainment district, with a hotel and a new convention center. The third and fourth stages would focus on development in the areas north and south of the entertainment district, east of the convention area.

Mayor Ken Shearin and council members Bill Falkner and Roger Baker own property within the proposed TIF district. All three have indicated they will not vote on the issue, citing a conflict of interest.

Clinton Thomas can be reached

at clintonthomas@npgco.com.