Questions over proposed Jefferson City annexation
Cole County commissioners have questions about a possible Jefferson City annexation.
Next month, the city council is set to vote on a tax increment financing district, or TIF, for the former Truman Hotel property.
The hopeful developers, Puri Group of Enterprises Inc., said they would allow the city to annex two of their other properties if the TIF passes. Those are the Comfort Suites and Hampton Inn off Highway 50.
“I believe annexing them in voluntarily would be a bonus for the city,” Fourth Ward Councilman Glen Costales said. “Not only are we going to pick up some lodging tax and sales tax, but you have to get some other businesses or private residences also into the city because they have to be contiguous. So we’ll also pick up some additional revenue that way.”
The city collects a seven percent lodging tax off all hotels within city limits.
The Cole County Commission was set to make a motion regarding its stance on the annexation Tuesday morning, but it tabled the issue.
“We’re looking into it so we know a little bit more about what it does would truly encompass before we come out in support of it,” Presiding Commissioner Sam Bushman said.
The county would not lose any tax income if the hotels are annexed, but a residential area may be affected, according to Bushman.
“We have a lot of people that live behind it, so that’s what we kind of want to look into and just see whether we’re just talking that little strip of the hotels or if we’re talking more, you know more area,” Bushman said.
Costales said he thought turning down the TIF proposal would deter future development in the city.
“I think it’d be a great economic boom for us. If not we’re gonna sit with that empty there,” Costales said. “I think it would send a message to any developer, any business wanting to come to town- look elsewhere.”
Last month the TIF Commission voted against the TIF proposal in a 7 to 1 vote. But the city council still may pass the plans if it has a two-thirds majority vote.
The TIF will be proposed to the council at its meeting on August 1. A public hearing on the TIF is set for August 15.
