CPS Finance Committee hears Broadway TIF presentation

The Broadway Hotel owner and a city consultant explained to Columbia Public School’s Finance Committee why a tax increment finance district is needed to help expand the hotel on Wednesday.

Broadway Hotel owner David Parmley said he plans to build a second tower next door to the hotel. He is asking that the expansion be partially funded through tax increment financing, or TIF, which would put money toward development projects.

Part of the expansion would include 80 more guest rooms, extra meeting space and a boardroom. The additional tower, will have a ballroom and reception area on the roof. Parmley told ABC 17 News that because of increased costs for land and construction, a TIF is needed to help fund this project, which is estimated to cost about $20 million. Parmley is asking for $2 million from tax jurisdictions.

Tony St. Romaine, a city consultant, told ABC 17 News, “We are trying our best to explain that if this TIF passes, then this project will allow taxing jurisdictions to receive more funds than they are currently receiving.”

Currently St. Romaine said tax jurisdictions like CPS are having to split about $4,500 among other taxing jurisdictions for the vacant spot that the new tower will sit on. If the TIF passes, Parmley and St. Romaine said hundreds of thousands will instead be split.

CPS’ Finance Committee raised some concerns regarding how the public would perceive the proposal going forward but ultimately, they won’t make any statement yet.

“We aren’t making comments one way or the other, saying yes we like it or not, I don’t until the final discussion is had,” Christine King, Columbia School Board member said. “It really downplays the open and transparent process.”

The TIF commission meets at 6 p.m. Thursday and the hotel developer and other commission leaders will continue to discuss questions the commission has, including any from the public.