HomeMy Public PortalAboutCapital Mall JC TIF Plan[
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CAPITAL MALL
TAX INCREMENT FINANCING PLAN
Jefferson City, Missouri
CAPITAL MALL JC, LLC
A Missouri Limited Liability Company
DEVELOPER
PREPARED BY:
Polsinelli, P.C.
700 West 4th Street, Suite 1000
Kansas City. Missouri 64 t 12
SUBMITTED TO TIF COMMISSION SEPTEMBER 2013
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TABLE OF CONTENTS
I. SUMMARY ........................................................................................................................ 3
II. DEFINITIONS .................................................................................................................... 8
III. TAX INCREMENT FINANCING ................................................................................... 15
IV. REDEVELOPMENT PLAN AND REDEVELOPMENT AREA ................................... 16
A. Redevelopment Plan Objectives ............................................................................... 16
B. Specific Plan Objectives ............................................................................................ 17
V. EXISTING CONDITIONS IN THE REDEVELOPMENT AREA ................................. I 7
VI. REDEVELOPMENT PROGRAM ................................................................................... 18
A. Redevelopment Activities ........................................................................................ 18
B. General Land Use ..................................................................................................... 19
C. Project Schedule .............................................................................................. 19
VII. FINANCING PLAN ......................................................................................................... 20
A. Special Allocation Fund ............................................................................................ 20
B. Estimated Project Costs ............................................................................................. 20
C. SourceofFunds ......................................................................................................... 21
D. Nature and Term of Obligations ............................................................................... 24
E. Use of Proceeds of Obligations ................................................................................. 25
F. Evidence of Commitments to Finance ....................................................................... 25
VIII. PROCEDURES FOR PAYMENTS TO THE SPECIAL ALLOCATION FUND .......... 25
IX. DISBURSEMENTS FROM SPECIAL ALLOCATION FUND ..................................... 27
X. COST-BENEFIT ANALYSIS .......................................................................................... 28
XI. TERMINATION OF TAX INCREMENT FINANCING ................................................ 29
XII. PROVISIONS FOR AMENDING THE TAX INCREMENT PLAN .............................. 29
XIII. REQUIRED STATUTORY FINDINGS .......................................................................... 30
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I. SUMMARY
This Capital Mall Tax Increment Financing Plan ("Redevelopment Plan .. or "TIF Plan'')
provides for the redevelopment of the Redevelopment Area. which consists of ±78.26 acres at
the northeast comer of Highway 50 & S. Country Club Dr./W. Truman Blvd. in Jefferson City,
Missouri. which is commonly known as the Capital Mall. The Redevelopment Area is bounded
by vacant land/residential development to the west and commercial development to the north.
south, and east. and consists of the following tax parcels:
Table I -Tax Parcel Numbers
1002090002001001
1002040003002036
1002040003002037
1002040004000025001
1002090001001023
1002040004000025003
1002090002001004
100209002001002
1002090002001005
1002090002001006
1002040004000025
1002090001001022
1002090001001024
I 0020900 I 0020 II
Legally described on Exhibit A. the Redevelopment Area currently contains the Capital Mall. JC
Penney. Dillards and outlots within the Capital Mall complex. The JC Penney and Dillards
properties. as well as certain improvements located within the Redevelopment Area. are not
owned by the Developer. The Developer does not anticipate acquiring the currently un-owned
properties within the Redevelopment Area. but is willing to do so to protect the vitality of the
development.
Since its inception. the Redevelopment Area. particularly the Capital Mall. has received
few. if any. capital improvements from its passive out-of-state owners. Through steady
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deterioration caused by a lack of upgrades and maintenance, the Redevelopment Area has
experienced serious decay. As a result, the Redevelopment Area has experienced increasing
vacancy rates. declining sales. and declining interest and commercial activity. which has
decreased both property values within the Redevelopment Area and decreased sales taxes
revenues generated from the Redevelopment Area. The Developer. as a local resident. took on
substantial risk by purchasing the Capital Mall. along with other property within the
Redevelopment Area. in the hopes of transforming the Redevelopment Area into a commercial
hub and further supporting the City and other local taxing districts.
The Redevelopment Area is a blighted area and is not developed to its highest and best
use. as evidenced by the Blight Study attached as Exhibit D. The redevelopment of the
Redevelopment Area will likely have positive effects on the City's economy that extend beyond
the direct impacts within the Redevelopment Area. In addition to blight remediation. the
redevelopment of the Redevelopment Area. for instance. is likely to create economic stability in
a commercial center that has experienced significant economic decline. It will further economic
self-sufficiency within Jefferson City by transforming the Capital Mall into a regional shopping
center. and thus serve as a catalyst for further development and redevelopment within Jefferson
City. But without tax increment financing ( .. TIF .. ) to help defray certain redevelopment costs.
including eradication of blight conditions as set forth in this TIF Plan. redevelopment of the
Redevelopment Area to its highest and best use is unlikely to occur.
The Redevelopment Project will consist of the combination of acquisition. engineering
(and other soft costs). and the rehabilitation and renovation of the existing Capital Mall.
including its infrastructure and amenities.
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This TIF Plan will make the Payments in Lieu of Taxes and Economic Activity Taxes
available to reimburse certain Redevelopment Project Costs. such costs being referred to herein
as Reimbursable Project Costs. on an as-collected basis or to retire bonds or other obligations.
which may be issued at the sole discretion of the City Council. the proceeds of which will be
used to defray Reimbursable Project Costs at the beginning of the Redevelopment Project. as set
forth on Exhibit F. If the Reimbursable Project Costs are allocated to the Redevelopment Project
on an as-collected basis, reimbursement of Reimbursable Project Costs would occur over the life
of the TIF. lfthe Reimbursable Project Costs are allocated to the Redevelopment Project through
a bond issuance. the Payments of Lieu of Taxes and Economic Activity Taxes will be dedicated
to retire the bonds. which will occur over the 23-year term of the TIF. Any bond issuance
associated \l.'ith this TIF Plan will be subject to the sole discretion of the City Council and will
not request an annual appropriation pledge from the City.
In addition. the Developer contemplates the creation of a Community Improvement
District ("CID") that will impose a One Cent ($0.0 I) sales tax ("CID Sales Tax") for the purpose
of providing additional revenue to finance Reimbursable Project Costs and other Redevelopment
Project Costs on an as-collected basis or to retire bonds or other obligations which may be
issued. the proceeds of which will be used to defray Reimbursable Project Costs and other
Redevelopment Project Costs at the beginning of the Redevelopment Project. One half (1/2) of
the CID Sales Tax will be captured as Economic Activity Taxes upon creation of the CID and
imposition of the CID Sales Tax. The remaining one half (1/2) of the CID Sales Tax is
anticipated to be made available by the CID pursuant to the CID Act, a Development Agreement.
and a Cooperative Agreement between the Developer, the bond issuer (if any). and CID.
Presently. the CID Sales Tax is expected to generate Eleven Million Three Hundred Twenty
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Seven Thousand One Hundred Ninety Dollars ($1 1.327.190) in tax revenue. which over the 23~
year tenn of the Redevelopment Project is presently valued at Five Million Ninety One
Thousand Five Hundred Thirty Seven Dollars ($5,091.537). assuming a 7.5% discount rate.
Tennination of TIF shall not affect the CID. and upon such tennination. the full CID Sales Tax
shall be captured by the CID. The C I D is expected to have a lifetime of up to forty ( 40) years.
The aggregate Redevelopment Project Cost for the Redevelopment Project is estimated to
be approximately Thirty Six Million Eight Hundred Eighty Three Thousand Nine Hundred
Seventy Five Dollars ($36.883.975 ). The total Payments in Lieu of Taxes generated by the
Redevelopment Project over a Twenty~Three (23) year period is estimated to be Three Million
Seven Hundred Fifty Eight Thousand Two Hundred Seventy Dollars ($3.758,270). which is One
Million Three Hundred Sixty Three Thousand Six Hundred Forty Dollars ($1 .363,640) present
valued at 7 .5%.
The total Economic Activity Taxes generated by the Redevelopment Project over
Twenty-Three (23) year period is estimated to be Twenty One Million Eight Hundred Seventy
Seven Thousand One Hundred Twenty Four Dollars ($21.877.124). which is presently valued at
Nine Million Two Hundred Forty One Thousand Three Hundred Forty Seven Dollars
($4.149.810). assuming a 7.5% discount rate. Estimated revenues from Payments in Lieu of
Taxes. Economic Activity Taxes, and CID Sales Tax are shown on Exhibit H.
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EXHIBIT A -
EXHIBIT B -
EXHIBIT C -
EXHIBIT D -
EXHIBIT E -
EXHIBIT F -
EXHIBITG -
EXHIBIT H -
EXHIBIT I
EXHIBIT J -
EXHIBIT K -
EXHIBIT L -
EXHIBIT M -
EXHIBIT N -
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APPENDIX
Location and Legal Description of the Redevelopment Area
Project Description
Specific Objectives of Redevelopment Plan
Blight Study
Development Schedule
Sources and Uses & Estimated Redevelopment Project Costs and
Reimbursable Project Costs
Source of Funds
Estimated Annual Increases in Assessed Value and Resulting Payments in
Lieu of Taxes and Economic Activity Taxes over Life of Project
Evidence of Commitment to Finance
Cost-Benefit Analysis, with Economic Impact and Fiscal Impact Analysis
Developer's Affidavit
Development Team Summary
Current Occupants/Tenants
Relocation Plan
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II. DEFINITIONS
As used in this TIF Plan, the following tenns shall mean:
A. Blighted Area: An area which. by reason of the predominance of defective or
inadequate street layout, unsanitary or unsafe conditions, deterioration of site
improvements. improper subdivision or obsolete platting, or the existence of
conditions which endanger life or property by fire and other causes. or any
combination of such factors. retards the provision of housing accommodations or
constitutes an economic or social liability or a menace to the public health. safety,
morals. or welfare in its present condition and use.
B. City: Jefferson City. Missouri.
C. City Council: The governing body of Jefferson City. Missouri.
D. Citv Collector: The collector of Jefferson City. Missouri.
E. City Treasurer: The treasurer of JetTerson City. Missouri.
F. Countv Assessor: The Assessor of Cole County. Missouri.
G. County Collector: The Collector of Cole County, Missouri.
H. CID: The proposed Capital Mall Community Improvement District that would
have the purpose of providing revenue to partially finance (i) Reimbursable
Project Costs: and (ii) other Redevelopment Project Costs that qualify as CID
costs pursuant to the CID Act.
I. CID Act: The Community Improvement District Act. Sections 67.140 I. el seq •.
Revised Statutes of Missouri. as amended.
J. CID Revenue: That portion of the revenue derived from the CID Sales Tax that
does not constitute an Economic Activity Tax.
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CID Sales Tax: The One Cent ($0.01) sales tax levied by the CID.
Debt Service: The amount required for the payment of interest and principal on
Obligations as they come due. for the payment of mandatory or optional
redemption payments. and for payments to reserve funds required by the terms of
Obligations.
Developer: The developer selected by the City to implement this TIF Plan
pursuant to a Development Agreement. The proposed Developer under this TIF
Plan is Capital Mall JC. LLC. its successors and/or assigns.
Development Agreement: The agreement to be executed by the City and the
Developer setting forth the rights and obligations of the Developer relating to the
redevelopment of the Redevelopment Area. the construction of the
Redevelopment Project and the payment and/or reimbursement of Reimbursable
Project Costs and other Redevelopment Project Costs.
Economic Activity Account: The separate segregated account within the Special
Allocation Fund into which Economic Activity Taxes are to be deposited.
Economic Activity Taxes: Fifty percent (50%) of the total additional revenue
from taxes. penalties and interest which are imposed by the City or other Taxing
Districts. and which are generated by economic activities within the
Redevelopment Project Area. over the amount of such taxes generated by
economic activities within the Redevelopment Project Area in the calendar year
prior to the adoption of the Redevelopment Project for the Redevelopment Project
Area by Ordinance. while tax increment financing remains in effect. but
excluding personal property taxes. taxes imposed on sales or charges for sleeping
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rooms paid by transient guests of hotels and motels. taxes levied pursuant to
Section 70.500. RSMo. licenses. fees or special assessments other than Payments
In Lieu ofl'axes and penalties and interest thereon.
Financing Costs: All costs reasonably incurred by the Developer. the City or other
issuer authorized by the City or the CID in furtherance of the issuance of Private
Loans or Obligations. including but not limited to interest. loan fees and points
not exceeding one percent (I%) of the principal amount of the loan. loan
origination fees not to exceed two percent (2%) of the principal amount of the
loan. and interest payable to banks or similar financing institutions that are in the
business of loaning money. plus reasonable fees and expenses of the Developer's
or City's attorneys (including City Attorney. special TIF counsel, and bond
counsel). the Developer's or City's administrative fees and expenses (including
planning and/or financial consultants). undenvriters' discounts and fees. the costs
of printing any Obligations and any official statements relating thereto, the costs
of credit enhancement. if any. capitalized interest. debt service reserves and the
fees of any rating agency rating any Obligations. Any costs related to the
financing of non-Reimbursable Project Costs shall not be a Financing Cost or a
Reimbursable Project Cost. Unless expressly agreed to by Ordinance. Financing
Costs shall not include any interest accruing on Developer's equity investment in
the Redevelopment Projects.
Obligations: Bonds. loans. debentures. notes. special certificates. or other
evidences of indebtedness issued by the TIF Commission. the City, or the CJD
each with the prior written approval of the City Council. to pay or reimburse all or
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any portion of Reimbursable Project Costs incurred or estimated to be incurred. to
finance the cost of issuing such Obligations. to establish reserves to refund or
secure such Obligations. to finance the interest costs associated with such
Obligations or to refund, redeem or defease outstanding Obligations.
Ordinance: An ordinance enacted by the City Council.
Payments in Lieu of Taxes or .. PILOTS'': Revenues from real property taxes in
the Redevelopment Project Area selected for the Redevelopment Project which
are to be used to reimburse the Reimbursable Project Costs, which Taxing
Districts would have received had the City not adopted tax increment allocation
financing. and which result from levies made after the time of the adoption of tax
increment allocation financing within the Redevelopment Project Area, and
during the time the current equalized value of real property in the Redevelopment
Project Area exceeds the Total Initial Equalized Assessed Value of real property
in the Redevelopment Project Area. until the designation is terminated pursuant to
this TIF Plan which shall not be later than Twenty~ Three (23) years after the
Redevelopment Project for the applicable Redevelopment Project Area is
approved. excluding. however, the blind pension fund tax levied under the
authority of Article Ill. Section 38(b) of the Missouri Constitution. and the
merchant's and manufacturer"s inventory replacement tax levied under the
authority of Article X. Section 6(2) of the Missouri Constitution.
Payments in Lieu of Taxes Account: The separate segregated account within the
Special Allocation Fund into which Payments in Lieu of Taxes are to be
deposited.
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V. Private Loans: private loans obtained by the Developer. or its successors. assigns
or transferees. from third party private lending institutions to fund Reimbursable
Project Costs.
W. Redevelopment Area: The real property legally described on Exhibit A for which
the City has made a finding that there exist conditions which cause the area to be
classified as a Blighted Area, an Economic Development Area. a Conservation
Area. or a combination thereof.
X. Redevelopment Plan: This Capital Mall Tax Increment Financing Plan. which
represents a comprehensive program of the City for redevelopment intended by
the payment of certain specified redevelopment costs to reduce or eliminate those
conditions. the existence of which qualified the Redevelopment Project Area as an
Economic Development Area. Conservation Area, or Blighted Area. or a
combination thereof. and to thereby enhance the tax bases of the taxing districts
which extend into the Redevelopment Area.
Y. Redevelopment Project: The renovation and rehabilitation of the Capital Mall, as
set forth in this TIF Plan and in the Development Agreement.
l. Redevelopment Project Area: The area selected for the Redevelopment Project.
AA. Redevelopment Project Costs: The sum total of all reasonable or necessary costs
incurred or estimated to be incurred. and any such costs incidental to this
Redevelopment Plan or the Redevelopment Project, as applicable. Such costs
include, but are not limited to. the following:
I. Costs of studies. surveys. plans and specifications;
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2. Professional service costs. including. but not limited to. architectural.
engmeenng. legal. marketing. financial. planning or special serv1ces
(except for reasonable administrative costs of the TIF Commission, such
costs shall be allowed only as an initial expense, and are included in the
costs set forth in this TIF Plan for the Redevelopment Project):
3. Property assembly costs. including. but not limited to, acquisition of land
and other property. real or personal. or rights or interests therein.
demolition of buildings. and the clearing and grading of land:
4. Costs of rehabilitation. reconstruction. or repair or remodeling of existing
buildings and fixtures and appurtenant facilities such as parking lots.
landscaping and lighting:
5. Initial costs for an economic development area (as defined in the Act):
6. Costs of construction of public works or improvements:
7. Financing Costs. including. but not limited to. all necessary and incidental
expenses related to the issuance of Obligations, and \Vhich may include
payment of interest on any Obligations issued hereunder accruing during
the estimated period of construction of the Redevelopment Project for
which such Obligations are issued and for not more than eighteen months
thereafter. and including reasonable reserves related thereto:
8. All or a po11ion of a Taxing District's capital costs resulting from the
Redevelopment Project necessarily incurred or to be incurred in
furtherance of the objectives of this TIF Plan and such Redevelopment
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Project. to the extent the City by written agreement accepts and approves
such costs:
9. Relocation costs to the extent that the City determines that relocation costs
shall be paid or are required to be paid by federal or state law; and
I 0. Payments in lieu of taxes.
Reimbursable Project Costs: The portion of the Redevelopment Project Costs set
forth on Exhibit F as Reimbursable Project Costs and which are incurred by the
Developer pursuant to a mutually agreeable Development Agreement between the
City and the Developer and all Redevelopment Project Costs which are incurred
by the City and/or the TIF Commission.
Special Allocation Fund: The fund that contains two separate segregated
accounts. maintained by the City Director of Finance. into which, as required by
the Act. all PILOTS and Economic Activity Taxes are to be deposited.
Taxing District: Any political subdivision of the State of Missouri located wholly
or partially within the Redevelopment Area having the power to levy taxes.
TIF Act: The Real Property Tax Increment Redevelopment Act. Missouri
Revised Statutes. Section 99.800 through 99.865.
TIF Commission: The Tax Increment Financing Commission of Jefferson City.
Missouri.
Total Initial Equalized Assessed Value: That amount certified by the County
Assessor which equals the most recently ascertained equalized assessed value of
each taxable lot. block. tract. or parcel of real property within the Redevelopment
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Project Area immediately after tax increment financing for the Redevelopment
Project Area has been approved by the City Council by an Ordinance.
III. TAX INCREMENT FINANCING
This Redevelopment Plan is adopted pursuant to the TIF Act. The TIF Act enables
municipalities to finance certain Redevelopment Project Costs with the revenue generated (a)
from PILOTs resulting from increased assessed valuation on new development and. subject to
annual appropriations. and (b) from Economic Activity Taxes resulting from increased economic
activities in the Redevelopment Project Area. It is initially anticipated that the Developer will be
reimbursed on a .. pay-as-you-go .. basis as TIF revenues are collected annually. If market
conditions are favorable. the TIF Commission. City. or CID. with the prior written consent of the
City in each case. and at the sole discretion of the City Council. may issue Obligations to finance
Reimbursable Project Costs. as pennitted by law. The Developer will not request the City to
back Obligations with an annual appropriation pledge. In the event Obligations only partially
fund Reimbursable Project Costs. to the extent that TIF Revenues exceed the amount required to
repay the Obligations. such excess TIF Revenues will be used to reimburse the Developer for
Reimbursable Project Costs not paid from the proceeds ofthe Obligations.
Immediately after the City Council approves a Redevelopment Project and adopts tax
increment financing for the Redevelopment Project Area. the County Assessor shall certify the
Total Initial Equalized Assessed Value of the Redevelopment Project Area. Real estate taxes
(including penalties and interest thereon) resulting from: (I) all taxes levied on the Total Initial
Equalized Assessed Value for the Redevelopment Project Area; (2) the blind pension fund tax
levied under the authority of Article Ill. Section 38(b) of the Missouri Constitution, and (3) the
merchant's and manufacturer·s inventory replacement tax levied under the authority of Article
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X. Section 6(2) of the Missouri Constitution. will be payable to Taxing Districts as if tax
increment financing were not adopted. PILOTs (including applicable penalties and interest)
collected from owners of property within the Redevelopment Project Area will be paid by the
County Collector to the City Director of Finance and deposited in the PILOT Account within the
Special Allocation Fund. In addition, the Economic Activity Taxes generated within the
particular Redevelopment Project Area shall be paid by the collecting Taxing Districts to the
City Director of Finance, who shall deposit such funds in the Economic Activity Account within
the Special Allocation Fund.
I~ REDEVELOPMENTPLANANDREDEVELOPMENTAREA
The Tax Increment Financing Commission of Jefferson City. Missouri (the '"TIF
Commission"") proposes to undertake the redevelopment of the area described on Exhibit A (the
··Redevelopment Area"") in accordance with the terms of this Redevelopment Plan.
For the purpose of redeveloping the Redevelopment Area. the Redevelopment Plan has
been prepared and may be recommended to the City Council. Developer will implement the
Redevelopment Plan and complete the Redevelopment Project pursuant to a mutually agreeable
Development Agreement between the City and the Developer.
A. Redevelopment Plan Objectives
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The general objectives of this TIF Plan are:
I. To reduce or eliminate the blighted conditions of the Redevelopment Area
and prevent the blight from spreading.
2. To enhance the tax base of the City and other Taxing Districts by
development of the Redevelopment Area to its highest and best use and
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encouraging private investment in the Redevelopment Area and the
surrounding areas.
3. To discourage commerce from moving operations to another state, create
economic stability at in the Redevelopment Area and the City. and
facilitate economic self-sufficiency within the Redevelopment Area and
the City.
4. To increase employment in the City.
5. To enhance the aesthetics of the Redevelopment Area.
6. To serve as a catalyst for further high quality development and
redevelopment in the City.
B. Specific Plan Objectives
Specific objectives of the Redevelopment Plan are set forth on Exhibit C.
V. EXISTING CONDITIONS IN THE REDEVELOPMENT AREA
A study of the Redevelopment Area has been conducted documenting the existing blight
conditions and is attached as Exhibit D. As detailed in the attached Blight Study Report, the
Redevelopment Area's significant blight is a result of the predominance of a combination of
factors. including substantially deteriorated and deteriorating site improvements. defective and
inadequate street layout. improper and obsolete platting. unsanitary and unsafe conditions. and
conditions which endanger life and property by fire. As a result of the predominance of these
factors. the Redevelopment Area has become an economic and social liability and a menace to
the public health. safety. morals. and welfare in its present condition and use. The extent of the
blight and obsolescence of this 1970's mall and the rehabilitation needed to alleviate these
conditions at the Capital Mall. after taking into consideration market rate rents and the recent
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economic struggles of the current anchor tenants (e.g .. JC Penney and Sears). has made
alternative forms of financing infeasible. Alternative financing that the Developer has explored
and considered is traditional debt financing. mezzanine debt financing. and various joint
venture/partnership capital contributions structures. The Developer has also considered other
avenues of public contribution. such as tax abatement through Chapter I 00 bonds. After
exploring these options, it is abundantly clear that without TIF. the private benefits from the
rehabilitation efforts do not justify the costs incurred to rehabilitate Capital Mall.
VI. REDEVELOPMENT PROGRAM
A. Redevelopment Activities
1. Acquisition. Developer has acquired a large portion of the Redevelopment
Area. The Developer owned/controlled portion includes the land and
improvements consisting of the Capital Mall. but excluding the adjacent
JC Penney and Dillards parcels and certain improvements within the
Redevelopment Area. The tax parcels owned by the Developer are as
follows:
Tab I e2-D 0 d/C eve oper wne 'ontrol led P reels a
1002090002001001
1002040003002036
1002040004000025003
1002090002001004
100209002001002
1002090002001005
1002090002001006
1002040004000025
1002090001001022
1002090001001024
100209001002011
2. Developer Responsibilities. To achieve the objectives ofthis TIF Plan. the
Developer will perform or cause to be performed the design. rehabilitation
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and construction of the Redevelopment Project in accordance with this
TlF Plan and the Development Agreement. which will be executed
between the City and the Developer.
3. Relocation Assistance. Although there is no guarantee that expiring tenant
leases \Viii be renewed. no businesses or other occupants shall be displaced
as part of this Redevelopment Plan or the Redevelopment Project. While
it is not anticipated that there will be a need for any relocation assistance.
a Relocation Plan has been attached hereto as Exhibit N. as required by the
TIF Act.
B. General Land Use and Comprehensive Plan
A description of the proposed Redevelopment Project is attached hereto as Exhibit B.
After completion of the Redevelopment Project. the Redevelopment Area will continue to
function as the Capital Mall. and it shall remain a regional commercial center. The
Redevelopment Project and Redevelopment Area are currently zoned C· I. Neighborhood
Commercial. During and after construction of the Redevelopment Project. it shall be subject to
the applicable provisions of the City's zoning ordinance as well as other codes and ordinances as
may be amended from time to time.
The Redevelopment Plan is consistent with the Comprehensive Plan of the City. For
example. the Comprehensive Plan of the City states that "[f]uture development should be
encouraged to be designed in a unified scheme to limit access points with internally accessed
out-parcels.·· The Comprehensive Plan credits the Capital Mall for .. better site development
designs'' under the goals of the City's Comprehensive Plan.
C. Project Schedule
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The proposed development schedule is set forth on Exhibit E. which is incorporated
into this subsection as though set out in full.
VII. FINANCING PLAN
A. Special Allocation Fund
The City Treasurer shall establish and maintain the Special Allocation Fund. which shall
contain two separate segregated accounts. PILOTs shall be deposited into the PILOT Account
within the Special Allocation Fund. and Economic Activity Taxes shall be deposited into the
Economic Activity Account within the Special Allocation Fund. PILOTs and Economic Activity
Taxes so deposited and any interest earned on such deposits will be used and pledged for the
payment of Reimbursable Project Costs. including the retirement of Obligations. if any. and for
the possible distribution to the Taxing Districts. in the manner set forth in Article IX of the
Redevelopment Plan.
B. Estimated Project Costs
Redevelopment Project Costs mean and include the sum total of all reasonable and
necessary costs incurred or estimated to be incurred. and any such costs incidental to a
redevelopment plan or redevelopment project. as applicable. in implementing the Redevelopment
Plan and the Redevelopment Project.
Reimbursable Project Costs mean and include all reasonable and necessary costs allowed
by the TIF Act. incurred by the City and/or the TIF Commission and those specified
Reimbursable Project Costs incurred by the Developer pursuant to a mutually agreeable
Development Agreement between the City and the Developer in such amounts as are set forth on
Exhibit F. Currently. total Redevelopment Project Costs are estimated at Thirty Six Million
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Eight Hundred Eighty Three Thousand Nine Hundred Seventy Five Dollars ($36.883,975). plus
Financing Costs.
Neither the City nor the TIF Commission shall have any obligation to reimburse any
Reimbursable Project Cost unless and until funds are available in the Special Allocation Fund to
pay such reimbursement. Further, notwithstanding anything to the contrary contained in this TIF
Plan, all of Developer's rights under this TIF Plan are subject to Developer's compliance with all
of the obligations of this TIF Plan and the Development Agreement. including but not limited to.
the completion (as such term is defined in the Development Agreement) of the Redevelopment
Project pursuant to the terms and conditions of this TIF Plan and the Development Agreement.
All Reimbursable Project Costs approved and certified by the City will bear an interest
rate equal to the actual rate of interest paid on amounts used to fund Reimbursable Project Costs
from the time such Reimbursable Project Costs are incurred to the time they are reimbursed as
Reimbursable Project Costs. This interest shall be classified as Reimbursable Project Costs and
shall be reimbursed according to the reimbursement process provided in the Development
Agreement. The costs of issuing any Obligations shall also be Reimbursable Project Costs, but
only after such costs are approved. on an Obligation-by-Obligation basis. in writing by the City
Council. Estimated Redevelopment Project Costs and Reimbursable Project Costs are set out on
Exhibit F.
C. Source of Funds
Anticipated sources and amounts of funds to pay all of the Redevelopment Project Costs
are shown on Exhibits F and G.
PILOTs and Economic Activity Taxes shall be available for reimbursement of
Reimbursable Project Costs on an as-collected basis or to retire Obligations that may be issued in
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accordance with this plan. the proceeds of which will be used to defray Reimbursable Project
Costs at the beginning of the Redevelopment Project. Estimated Reimbursable Project Costs are
set forth on Exhibit F and far exceed the expected PILOTs and Economic Activity Taxes
available for the Redevelopment Project. Assuming a pay·as-you-go framework, it is estimated
that PILOTs and Economic Activity Taxes will pay for approximately Ten Million Six Hundred
Four Thousand Nine Hundred Eighty Seven Dollars ($10.604,987) (present valued at 7.5%) of
Redevelopment Project Costs. As such. the ratio of TIF assistance to total Redevelopment
Project Costs is approximately Twenty Eight Percent (28%).
As will be stated in the Development Agreement and Cooperative Agreement. all
revenues collected from the proposed CID Sales Tax shall be available for reimbursement of
Redevelopment Project Costs and Reimbursable Project Costs on an as-collected basis or to
retire Obligations that may be issued. the proceeds of which will be used to defray
Redevelopment Project Costs and Reimbursable Project Costs at the beginning of the project.
Assuming a pay-as-you-go framework, it is estimated that revenues from the CID Sales Tax will
pay for approximately Five Million Ninety One Thousand Five Hundred Thirty Seven Dollars
($5.091.537) (present valued at 7.5%) of Redevelopment Project Costs (plus interest).
Developer anticipates that it will obtain financing or provide capital to make up the
difference between total Redevelopment Project Costs and all revenues available for
reimbursement of Redevelopment Project Costs discussed above.
Calculations of expected proceeds of PILOTs are based on current real property
assessment formulas and current property tax rates. both of which are subject to change due to
many factors, including statewide reassessment. the effects of real property classification for real
property tax purposes. and the rollback in tax levies resulting from reassessment or classification.
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Likewise. calculations of expected additional Economic Activity Taxes are based on current
sales tax estimates and projected sales tax gro\\1h. and are based on numerous factors set forth in
this TIF Plan. and may be subject to change or adjustment for multiple reasons. including general
market conditions.
42411005 12
I. Payments in Lieu ofTaxes
a. Most Recent Assessed Valuation
The total initial equalized assessed valuation of the Redevelopment Area
according to records at the Cole County Assessor's Office is Eight Million Five
Hundred Ninety Seven Thousand One Hundred Eighty Two Dollars ($8.597.182).
b. Anticipated Assessed Valuation and Payments in Lieu of Taxes
This Redevelopment Plan. for the reasons described above. estimates that
the Redevelopment Area's assessed value following completion of the
Redevelopment Project will be Nine Million Forty One Thousand Twenty Two
Dollars ($9.041.022). increasing each year by two percent annually and. during
the first five years. increasing by One Hundred Eighty One Thousand Four
Hundred Seventy Two Dollars ($181.472) annually on account of the future
development of four vacant outparcels.
c. Surplus PILOTs
The amount of PILOTs in excess of Reimbursable Project Costs. not
counting any retention of funds for the payment of future Reimbursable Project
Costs. will be declared as surplus and will be available for distribution to the
various Taxing Districts in the Redevelopment Project Areas in the manner
provided by the Act.
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2. Economic Activity Taxes
a. Current Economic Activity Taxes
The current annual tax revenues resulting from economic activities in the
Redevelopment Project Area are approximately Five Million Five Hundred
Eighty Four Thousand One Hundred Sixteen Dollars ($5,584.116), which is based
on the current estimated total annual sales of Seventy Two Million Two Hundred
Eighty Six Thousand Two Hundred Eighty Six Dollars ($72.286,286).
b. Anticipated Economic Activity Taxes
Upon completion of the Redevelopment Project. the total annual sales in
the Redevelopment Project Area are estimated to be Seventy Five Million Seven
Hundred Eighty Two Thousand Eighty Hundred Sixty Seven Dollars
($75.782.867). The increase in sales by year is shown on Exhibit H. as are Fifty
Percent (50%) of the resulting Economic Activity Taxes available to pay
Reimbursable Project Costs.
c. Surplus Economic Activity Taxes
The amount of Economic Activity Taxes in excess of Reimbursable
Project Costs. not including the retention of funds for the payment of future
Reimbursable Project Costs. will be declared as surplus and will be available for
distribution to the various Taxing Districts in the Redevelopment Project Area in
the manner provided by the Act.
D. Nature and Term of Obligations
Although it is not anticipated that Obligations will be immediately issued.
Obligations may be issued. at the sole discretion of the City Council, pursuant to the
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Redevelopment Plan for a term not to exceed Twenty-Three (23) years at an interest rate
determined by the issuer and underwriter and approved by the City. Revenues received
in excess of One Hundred Percent ( 100%) of funds necessary for the payment of costs of
issuance, principal. and interest on the Obligations may be used to call Obligations in
advance of their maturities. To the extent there are any excess TIF Revenues following
the retirement of Obligations. such excess shall be used to reimburse the Developer for
Reimbursable Project Costs not paid from the proceeds of the Obligations. Any
remaining TIF revenues shall be declared a surplus and distributed to the Taxing Districts
(but only after a determination that there are no Reimbursable Project Costs expected in
the future).
E. Proceeds of Obligations
The proceeds of Obligations. if issued at the sole discretion of the City Council.
shall be used to pay for Reimbursable Project Costs incurred.
F. Evidence of Commitment to Finance
Attached as Exhibit G and Exhibit I. Developer has included a Sources of Funds
and evidence of commitment to finance that portion of the Redevelopment Project Costs
that are not paid for by revenues from PILOTs. Economic Activity Taxes. and CID Sales
Taxes. The commitment to finance is contingent upon the approval and adequacy of TIF
and CID assistance.
VIII. PROCEDURES FOR PAYMENTS TO THE SPECIAL ALLOCATION FUND
A. Payments in Lieu ofTaxes
Following the designation of a Redevelopment Project Area, for as long as the
Redevelopment Project Area is subject to tax increment financing. the County Assessor shall
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determine the assessed value of such Redevelopment Project Area without regard to tax
increment financing. The County Collector and City Collector shall collect sums due from real
property within such Redevelopment Project Area in accordance with the current equalized
assessed valuation and tax levies in effect for each year. The amount collected which represents
PILOTs shall be paid by the County Collector and the City Collector within Thirty (30) days
after collection to the City Treasurer who shall immediately deposit the amount paid into the
PILOT Account within the Special Allocation Fund. to be utilized and expended in accordance
with the Act and the Redevelopment Plan.
B. Economic Activity Taxes
Following the designation of a Redevelopment Project Area. for as long as the
Redevelopment Project Area is subject to tax increment financing. Economic Activity Taxes
shall be determined and deposited into the Economic Activity Fund within the Special
Allocation fund in accordance with the following procedures:
I. Documentation of Economic Activity Taxes Paid by Taxpayers
The Developer will use commercially reasonable efforts to include in all future
leases, deeds and other instruments of conveyance provisions to ensure that no later than
Thirty (30) days following payment of any Economic Activity Tax, there is presented to
the City Treasurer documentation of the type and amount ofthe Economic Activity Taxes
paid by all persons and entities operating within the Redevelopment Project Area. The
documentation presented must clearly establish the type and amount of taxes paid and
transactions that generated Economic Activity Taxes and may include actual tax returns.
original sales records or similar specific business records of the person or entity operating
within the Redevelopment Project Area. its tenants and successors in interest. Each
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person or entity collecting and remitting sales tax within the Redevelopment Project Area
shall also be required to provide an authorization allowing the Missouri Department of
Revenue to release to the City the aggregate sales tax figures for all of such persons' or
entities' businesses within the Redevelopment Project Area.
2. Certification by City Council
The City CounciL following reasonable research and investigation. using
independent consultants. accountants and counsel when appropriate. shall certify the
nature and amount of Economic Activity Taxes payable by each Taxing District from
which Economic Activity Taxes are due.
3. Presentation to Taxing Districts
The City Council. or its authorized designee. shall deliver by mail or hand
delivery its certification of Economic Activity Taxes payable by each Taxing District to
the governing body of each such Taxing District. Each Taxing District shall within
Thirty (30) days of receiving the certification or within Thirty (30) days after receiving
any such Economic Activity Tax. whichever is later. appropriate the amount of Economic
Activity Taxes actually received and pay the appropriate sum to the City Treasurer.
4. Deposit of Funds
The City Treasurer shall deposit the payments of Economic Activity Taxes
received from the respective Taxing Districts in the Economic Activity Account in the
Special Allocation Fund. to be utilized and expended in accordance with the Act and the
Redevelopment Plan.
IX. DISBURSEMENTS FROM SPECIAL ALLOCATION FUND
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All disbursements from the Special Allocation Fund will be made by the City Treasurer
out of the two separate segregated accounts maintained within the Special Allocation Fund for
PILOTs and Economic Activity Taxes in proportion to their respective balances at the time of
making a disbursement. On each distribution date. the City Treasurer shall disburse from the
Special Allocation Fund in the following manner and order of preference:
First. to pay the reasonable Reimbursable Project Costs of the City and the TIF
Commission;
Second. to pay Debt Service on Obligations at the times and in the amounts provided for
by the terms of the Obligations. if any;
Third. to pay for or reimburse Developer for Reimbursable Project Costs that were not
financed by Obligations:
Fourth. following the completion of the Redevelopment Project. the retirement of all
Obligations. and the payment of and/or reimbursement of Developer, the City. and the
TIF Commission for all Reimbursable Project Costs incurred or anticipated. funds
remaining in the Special Allocation Fund shall be disbursed by the City Treasurer to the
appropriate Taxing Districts in accordance with the Act.
X. COST -BENEFIT ANALYSIS
A cost-benefit analysis showing the economic impact of this TIF Plan on each Taxing
District is included in the analysis attached as Exhibit J. In addition. the cost-benefit analysis
shows the fiscal impact on the jurisdictions if the Redevelopment Project is undertaken or not
undertaken.1 The projections in Exhibit J are based on market assumptions, including those
1 Please note that fiscal impact may also include the impact of additional City services associated with the Project,
but because those services are already provided and because the Redevelopment Project is at an existing commercial
facility, the impact on additional City services is likely negligible. As such. for purposes of the fiscal impact
analysis. this TIF Plan only includes the fiscal impact of redirected tax revenues via TIF.
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outlined in the assumptions and projections contained in the attached Exhibit J and Exhibit H.
These market assumptions and the Cost/Benefit analysis shows the market feasibility of the
proposed Redevelopment Project if the Redevelopment Project is built and is not built. Based on
these assumptions and economic impact analysis, the Redevelopment Project is not only feasible,
but a much-needed boost to the Jefferson City economy.
The cost-benefit analyses and the tax impact analyses were constructed by Polsinelli PC
and provides sufficient information to evaluate and support the financial feasibility of the
Redevelopment Project as proposed. Based on the Pro Forma. tax impact analyses and cost-
benefit analyses, the projected Ten Million Six Hundred Four Thousand Nine Hundred Eighty
Seven ($1 0,604.987) (present valued at 7.50%) of TIF Revenue generates additional tax revenue
to all current taxing jurisdictions (including the State) of Eighty Eight Million Seven Hundred
Seventeen Thousand Three Hundred Seventeen Dollars ($88, 717.317). after subtracting the tax
revenue redirected by TIF and considering the potential loss of tax revenue if the Redevelopment
Project fails to move forward. The total anticipated increase in tax revenue generated by the
Redevelopment Project that benefits only the City is estimated at Fourteen Million Eight
Hundred Five Thousand Fourteen Dollars ($14.805,014).
XI. TERMINATION OFT AX INCREMENT FINANCING
Tax increment financing for the Redevelopment Project Area shall remain in effect until
the Redevelopment Project has been constructed, all Obligations repaid. and all Reimbursable
Project Costs incurred or to be incurred pursuant to this TIF Plan have been reimbursed. At such
time (but in no event later than Twenty-Three (23) years from the date on which tax increment
financing is adopted for the Redevelopment Project Area), tax increment financing shall be
terminated by the adoption of an Ordinance of the City Council terminating the designation of
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tax increment financing in any such Redevelopment Project Area, or by any other method
authorized by the TIF Act.
XII. PROVISIONS FOR AMENDING THE TAX INCREMENT PLAN
The Redevelopment Plan and Project may be amended pursuant to the provisions of the
TIF Act.
XIII. REQUIRED STATUTORY FINDINGS
With the approval of this TIF Plan. the TIF Commission and the City Council have. as
required by the TIF Act. made the findings set forth below. based upon the record of the public
hearing on the Plan. including but not limited to the blight study attached as Exhibit D and the
affidavit of the Developer attached as Exhibit K.
Blighted Area. The Redevelopment Area on the whole is a Blighted Area.
Expectations for Development-"But For TesC. The Redevelopment Area on the whole
has not been subject to growth and development through investment by private enterprise and
would not reasonably be anticipated to be developed to its highest and best use without the
adoption of tax increment financing due to the substantial cost to ameliorate the blighted
condition ofthe Redevelopment Area.
Conforms to Comprehensive Plan of the City. This TIF Plan is in conformity with the
City's Comprehensive Plan.
Date to Adopt Redevelopment Project. The Ordinance approving the last of the
Redevelopment Projects to be approved will not be adopted later than ten years from the
adoption of this Tl F Plan.
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Date to Co mplet e Red eve lopm ent. T he es tim ated dat e to co mpl ete th e Redeve lop ment
Project has been sta ted and s uc h da te is not more th an twe nt y-th ree (23) yea rs fr o m th e adop t io n
o f th e Ordin ance approv ing th e Redeve lo pm ent Projec t.
Dat e to Retire Obligati ons. In th e eve nt Obli ga ti ons are iss ued to finan ce Reimbur sa bl e
Proj ec t Cos ts. it is anticipat ed that suc h O bli ga ti ons will be retire d in less than Twe nt y-Thr ee
(23) yea rs fr o m th e ad opti on o f th e Ordin a nce approv in g th e Redeve lopm ent Proj ec t.
Re locati on Ass istan ce . Beca use th e Redeve lopm ent Pl an does not di spl ace an)
bu sin esses or occ up ant s in th e Redeve lopm ent Area. th e re will be no nee d fo r re loc ati on
ass istance. Neve rth eless. a Re locati on Pl an has bee n in c lud ed as Ex hibit N.
Cost-B e nefit An a lys is . T he cos t-benefit ana lys is includ ed o n Ex hibit J s hows the
eco nomi c imp ac t of thi s TIF Pl an on each Tax in g Di strict. The an a lys es s how th e impa ct on th e
eco no my if the Redeve lopm e nt Proj ec t is built a nd if th e Rede ve lo pm ent Pr oject is not built
pursuant to thi s TI F Plan . The ana lyses in c lud e a fi sca l impa ct stud y on eve ry Tax in g Dis tri ct.
and s uffici ent informati o n to eva lu ate wheth e r th e Red eve lo pm ent Projec t as pro posed is
financiall y fe as ibl e.
Gambling Es ta bli shm ent. Thi s TI F Pl an does not include th e initial deve lo pm e nt or
redeve lo pment of any gamblin g es tabli shm e nt as defin ed in th e TIF Act.
Re po rting Requireme nt s. The Co mmi ss ion s ha ll re po rt to th e Direc to r of the De partm ent
of Eco no mi c Deve lopm e nt fo r th e Stat e o f Mi sso ur i by th e las t day of Febru ary o f eac h yea r th e
name. address . ph o ne number and prim a ry line of bu s in ess o f any bu sine ss th at re loca tes to th e
Redeve lo pm ent Area. Pursua nt to th e Ac t. th e Director fo r th e Departm ent of Eco nomi c
Deve lo pm ent is required to co mpil e and re port th e sa me to th e gove rn or. th e speaker of the
house and th e pr es id ent pro temp ore of th e Se nat e on th e la st da y of April o f eac h yea r.
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Red eve lo pment Projec t Are a. The Rede ve lopment Proj ect Area se le cted for th e
Red eve lop ment Pr ojec t include s onl y th ose parce ls of real propert y and improvement s direct ly
and sub sta nti a ll y ben efited by th e proposed Rede velo pment Project. Co nstructi on activity may
tak e place and improve ment s ma y be constructed on land adjacent to. but not included within.
th e Rede ve lopment Area which benefit s the Red eve lo pment Area. but s uch costs associated
th erewith will not be Reimbursa ble Project Costs.
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EX HIBIT A
DEPI CTION AN D L EGA L D ESC RIPTION OF RED EVELOPM ENT A R EA
AN D R ED EVELOPMENT PROJ ECT A REA
A· I
EXHIBIT A
Pat1 of th e Sou th Half of Sect ion 4, and part of the No rth east Quarter of the Northwest
Quarter and part of th e West Half of the Northwest Quarter o f th e Nort heast Quarter of Section 9.
a ll in Townsh ip 44 North . Range 12 W. in the Cit y of Jefferson. Co le Co unt y. Mis so uri. more
partic ularl y described as follows :
BEGINNING at the northeast corner of the We st Half of the Nort hwes t Quarter of the
Nort hea st Quarter of said Section 9: thence S4 °26'19 .. E, 760.31 feet to the nottherly lin e of Old
U.S. Route No. 50 (now Cou ntry Club Drive): th ence S4 °44'3TE. cross in g said Coun try Cl ub
Drive right-of-way. I 01 .2 0 feet to a point on the sou th erly line thereof and said comer being the
northwest comer of a tra ct of land described by deed of record in Book 136. page 132. and on the
easterly boundary of a tract described by deed of record in Book 239. page 903, Co le County
Recorder's Office; th ence S4°34'31 "E , a lon g th e ea ster ly boundary of sai d tract de sc ribed in Book
239 , page 903 , 375.37 feet to th e sou th easterly co mer thereof. sa id comer being on th e northerly
lin e of U.S. Route No. 50: th ence S75 °33'03"W. along the northerly line of sa id U.S. Route No. 50.
77 .73 feet ; thenc e N88 °24'20"W , alo ng the north er ly lin e of said U.S. Route No. 50. 125.05 feet to
the so uth easte rl y corner of a tract of land described by deed of record in Book 362, page 5 19. Co le
Co unt y Recorder's Office: th e nc e N7 °57'56"W, a long the easterly boundary of sa id tra ct de sc ribed
in Book 362. page 519. 346.95 feet to th e northeasterly corner thereof. sa id co rn er being on th e
so uth erly lin e of th e aforesaid Coun try Cl ub Drive; thence S77 °59'08 .. W. a long the sou therl y lin e
of said Co untry Club Drive , 334 .2 1 feet to the nort hwester ly corne r of a tract of land described by
deed of record in Book 3 15 . page 773 . Co le County Recorder's Office; thence SI4°07'00"E. along
the westerly boundary of said tract described in Book 3 15, page 773. 273.73 feet to the
sout hwester ly corner thereof. said corner being on the northerly lin e of the aforesaid U.S. Route No.
50: thence N88 °24'20"W , along the northerly lin e of said U.S. Route No. 50. 765.43 feet ; thence
S75 °24'00"W. along the nort herl y lin e of sa id U.S. Route No . 50. 36.12 feet to the sou th eas ter ly
comer of a tract of land described by deed of record in Book 298. page 83. Cole Co unt y Recorder's
Office ; thence N3 °07'58"W. along the easterly boundary of said tra ct described in Book 298. page
83. 96 .22 feet to th e northea sterly corner thereof. said corner being on the southerly line of the
aforesaid Co untry Club Drive; thence continuing N3 °07'58"W. I 02.09 feet to th e northerly lin e of
said Cou nt ry Club Drive: th ence S78 °00'23"W , alo ng th e northerly lin e of said Co unt ry Club
Drive. 104.04 feet to th e mo st easter ly comer of th e U.S. Highway 50 connection right-of-way
de sc ribed by deed of record in Book 240. page 660. Co le Co unt y Recorder"s Office: th ence, along
the nort herl y line of said connection right-of-way. the following courses: N85 °29'44"W. 264.86
feet; thence N49 °07'58"W , 230.71 feet: th ence N47 °05'00"W. 313.86 feet to th e easterly lin e of
West Truman Boulevard (former ly known as Nort h Ten Mile Drive ): th ence N8 °34'28"E. along the
easterly line of said West Truman Boulevard , 490.41 feet: thence N6 °37'2 1 "E. along the ea sterl y
lin e of said We st Truma n Boulevard , 401.12 feet to the northerly end of the aforesaid con nection
right-of-way ; th ence N79 °05' 18 .. W. 36.28 feet to the cent erl in e of West Truman Boulevard (as
described in Parcel I ofthe deed of record in Book 626 . page 565 Co le Co unty Recorder's Office);
thence , leavi ng th e aforesaid connection right-of-way lin e, described in Book 240. page 660,
N3 °27'09''E. along the ce nterline of West Truman Boulevard (as per sa id Parcel I description),
11 3.55 feet : then ce N23 °44'10''E. along the cen terlin e of West Truman Bou levard (as per said
Parcel I description), 233 .0 3 feet to th e so uth erly end of the property deeded to the City of Jefferson
for th e street right-of-way . now known as West Truman (formerly known as Not1h Ten Mile Drive)
as per deed of record in Book 275. page 2 14 . Co le County Recorder's Office; th ence N85 °03'03"E.
along the so utherl y lin e of said property described in Book 275, page 2 14. and along the sou th er ly
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EXHIBIT A
boundary of the propert y de sc ribed by dee d of re co rd in Book 555 . page 698. along the so utherl y
bo unda ry of El Mercad o De ve lopment. ection I . as per plat of record in Pl at Book II. page 402
and along the so uth erl y bo undary of th ose prope rtie s de sc ribed by deed s o f re co rd in Boo k 529 .
pa ge 947 and in Book 462. pa ge 649. Co le Co unt y Rec order"s Office. 1461.95 feet: thence
N86 ° ll 'll"E. alo ng the so uth erl y boundary of sa id pro pert y desc ribed in Boo k 462. pa ge 649 and
along th e so utherl y boundary of th e prop ert y de sc ribed by deed of record in Book 546. page 150 ,
Co le Co unty Record er· s Office, 692.99 fee t to th e so uthea sterly corner o f sa id property de sc ribed in
Bo ok 546 , page 150 and said corner bein g on the westerl y bo undary of Monticell o Acre s, Section
Nine. as per plat of record in Plat Boo k II , page 859. Co le Co unt y Reco rd er 's Office; then ce
S3 °59'18"E. along th e westerly bo undary of Monti ce ll o Acres, Section Nine , 700.95 fee t to th e
so uthwe sterly corner th ereof. being a po int on the so uth line of sa id Section 4, Town ship 44 North.
Range 12 We st. at the so uthea sterl y comer of the property de scribed by de ed of rec ord in Boo k 629.
page 196. Co le Co unt y Reco rder"s Office: th e nce S86°32'02"W. along the Section Line. 389.43 feet
to the POINT OF BEG INN IN G.
A-3
42411005 12
EXHIBIT B
PROJECT DESCRIPTION
PROPO SE D CAPITAL MALL RE NOVATION S
J. Exterior
A. Parking Lot -Repavin g. ren ova tin g. res urfac in g. install in g adequate li ghtin g and
repairin g ex istin g li ghtin g.
B. Structure/fa ca de -Repair and re place roof. repair a nd replace RM U"s. repair and
repla ce waterproofing ex te ri o r construct ion j o int s, in stall and improve exteri o r
fa~ad e with cu ltured sto ne and ma so nr y. install co mp os ite met a l panel s and
refonn parape t. in stall new glazing fo r entry and windows. in stall fa bri c aw nin gs
and dec ora ti ve li ght fixture s with wa ll was h. install internally illumin ated fro sted
glass tower at entry. in stall so lar panelin g, in stall pylo n s ig ns and additi o na l
exterior signa ge. in stall so lar panel s. a nd repair. rep lace and in stall common area
HV AC units.
II. Interior
42411005 12
A. Facade -Upgrad e and in stall new li ghtin g. in stall new furniture fi xture and
equipment. rep lace o utdated interi or signage and fa~ade structures , replac e
interi o r fl oo rin g. moderni ze sho ppin g and co mm on areas . in sta ll landscap in g and
paint interi or.
B-1
EXHIBIT C
SPE CIFIC OBJECTIVES OF REDEVELOPMENT PLAN
I . To re du ce o r remedi ate th e bl ig htin g co nditi o ns preva lent in th e Redeve lo pm en t Area :
2. To cause th e Redeve lo pm ent Area to be redeve loped th ro ugh th e re novat io n o f th e
Ca pit a l Ma ll. toge th e r with all a meniti es, land sc apin g. a nd in fras tru cture.
3. To ex pand the tax ba se o f th e C it y by e nco urag in g pri va te in ves tm ent tn th e
Redeve lopm ent Area.
4. To in c rease th e re tail shoppin g and e mpl oy ment opp o nuniti es for th e Cit y"s res id ent s.
fac ilitate eco nomi c se lf-s uffi c ie ncy within Je ffe rso n Cit y. a nd se rve as a ca ta lys t fo r
funh er hi gh qu alit y deve lopm ent or redevelopm ent in th e Cit y.
C-1
42411 00512
EXHIBIT D
BLIGHT STUDY
CAPITAL MALL
3600 COUNTRY CLUB DRIVE
JEFFERSON CITY, COLE COUNTY, MISSOURI
See Attached.
D-1
4241 1005 12
Va lbridge Property Advisors 1
Shaner Appraisals, Inc.
10990 Quivira Road
Suite 100
Over1and Park. Kansas, 6621 0
913.451 .1451
913.529.4121 fax
va/bridge.oom
Val bridge
PROPERTY ADVISORS
Sha.wr Appraisals. Inc.
July 30, 2013
Mr. Rob Kingsbury
Farmer Holding Company
221 Boliver Street, Suite 400
Jefferson City, Missouri, 65101
Re: Blight analysis of the Capital Mall located at the 3600 Country Club Drive in Jefferson City, Cole
County, Missouri 65109 .
Shaner File Number: 12638
Dear Mr. Kingsbury:
I am pleased to transmit the attached Blight Study Report that has been prepared for the above
referenced property. The purpose of this report is to determine whether the Study Area is blighted, as
defined in Section 353.020, Section 67.140, and Section 99.805 Revised Statutes of Missouri. This analysis
represents an accumulation of my findings based on research and investigations performed as of the
report's effective date, December 9, 2012 . The attached report sets forth the data, research , investigations,
analyses, and conclusions for this report.
The Study Area is comprised of 14 parcels with a total site area of 78.27 acres of land. The Study Area is
presently a combination of both unimproved land and improved structures that are being utilized for
retail purposes such as banking, food service, and other general retail uses.
As determined in the following study, it is my opinion that the Study Area represents a ·blighted area · as
is defined in Section 353 .020 of the Missouri Redevelopment Corporations Law and in Section 99.805 of
the Real Property Tax Increment Allocat ion Redevelopment Act of the Revised Statutes of Missouri .
Primary blighting factors include:
• Age and obsolescence
• Inadequate or outmoded design
• Physical deterioration/deterioration of site improvements
• Defective or inadequate street layout
• Unsanitary or unsafe conditions
• Improper subdivision and/or obsolete platting
• Conditions endangering life or property by fire and other causes
As a result of the age, obsolescence, inadequate and outmoded design and physical deterioration the
Study Area has become and economic and social liability and those conditions are conducive to the
inabi lity to pay reasonable taxes. Therefore, it is my opinion that the Study Area is a blighted area as
defined in Section 353.020 of the Revised Statutes of Missouri. Further, it is my opinion that the Study
Area is a blighted area as defined in Section 99.805 of the Revised Statutes of Missouri because the Study
Area suffers from the predominance of defective and inadequate street layout, unsanitary and unsafe
conditions. improper subdivision and obsolete platting, deterioration of site improvements, and
42415698.4
Mr. Ro b Kings bur)'
July 30, 2013
Page 2
conditions endangering life and property by fire and other causes and as a result of such factors the
Study Area constitutes an economic and social liability and a menace to the public health and safety in its
present condition and use. I have reached these conclusions based on the facts shown in the following
report. This letter is invalid as an opinion of blight if detached from the report. which contains the text,
exhibits and Addenda.
Sincerely,
Shaner Appraisals, Inc.
Jason Roos, MAl
Director
State Certified General Appraiser, Missouri No . 2009011367
42415698 .4
Capital Mall Blight Study
Certification
I certify that, to the best of my knowledge and belief.·
• The statements of fact contained in this report are true and correct
• The reported analyses, opinions, and conclusions are limited only by the reported assumptions and
limiting conditions, and are my personal, impartial and unbiased professional analyses, opinions and
conclusions.
• I have no present or prospective interest in the property that is the subject of this report, and no
personal interest with respect to the parties involved.
• I have no bias with respect to the property that is the subject of this report or to the parties involved
with this assignment.
• My engagement in this assignment was not contingent upon developing or reporting predetermined
results. Furthermore, my engagement was not conditioned upon the report producing a specific
opinion of blight or the approval of any public incentives or the approval of a loan.
• My compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined opinion of blight that favors the cause of the client, the attainment of a
stipulated result, or the occurrence of a subsequent event directly related to the intended use of this
report.
• The reported analyses, opinions, and conclusions were developed, and this report has been prepared ,
in conformity with the requirements of the Code of Professional Ethics and Standards of Professional
Practice of the Appraisal Institute, which include the Uniform Standards of Professional Appraisal
Practice.
• The use of this report is subject to the requirements of the Appraisal Institute relating to review by its
duly authorized representatives.
• Laird Goldsborough, MAl. MRE provided assistance to the person(s) signing this certification.
• Jason Roos. MAl made a personal inspection of the property that is the subject of this report.
• As of the date of this report, Jason Roos , MAl has completed the continuing education program of
the Appraisal Institute.
• I have performed no services, as an appraiser or in any other capacity, regarding the property that is
the subject of this report within the three -year period immediately preceding acceptance of this
assignment.
Jason Roos. MAl
State Certified General Appraiser, Missouri No . 2009011367
SHANER APPRAISALS, INC.
42415698.4
Certification
Capital Mall Blight Study
ExTuoltDINARY AssuMP110HS AND HYPOTHETICAL CoHomoNs
Extraordinary Assumption: An assumption, directly related to a specific assignment. which, if found to
be false, could alter the appraiser's opinions or conclusions. Extraordinary assumptions presume as fact
otherwise uncertain information about physical , legal , or economic characteristics of the subject property;
or about conditions external to the property such as market conditions or trends; or about the integrity of
data used in an analysis.
There are no extraordinary assumptions employed in this report.
Hypothetlul Condition: That which is contrary to what exists but is supposed for the purpose of
analysis. Hypothetical conditions assume conditions contrary to known facts about physical, legal , or
economic characteristics of the subject property; or about conditions external to the property, such as
market conditions or trends; or about the integrity of data used in an analysis.
There are no hypothetical condi tions employed in this report.
1. None
SHANER APPRAISALS, INC .
424 15698.4
OTHER CONDillONS
Extraordinary Assumptions and Hypothetical Conditions
4
5
6
7
8
9
10
11
12
13
14
Capital Mall Blight Study
I NT RODUCTION
Identification of the Property
O.Kription
The subject consists of 14 parcels located generally near 3600 Country Club Drive, Jefferson City, Cole
County, Missouri, although each parcel has a separate address. The subject contains four parcels of
vacant land and seven parcels that have been improved with retail buildings. The following table
summarizes the 14 parcels .
...... .,
1002090002001001 1,225,343
3546 Country Club Drive 1002040004000025 355 ,450 8.16 Vacant land
3550 Country Club Drive 1002040004000025003 219,542 5.04 26,390 Improved with Movie Theater
3524 Country Club Drive 1002090001001024 65,776 1.51 Vacant land
3530 Country Club Drive 1002090002001004 31,799 0 .73 2,415 Improved with Restaurant
3516 Country Club Drive 1002090001001022 105,851 2.43 Vacant land
3536 County Club Drive 1002090002001002 29,621 0.68 Ground lease with Restaurant
3721 West Truman Blvd. 1002040003002036 353 ,272 8.11 Ground lease with Grocery
3601 Country Club Drive 1002090002001006 55,321 1.27 3,820 Improved with Restaurant
3533 Country Club Drive 1002090002001005 84,071 1.93 4,285 Improved with Bank
3515 Country Club Drive 1002090001002011 74,923 1.72 Vacant land
3600 Country Club Drive 1002040003002037 328 ,743 7.55 61,940 JC Penney's
3600 Country Club Drive 1002040004000025001 182,594 4 .19 Improved with Parking
3600 Country Club Drive 1002090001001023 8 Dillard
Tot011l
Identification of the Problem
Purpose
The purpose of this blight study is to investigate and determine if blight conditions exist in the proposed
Study Area according to Missouri's Urban Redevelopment Corporations Law and Real Property Tax
Increment Allocation Redevelopment Act as defined below.
Definitions
Missouri Urban Redevelopment Corporations Law, Section 353 .020 (2), RSMo. -"Blighted area", that
portion of the city within which the legislative authority of such city determines that by reason of age,
obsolescence, inadequate or outmoded design o r physical deterioration have become economic and
social liabilities, and that such conditions are conducive to ill health, transmission of disease, crime or
inability to pay reasonable taxes.
Missouri Real Property Tax Increment Allocation Redevelopment Act, Section 99.805(1), RSMo.-"an area
which, by reason of the predominance of defective or inadequate street layout, unsanitary or unsafe
conditions, deterioration of si te improvements, improper subdivision or obsolete platting, or the existence
of conditions which endanger life or property by fire and other causes, or any combi nation of such
factors, retards the provision of housing accommodations or constitutes an economic or social liability or
a menace to the public health, safety, morals, or welfare in its present condition and use."
SHANER APPRAISALS, INC.
42415698.4
Introduction • 1
Capital Mall Blight Study
Effective Date
The effective date of this blight study is December 9, 2012. The property was inspected by Jason Roos,
MAl on December 9, 2012.
Date of Report
The date of this report is January 31, 2013. A comparison of the date of the report to the effective date of
the blight study indicates that our conclusions are reflective of current market conditions.
Use or Function
This blight study was prepared for the sole and exclusive use of Farmer Holding Company to assist in
determining if the Study Area is blighted and eligible for tax abatement and/or TIF and OD. It is not to be
relied upon by any third parties for any purposes, whatsoever; provided, however, this Report may be
submitted by Farmer Holding Company or its affiliates or agents to any governmental entity or agency for
the purpose of making a recommendation of a finding that the Study Area is blighted or a legislative
determination and/or finding that the Study Area is blighted.
Appraiser Competency
No steps were necessary to meet the competency provisions established under USPAP. Our firm has
completed many blight studies in the past several years , and we have adequate experience and
qualifications to complete the study. Please refer to the Appraiser Qualifications at the end of our report.
Sources of Information
Market data was obtained from a number of sources, including but not limited to the following:
• The Site-To -Do-Business
• The Cole County Assessor's Office
• Jefferson City online databases
• Cole County online databases
• Jefferson City Chamber of Commerce
• Jefferson City Economic Development department
• The Labor of Bureau Statistics
• The U.S. Census Bureau
• Loopnet, CoStar, Multiple Usting Service (MLS), and in-house database
SHANER APPRAISALS, INC.
4241 5698 .4
Introduction • 2
Capital Mall Blight Study
AREA AND NEIGHBORHOOD
Area Overview
The subject is located in the western portion of Jefferson City, Cole County. Missouri. Jefferson City is the
state capital of Missouri and is located approximately midway between Kansas City and St louis. Major
highway access in the community is provided by US Highway 50, which runs east/west through the
community and US Highway 63 which runs north/south. Accordi ng to the Site to Do Business, Jefferson
City had an estimated 2012 population of 43,506 people with a median household income of S46,525.
This represents a population increase in Jefferson City of 0.44% annually from 2010 to 2012. In
comparison, the Kansas City metro has a median housing income of $51,835 in 2012 and a reported
population growth of 0.60% annually since 2010. The following analysis focuses on the social, economic,
government, and environmental forces that form the elements of supply and demand and subsequently
affect local real estate values.
According to Market Analysis for Real Estate, published by the Appraisal Institute. the trade/mar1cet area is
delineated by physical, political, and socioeconomic boundaries or by the time-distance relationship
represented by travel times to and from common destinations. A mar1cet area is an area in which
alternative, similar properties effectively compete with the subject in the minds of probable, potential
SHANER APPRAISALS, INC. Area and Neighborhood • 3
Capital Mall Blight Study
users . It is further stated that the time-distance relationship to employment and support facilities is the
primary determination for retail properties. Therefore, for the purposes of this report, the market area
boundaries are considered to be the entire city of Jefferson City. The market area is shown on the
following map.
Market Area
t. ' • ,
' •,
~
\
~
i ~ ..
I
I • •
\ ______.M ~
·-.. • ~" .. ...
\
\
I
Land Use
Land use in the immediate area of the subject includes mostly commercial and single family residential.
The main commercial corridor in the subject's neighborhood is West Truman Blvd . and US Highway SO,
which intersect at the southwest comer of the subject property. Significant land use characteristics are
summarized in the following table for the immediate area .
Predominant Age of Improvements 30 years
Predominant Quality and Condition Averaqe
Approximate Percent Developed (estimate) >75% with vacant sites being located
throughout the area
Life Cycle Staqe Second, a period of stability
Infrastructure/Planning Average
Prevailing Direction of Growth West
Immediate Surroundinq Land Use
North Commercial
South Hiqhway -
East Residential ---
West Commercial
SHANER APPRAISALS, INC. Area and Neighborhood • 4
capital Mall Blight Study
Access
Regional access to and from the local market area is good due to the presence of US Highways 63 and SO.
US Highway SO runs east/west through the area and connects with Interstate 470 and Kansas City to the
west and Interstate 44 and St. louis to the east . US Highway 63 runs north/south through the area and
connects with Interstate 70 and Columbia, Missouri to the north and Interstate 44 and Rolla, Missouri to
the south .
Outlook and Conclusions
I am cautiously optimistic about both the short and long-term outlooks of the subject market area .
Jefferson City is the state capital of Missouri and as such , will continue to have a solid employment base
of government jobs. Although that is the case, there is still a risk factor involved that includes the
potential cut in government spending, which would have a negative impact. The location along two US
Highways is also a positive for the community and the market will remain stable for the foreseeable future
with few changes occurring .
SHANER APPRAISALS , INC . Area and Neighborhood • 5
Capital Mall Blight Study
PROPERTY DATA
Site Description
Physical Futures
SID (11 hrals c..blned) Approximately 78.27 acres, or 3.409.423 square feet
Scua: County Records
mlon Irregular (see following maps, aerials and site plans)
~ Basically level
Adequate at the time of inspection
Flood .......
c:omm...lty ....... , 29051C0109E, effective November 2, 2012
Zone X, ·Areas of 0.2% annual chance flood ; areas of 1% annual
Flood Zone chance flood with average depths of less than 1 foot or with drainage
areas less than 1 square mile; and areas protected by levees from
1%annual chance flood :
Flood .......... Nottypically required within Zone X
Utlltles Adequate utilities are available and in_Qiace at the site.
Our physi ca l inspection of the subject property d id not reveal any
EnvlroniMnUI indication of environmental hazard. However, we were not provided
with a Phase I report to verify. It is recommended that a competent
third party prepare a Phase I to confirm.
We were not provided a soil report to review . We assume that the
Ground SUblllty soil's load bearing ca pacity is sufficient to support the existing
structures. We did not observe any evidence to the contrary during
our physical inspection of the property.
SHANER APPRAISALS , INC. Property Data • 6
Capital Mall Blight Study
StwiER APPRAISALS, INC. Property Data • 7
I
r
SHANER A PPRAISALS, INC .
b l
Jefferson CJtv
• C·S
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• c-o .,...1 .,...2 .,...3
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Capital Mall Blight Study
Property Data • 8
capital Mall Blight Study
Flood Map
PROPER I Y ADDRESS:
3600 Cow*y CU» Dr, Jder80n ~. MO, 65109
North
SHANER APPRAisALs, INC . Property Data • 9
Capital Mall Blight Study
Site Conclusions
The subject site is functional for its legally permissible use of a retail development The site is favorable for
its current retail use and has good general access to main transportation routes in Jefferson City and
utilities. The use of the property is consistent with the surrounding development.
SUIJECT PHoTOS
View of exterior of Capital Mall
SHANER APPRAISALS, INC . Subject Photos • 10
Capital Mall Blight Study
View of exterior of Capital Mall
View of exterior of Capital Mall
SHANER APPRAISALS, INC. Subject Photos • 11
Capital Mall Blight Study
View of exterior of Capital Mall
View of exterior of Capital Mall
SHANER APPRAISALS , INc . Subject Photos • 12
Capital Mall Blight Study
View of exterior of Capital Mall
Subject Photos • 13
Capital Mall Blight Study
View of interior of Capital Mall
SHANER APPRAISALS, INC. Subject Photos • 14
Capital Mall Blight Study
View of interior of Capital Mall
SHANER APPRAISALS, INC. Subject Photos • 15
Capital Mall Blight Study
View of i nterior of Capital Mall
SHANER APPRAISALS, INC. Subject Photos • 16
Capital Mall Blight Study
View of interior of Capital Mall
SHANER APPRAISALS, INC. Subject Photos • 17
capital Mall Blight Study
View of interior of Capi tal Mall
SHANER APPRAISALS , INC . Subject Photos • 18
Capital Mall Blight Study
View of Wendy's outparcel
SHANER APPRAISALS , INC . Subject Photos • 19
Capital Mall Blight Study
V.ew of Hardee's outparcel
SHANER APPRAISALS, INC. Subject Photos • 20
Capital Mall Blight Study
I
View of vacant land
SHANER APPRAISALS, INC. Subject Photos • 21
Capital Mall Blight Study
View of vacant land
SHANER APPRAISALS, INC. Subject Photos • 22
Capital Mall Blight Study
View of vacant land
SHANER APPRAISALS, INC. Subject Photos • 23
capital Mall Blight Study
BLIGHT ANALYSIS
Blight Defined
As presented earlier, Section 353 .020 (2) R.S.Mo of Missouri 's Urban Redevelopment Corporations law
defines a "blighted area · as follows:
• "Blighted area ", that portion of the city within which the legislative authority of such city
determines that by reason of age , obsolescence, inadequate or outmoded design or physical
deterioration have become economic and social liabilities, and that such conditions are conducive
to ill health, transmiss ion of disease, crime or inability to pay reasonable taxes .
We also presented the definition of blight from the Missouri Real Property Tax Increment Allocation
Redevelopment Act, Section 99.805(1), RSMo which defines a "blighted area· as follows :
• an area which, by reason of the predominance of defective or inadequate street layout, unsanitary
or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete
platting, or the existence of cond itions which endanger life or property by fire and other causes,
or any combination of such factors, retards the provision of housing accommodations or
constitutes an economic or social liabil ity or a menace to the public health, safety, morals, or
welfare in its present condition and use.
The above definitions serve as the basis for further discussion concerning whether the proposed Study
Area is blighted.
Chapter 353--Factors Ill and 2 -Age and Obsolescence
The Study Area includes both improved and unimproved sites. For the unimproved sites, since land does
not depreciate or age over time similar to improved property, and age is not cons idered to be a
sign ificant indication of bl ight for these parcels. There are nine structures on the 14 parcels. Each of
these structures was built in a different year and is subject to different amounts of depreciation. The
Capital Mall parcel (Parcel 1) contains the majority of the building area in the Study Area at approximately
63% and was built in 1978. In our inspection of th is building, there were a number of areas that had
dated improvements. These include the floor tile throughout the common areas and the tile in the
restrooms. There are several places in the mall that have tiles that are mismatched in color, possibly due
to the lack of similar tile to repair areas of the floor. Photos of these items can be seen on the following
pages.
The Merriam-Webster Dictionary defines "obsolescence· as "the process of becoming obsolete or the
condition of being nearly obsolete " and "obsolete" as "of a kind or style no longer current: old -
fashioned ." In a reta il shopping center sim ilar to the subject, keeping the common areas updated appeals
to both the shoppers and the tenants. Shoppers generally have more desire to be at a center that
appears "newer" and that has more up-to-date amenities. By making the subject mall more aesthetically
pleasing to these shoppers, traffic to the mall should increase and may increase the occupancy with
tenants that would appeal to these shoppers. Tired and outdated malls have difficulty attracting tenants
that will draw shoppers to the mall.
SHANER APPRAISALS, INC. Blight Analysis • 24
Capital Mall Blight Study
An article was reviewed that addresses this matter specifically. It was written by John Simpson, MAl who
has authored all or parts of four Appraisal Institute books and 11 Appraisal Journal articles, and he has
over 20 years of commercial appraisal experience. In his online appraisal blog ·Appraisal Matters·. he
wrote about older regional malls. In it, he stated that these properties "face a quandary: He goes on to
note "they need to be renovated to keep competitive with newer regional malls, yet this is a very
expensive proposition that rarely is financially feasible: Additionally, the article states "Older regional
malls that have not been modernized to current levels have great difficulties attracting the high credit
anchors they want: Mr. Simpson states "typically renovations that have occurred over the prior five to
ten years are cosmetic and do little to increase foot traffic:
Mr. Simpson finishes his article with the following conclusion:
So older regional malls have lower sales per square foot and higher common area
maintenance costs. Frequently traffic volume and traffic patterns reduce the radius it can
draw from. So even if the mall is renovated , it is extremely difficult to recoup the cost,
hence what we see are partial renovations that focus on cosmetics. The problem is that
prospective retail tenants recognize the dynamics and even with a face lift, they are very
hesitant to commit. Their response is "show me higher average sales volumes", which is a
Catch 22 with only cosmetic renovations. Even if sales volumes increase, the higher costs
associated with the mall result in a lower negotiated rent So again, mall owners are
faced with a difficulty in justifying the costs of a full renovation. That's why they need
one or more new anchors, yet the particular location matrix of an anchor will generally
preclude a regional mall perceived as a "local s" mall.
Based on our inspection of the subject property along with the data that has been obtained from the
article noted above, it appears that the age of the subject property contributes to the indication of blight
for the Study Area .
SHANER APPRAISALS, INC . Blight Analysis • 25
Capital Mall Blight Study
SHANER APPRAISALS , INC . Blight Analys is • 26
Capital Mall Blight Study
SHANER APPRAisALs , INC. Blight Analysis • 27
capital Mall Blight Study
Chapter 353 Factor • 3 -Inadequate or Outmoded Design
The majority of the Study Area is improved with a regional shopping center. In general, current views are
that the designs of regional shoppi ng centers are considered both inadequate and outmoded. The layout
of an older mall property like the subject is considered a problem to some investors as the buildings have
long wings that connect to the various anchors. This is a concern because each wing in a shopping center
typically requires an HVAC system which can help to eliminate economies of scale, increase repair and
replacement costs, and reduce the energy efficiency of the facility. A layout of the subject's facility that
shows the various wings at the subject shopping center can be seen later in this section. As shown by the
pictures on page 31, the entrance wings have little to no physical or visual activity rendering the design to
be out-of-style and inadequate by today's standards. The main entrance to the subject site from Truman
Boulevard enters with a view of the service and loading area of the Sears tenant and not to one of the
main entrances to the shopping center, which can be found primarily on the south side of the subject
building near the food court. By today's standards service areas are shielded from public view. The two
entrances nearest to Truman Boulevard are, for the most part, void of any significant leasable space
rendering the design to be inadequate and outmoded.
CoStar published a three part series in October 2012 titled "The De-Mailing of America: What's Next for
Hundreds of Outmoded Malls?" In this article, it notes that RIDs like Simon Property Group and General
Growth Properties (the prior owner of the subject property), which are the nation's largest mall operators,
are divesting lesser-performing properties. Investors have been purchasing these properties at these low
prices and believe that they can reposition these malls or raze them to gain land for apartments or other
uses.
The article goes on to note that that the issues that face distressed malls and large shopping centers
ranges from changing neighborhoods, increased competition from online retailers, the appeal of newer
lifestyle and power centers, consolidation of anchor stores, and sharp downsizing by in-line tenants. In a
report from Green Street Advisors, it was forecast that 10% of the nation's 1,000 enclosed malls will fail by
2022 and will eventually be converted to uses other than retail .
Chapter 353 Factor • 4 -Physical Deterioration
We have been provided a report completed by Jamie Reed , General Manager for the subject property.
This report shows that there are a number of items of physical deterioration and potential safety issues
within the subject property. The description of these items from this report are included below with the
full report being included in the addendum of this report.
Blight Analysis • 28
Capital Mall Blight Study
I . F.cades--Tbe ~ of the mall property is in poor condition in aew.ral plaocs.. See
enclosed pidwe I for an example oftypK:al fw;:ade conditions.
2. Roof-Tbc roof is in poor condition in several places. 'J'hae are a subsUntial number o f
active roof leab and sips of a hiltory of roof leaks in 14 of 30 of Chc teunt aas
observed. In additiaa, substantial repairs will be needed to the roof~ Sec mcloscd
pictures 2 to I 1 for evideoce of the roof condition and leab ~und.
3. HVAC-Thc HVAC system is in poor condition. It has bcc:n recoauncnded tbll 11
HV AC units be lq)lac.ed in the short tam due to their substantial dcfaiontioft. qc and
obdc::a:cocc.
4. Steel Service Doon---()oe..half of the steel service doors are Nlkd and ddaionlcd
aloog lbc door jambs.. See enclosed picture 12 for an illustration of lbc typical rusted steel
door.
S. Plimcd F~ tawJt e®ies are in need of immc:diacc painting.
6. EJFS--Oamage was observed to the underlying EIFS (~) at ~ of the tenant
eoeries, most notably .. vacant spaces at the IOUtbcrn cod of the buikfins. See cndoled
piduR:s 13 to 16. See also picture 17 for typical dried and a'lldted ooatrol joint tcalant
found on the lhrouabout the ~
7. Suspcd Mold-Vasual signs of suspect mold have been idcatific:d two ICUDliR:M. See
adosed picture 8 md I I . This is a safety and health issue, in lddition to a deterioration
issue.
8. Paw:menl-A. you already noted the parking lot payment is highly deterioraled and in
need of rqUcanent. See endoscd pic:tura 18, 19 and 20 for rcccndy taken of the
.,.tin& pavanent conditions.
9. Cwbs-Tbe curbs are deteriorating in sewn) placa throughout the property. See
enclosed picture 21 of a damaged curb on the property that was typically oMcrved .
10. Trip Haz:.d-At west side: of JC Penney a trip hazard was identified. See c:nc:loscd
pidlae22.
I I . Service Enary Lights-There arc sevc:raJ ~ at lights over ICI'Vicc enuy doors. See
cocloscd picture 23 for typi<:aJ missing lights over savice artry doors. This is a safety
issue • much as a dctcriont.ioo issue .
12. W"mdows-Replacanc::nt needed at small ..char teoant at sooth end of building. Sec
codoscd picture 24.
In additi on to these items, the reader is referred to the discussion of physical deterioration on page 33
under ·oeterioration of Site Improvements.·
Chapter 99 Factor • 1 -Defective and Inadequate Street Layout
Conditions associated wi1h defective or inadequate street layout include poor vehicular access and/or
internal circulation; substandard driveway definition and parking layout (e.g . lack of curb cuts, awkward
entrance and exit poi nts}; offset or irregular intersections; and substandard or nonexistent pedestrian
circulation and lack of signage. The lack of signage can create uncertainty and a potential for accidents
for drivers who are unfamiliar with the area .
SHANER APPRAisALs, INC. Blight Analysis • 29
Capital Mall Blight Study
One of the conditions that was common throughout the Study Area. was that of non-existent pedestrian
circulation. The only sidewalks found within the Study Area. were located around the perimeter of the
bu ildings. and no sidewalks linked the redevelopment area with adjoining a.rea.s. None of the streets in
the Study Area. have sidewalks. Additionally, there are no sidewalks along West Truman Road or along
Country Club Drive. The lade of sidewalks creates a. dangerous environment for pedestrians within the
Study Area. Creating pedestrian linkages with major activity hubs such a.s the Capital Mall is often a
planning priority of most communities.
Chapter 99 Factor I 2 -UnsaniUry or Unsafe Conditions
There are widespread locations within the Study Area exh ibiting unsafe or unsanitary conditions. The
most prevalent Study Area. conditions considered unsafe or insanitary include numerous potholes
throughout the parking areas, poor drainage throughout the parking areas, the existence of cracked or
uneven sidewalks, poor drainage, life safety issues and outdated building systems. The numerous
potholes throughout the area lead to unsafe conditions to vehicular traffic and especially to pedestrian
access to and from the parking areas.
Chapter 99 Factor I 3 -Improper Subdivision or Obsolete Platting
There are specific conditions that can be used to determine the existence of improper subdivision or
obsolete platting. Among these conditions are irregular or faulty lot shape and/or layout. inadequate lot
size, poor access, as well as conformity of use. Field study and review of public records suggest these
conditions present throughout and are predominate within the Study Area .
lot layout is deemed to be faulty if the configuration relative to the street is contrary to what is desired
for development. lot shape is considered faulty if the shape is unusual to an extent that it deters or
constrains development options. The Study Area consists of 14 parcels that are irregularly configured ,
making it difficult to undertake a coordinated approach to redevelopment of the property so as to bring
it up to modem development standards. Each of the department stores together with its ancillary parking
has been separately platted, result ing in the plats having highly irregular shapes. Such platting results in
the creation of a number of legal and financial obstacles to development.
The GIS map on page 7 of this Report illustrates improper subd ivision or obsolete platting in the Study
Area. Of the 3,409,423 square feet contained in the Study Area, 100% of the property in the Study Area
reflects this condition.
The Study Area predominantly suffers from improper subdivision and obsolete platting. There are several
additional evidenti ary factors that support this. The first is that the main entrance to the subject site from
Truman Boulevard enters with a view of the service and loading area of the Sears tenant and not to one
of the mai n entrances to the shopping center, which can be found primarily on the south side of the
subject buildi ng near the food court. The two entrances nearest to Truman Boulevard are, for the most
part, void of any sign ificant leasable space. A photo of the two entrance wings is below. In addition,
although it is not owned by the same entity as the mall , Dillard's has poor visi bility and access from both
Country Club Drive and Truman Boulevard. This can be seen on the site plan that follows in this section .
SHANER APPRAISALS , INC. Blight Analysis • 30
Capital Mall Blight Study
A second factor that evidences improper subdivision of the overall Study Area is that the shopping center
and subject land is not built out 100%, even though the center was constructed nearly 35 years ago.
There is one pad site (Parcel 4) that is 1.51 acres and has frontage along Country Club Drive. This pad site
SHANER APPRAISALS, INc. Blight Analysis • 31
Capital Mall Blight Study
remains vacant. There are also three parcels (Parcels 2, 6 and 11) that are considered ·butters· from the
residential development that exists to the east. Although this buffer is required by zoning, it consists of
slightly over 20% of the total site area in the Study Area , which is considered to be excessive.
Within the Study Area, the platting is also considered to be inefficient and obsolete by today's standards
as JC Penney and Dillard's have been separately platted. The division of space has resulted in the plats
having very irregular shapes. These anchors (JC Penney and Dillard's) are owned by a different entity than
the remainder of the shopping center. This presents major problems relating to the development of a
plan for any redevelopment or adaptive reuse of the property as well as legal and financial hurdles to
development.
The shopping center and site plans that were referenced earlier in this section can be seen below and on
the following page. Page 7 of this report shows the layout of the various parcels and their irregular shape
and location on the site.
i 1 Ill
il .. oa I j~
:s~
..
'=
SHANER APPRAISALS, INC. Blight Analysis • 32
I '
I ,-
1 rr..,_b.-
'/z I
'{
t • •
Ca pital Mall Blight Study
.... -·--
All of these components indicate that the subject property suffers from an inadequate and outmoded
design as well as improper subdivision and obsolete platting, and these are cons idered to be an
indication of blight. The fa ct that one pad site remains vacant evidences the limited demand in the area
and results in an economic liability to the city. In addition, the parcels that are currently used as buffers
between the shopping center and the residential development to the east are useful for their current
purpose, but in this capacity do not generate significant taxes for the city.
Chapter 99 Factor I 4 -Deterioration of Site Improvements
At the Study Area, there are a number of items of physical deterioration that are present, however, it does
not appear that any of these items are significant. They include damaged parking areas and damaged
interior tiles. On the interior of the mall, the building itself is dated with several places in the buildi ng that
have floor tiles that are mismatched as well as some evidence of damaged floor t iles. There was nothing
specific that was identified as major deterioration, such as evidence of foundation damage, HVAC
obsolescence, roof leaks, or improper drainage around the mall's exterior, however as noted previously,
there was an overall dated appearance to the facility. One issue with the Study Area is the i nterior of the
shopping center and the damaged floor tile. It does not appear that there is any rema i ning match ing tile
for the majority of the build ing. As noted previously, areas of the common floor have been replaced with
lighter color tiles. Because of this, it is possible that the cost to update the flooring throughout the
building's common areas would be a detriment to developers from a cost -benefit standpoint.
SHANER APPRAisALs, INC . Blight A nalysis • 33
Capital Mall Blight Study
My inspection also found that the parking lot was nearing the end of its useful life and is in need of
resealing and restriping, and repair of potholes. Several curbs are deteriorating and need repairs
throughout the area as well.
The following pictures show a sample of the damaged tile as well as the damage in the parking area.
SHANER APPRAISALS, INC. Blight Analysis • 34
Capital Mall Blight Study
SHANER APPRAISALS, INC . Blight Analysis • 35
Capital Mall Blight Study
SHANER APPIWSALS, INC. Blight Analysis • 36
Capital Mall Blight Study
Therefore, given the reasons outlined above, physical deterioration is considered to be an indication of
blight.
Chapter 99 Factor II 5 -Conditions which Endanger Life or Property by Fired and Other Causes
According to the property condition report received from Jamie Reed , the fire sprinkler system has not
been tested since October 2009. These systems are supposed to be tested on an annual basis. Because
of the lack of fire system testing stated in the property condition report, there is an potential that the tire
system may not operate correctly in the event of a tire. This can be considered a condition that would
endanger life and property by tire.
81..16HT STUDY CoNcLUSIONS
The following factors of the blight definition are present in the proposed Study Area .
--JSJ Bllaht Factors Yes No
Aqe X
Obsolescence X
Inadequate or Outmoded Design X
Physical Deterioration X
The foregoing analysis demonstrates that four out of the four Chapter 353 blighting factors are present
throughout the Study Area. In accordance with Missouri's Urban Redevelopment Corporations Law
definition of Blight Section 353.020(2). RSMo., the Study Area is blighted if the governing body of the city
determines that by reason of age, obsolescence, inadequate or outmoded design or physical
deterioration the area have become economic and social liabilities, and that such conditions are
conducive to ill health, transmission of disease, crime or inability to pay reasonable taxes.
Because of the four present blighting factors above, the Study Area has become both an economic and
social liability and these conditions are conducive to the inability to pay reasonable taxes as defined in
Secti on 353.020(2), RSMo. See below for a full evaluation of economic liability, social liability and the
inability to pay reasonable taxes .
-... 99 Blight Factors Yes No
Defective or Inadequate Street La_yout X
Unsanitary or Unsafe Conditions X
Improper Subdivision or Obsolete Platting X
Deterioration of Site Improvements X
Conditions which Endanger life or Property by Fire and Other Causes X
The foregoing analysis demonstrates that five out of the five Chapter 99 blighting factors are present in
the Study Area and the combination of these conditions are predominant in the Study Area . Under the
Missouri Real Property Tax Increment Allocation Redevelopment Act, Section 99.805(1), RSMo. the Study
Area is a blighted area if by reason of the predominance of defective or inadequate street layout,
unsanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete
platting, or the existence of conditions which endanger life or property by tire and other causes, or any
combination of such factors, retards the provision of housing accommodations or constitutes an
SHANER APPRAISALS, INC. Blight Study Conclusions • 37
Capital Mall Blight Study
economic or social liability or a menace to the public health, safety, morals, or welfare in its present
condition and use.
By reason of the predominance of the five present blighting factors above, the Study Area, in its present
condition and use, constitutes both an economic as defined in Section 99.805(1), RSMo . See below for a
full evaluation of both economic liability and social liability.
Inability to Pay Reasonable Taxes
A specific definition that clearly defines "the inability to pay reasonable taxes· was not found in the
Missouri Statues. In the real estate field, the inability to pay reasonable taxes can simply be that that
property value as it currently sits is less that the potential value of the property as renovated or rehabbed.
There is substantial evidence that the property is unable to pay reasonable taxes which result directly
from the age, obsolescence, inadequate and outmoded design and physical deterioration of the property.
The subject property was recently purchased in December 2012 for a sales price of Sll,OOO ,OOO . In the
course of that purchase, an appraisal was completed by Cushman and Wakefield . The appraisers that
signed this report were Thomas S. Helm. MAJ. MRICS, who is a Senior Director and Richard Latella, MAl,
FRICS. who is the Executive Managing Director and Americas Practice Leader for the company. The value
conclusions from this report can be seen in the chart below.
Value ConclusiOns
·----~-' . .
' , ... 1:!:. . .-: -~ =-~""~!-~~~·~ • I
0
•-r ' T"'! ,---.: J • ., .,., ,.,.,
1/1/2015 $12.900.000
In this report, it was noted that the ·as is" value of the property, which accounts for the tenants that were
i n place as of their inspection date of December 5, 2012, was S11,200,000. They also provided an ·as
stabilized " value as of January 1, 2015 of $12,900,000. The value differences between the ·as is" and "as
stabilized " values is due to the fact that the appraisers felt that the subject was not at a stabilized
occupancy. It was estimated that approximately 10,842 square feet would require lease -up to long term
tenants, and that 12,229 square feet would be occupied by temporary tenants. Th is would bring the
subject's occupancy up to a typical market level for a regional shopping mall. Because the subject
property is not considered to be currently stabilized, its fair market value, which is what the assessors in
Missouri base their values, is below that of a stabilized shopping center. Given this fact, the subject
property is not paying reasonable taxes.
We have also been provided the historical operating statements from the property owner for 2009, 2010,
2011, their 2012 budget. and where they are as of January 1, 2013. This can be seen below.
SHANER APPRAISALS, INC. Blight Study Conclusions • 38
Capital Mall Blight Study
INCOME 1/1/2013
ContrKtual Minimum Rents $2,576,309 $2,230,042 $2,154,764 $2,135,350 $1,756,616
lu5e Tennination Income $50,000 so $27,110 so so
Reimbursement Income $1,072,185 $870,690 $769,591 $697,179 $432,050
Marlcetinc/Promotion $55,091 $25,714 $13,433 $14,396 so
Other Tenant Reimbursement $15,173 $12,098 $9,812 $3,571 $392,456
Over-.,e Rent $145,812 $117,037 $190,432 $195,613 $449,948
Other Income $97,741 ~ ~ S69.3n $69.317
TOTAL INCOME $4,012,311 $3,363,956 $3,235,348 $3,116,086 $3,100,447
DP!NSIS
Martcetins $55,091 $49,182 $46,558 $55,968 $55,450
Operations $257,965 $247,988 $UI6,739 $212,154 $205,400
Utilities $343,469 $401,232 $449,375 $506,722 $50l,SOO
Oeanirc $241,322 $268,791 $311,351 $286,908 $285,650
Landscapirc $17,791 $17,352 $12,285 $11,900 $11,900
Security $159,629 $160,362 $164,712 $164,103 $163,900
Other $187,290 $176,179 $180,672 $166,292 $168,880
Manasement Fee $58,828 $68,949 so so so
Real Estate Taxes $288,.603 $284,212 $203,225 $195,055 $182,715
Insurance ~ ~ .lli..lli ill.§§Q ill.§§Q
TOTAl EXPfNSU $1,657,496 $1,713,301 $1,581,431 $1,626,762 $1,603,055
NET Ol'fRATING INCOMf $2,354,815 $1,650,655 $1,653,917 $1,489,324 $1,497,392
As can be seen in this chart, the net operating income for the subject property dropped nearly 30%
between 2009 and 2011, which is the last year that actual numbers were provided. If the in place estimate
of net operating income as of January 1, 2013 were considered, the net operating income would have
declined by over 35% from 2009. Through the three years of actual income and expenses that we have,
the expenses at the subject property have remained fairly stable. The total income of the property has
declined from $4,012,311 in 2009 to the current in place total income of $3,100,447, a decline of nearly
$900,000 . Based on the historical figures, this appears to be due to the decline in the contract minimum
rents.
Regional shopping centers like the subject are almost always purchased for their income generating
potential. If the net income that would be available to the property owner has declined by approximately
35%, that would have an effect on the market value of the subject property. Given that the county
assessor is to value the subject property for taxation purposes at its fair market value, assuming the mill
levy remained constant, it is logical to assume that the taxes that would be paid on the property would
decrease, which would support the blighting factor of inability to pay reasonable taxes.
In addition to the information above, the 14 parcel s that make up the Study Area are currently assessed
and taxed as various county parcels . A summary of the parcels involved and their current tax amounts
follows.
SHANER APPRAISALS, INC . Blight Study Conclusions • 39
Capital Mall Blight Study
---· .
hral 2001 2001 .. 2011 2012
1 $284 ,188.32 $274,156.42 $269,985.04 $169,647.15 $169,508.72
2 $2,318.3 2 $2,236.48 $2,202.45 $2,202.65 $2,000.85
3 $18,013.68 $17,377.80 $17,11339 $17,114.93 $17 ,100.96
4 $8 ,551.76 $8,249.89 S8,1243 6 $6,965.32 $6,959.63
5 $7 ,665.43 $7 ,394.84 $7,282.32 $7,997.72 $7,991.19
6 $18.58 $17.93 $17.66 Sl7.65 $17 .64
7 $4,112.49 $3,967.33 $3,906.96 $3,907.32 $3,904.13
8 $174,800.20 $168,629.71 $166,063.96 $113,598.12 $113,505.42
9 $8,828.65 $9,101.03 $8,962.56 $10,173.89 $10,165 .58
10 $21,470.27 $20,712.36 $20,397.21 $20,399.06 $20,382.42
11 $4,086.37 $3,942.12 $3,882.13 $3,882.49 $3,879.32
12 $53,865.76 $51.964.28 $51,173.64 S49,785.78 $49,745.15
13 $15,385.42 $14,842.31 $14,616.48 $11,394 .89 $11,385.59
14 $63,617.32 $61,371.62 $60,437.84 S49,094.20 $49,054.14
Teal $666,922.57 $64J,IM.12 $04,111.00 $411.UL17 $465,100.74
....... . . -'. :.t:_ t.:!::-'.f .t'· -·-..
Allutment County c.-a, c:...tT-c:un.tT ...
hral Appr-... ...... a.T._ ~flf2001 ..... ~ v.-v-. (2012) TuAmount
1 32% $9,613,000 $3,076,160 $169,508.72 $284,188.32 59.65%
2 32 % $1 24,800 $39,940 $2,200.85 $2,318.32 94.93 %
3 32% $969,800 $310,340 Sl7,100.96 $18,013.68 94.93 %
4 32% $394.700 $126,300 $6,959.63 $8,551.76 81 .38%
5 32% $453,200 $145,020 $7,991.19 $7,665.43 104.25 %
6 32% $1,000 $320 $17 .64 $18 .58 94.94 %
7 32% $221.400 $70,850 $3,904.13 S4 ,112.49 94 .93 %
8 32% $6,437,000 $2,059,840 $113,505.42 $174,800.20 64.93 %
9 32% $576,500 $184,480 $10,165.58 $8,828.65 115.14%
10 32% $1,155,900 $369,890 $20,382.42 $21,470.27 94.93%
11 32% $2 20,000 $70.400 $3,879.32 $4,086.37 94 .93 %
1 2 3 2% $902,750 $288,880 S49,745.15 $53,865.76 92.35 %
13 32% $206,620 $66,118 $11,385.59 $15,385.42 74.00%
14 32% $890,210 $284,867 $49,054.14 $63,617.32 77 .11%
Tot* $22.166.-S7,01J,405 s.s,a.74 $616,122.57 "-""
The subject property has been operated fo r a number of yea rs and has been generating taxes. However,
the taxes generated by the county have been fa lli ng as the property ages, income drops, and vacancies
increase. The appraised value by the county for the properties within the Study Area is $22,166,880 and
results in taxes of S465,800.74 for the 2012 tax year.
We have researched the historical tax amounts of the properties within the Study Area . In general, the
records available go back fiVe years. The total taxes generated by the parcels in the Study Area in 2008
was $666,922.57 . This compares to a total tax generated in 2012 for those parcels of S465 ,800.74. This
SHANER APPRAISALS, INC. Blight Study Conclusions • 40
Capital Mall Blight Study
suggests that the real estate taxes generated by the properties is now only roughly 69.84% of that
generated in 2008. This has resulted in a significant loss in property taxes for Jefferson City.
The tax revenues generated at the subject are lower than they were in 2008 as a result of the decline in
the subject mall's revenues, along w ith the decline in mall properties around the country referenced
earlier in this report The continued deterioration of the subject property both physically with the near
tenn deferred maintenance and economically with the potential continued decline in revenues will
conti nue to see the taxes generated from this property decrease.
One common way to view the potential future for a shopping center is to look at the mall sales per
square foot. Gerard V. Mason, executive managing director of Savills US, stated that high qual ity malls
should take in $400 per square foot, wh i le decent B-class malls should yield about $350 a square foot
Anytime that a mall's sales fall below $300 per square foot, i t is l ikely in very serious trouble. According to
the historical sales data that has been provided, the total tenant sales per square foot are $161.88.
A healthy mall anchor store should have at lea st $200 per square foot and any reta iler that is below $100
per square foot is probably in danger of closing . Based on the infonnation that we have been provided ,
several retailers fit this test and add to a fear of closi ng.
Another critical factor is a store's health ratio, which is also known as occupancy cost, and is calcu lated by
d ividing the annual rent by total sales for the yea r. Healthy mall store ratios average about 11% to 12%.
Any ratio above 15% will likely land a store on a watch list and if it is above 20% the store is probably
destined to go dark. Based on the marketing packet, there were ten retailers that had health ratios that
were above 13%. These are shown below:
~~·':'"",-:~::.
Wilson 's Tota l Fitness 20.61%
Clai re's 15.40%
CJ Banks 14.n %
Modem Na ils 48.22%
Stir Fry_ 33.15%
Christopher and Banks 28.71%
DEB 13.10%
Hallmark 13.29%
Pretzel maker 33.89%
Mastercuts 16.81%
Given the low sales per square foot and the large number of tenants that have a health ratio above 13%,
there is a possibility that there may be store clos ings in the subject center if the sales throughout the mall
do not increase.
Renovation of the property would likely result in a higher value due to an i ncrease in traffic and renewed
interest by retailers to locate i n the mall, and would therefore generate a higher tax base. Renovation of
the property would also result in increased employment, personal property, utility, and sales taxes. In my
opinion, the blighted elements noted previously have resulted in the inability of the affected properties to
pay their reasonable share of taxes.
Economic Liability
The city and other taxi ng districts are highly dependent on real property taxes, personal property taxe s,
uti lity taxes and sales taxes generated in its commercial areas. As discussed in detai l above the Study
SHANER APPRAISALS, INC. Blight Study Conclusions • 41
Capital Mall Blight Study
Area in generating substantially less in real property taxes in the last several years and its real property tax
generation continues to decline. The real property tax generation of the Study Area has decreased to
69.84% of the total that was seen in 2008. Without redevelopment it is expected that the real property
tax generation will continue to decline. Although there is no detailed study of sales tax revenues for the
Study Area rent revenues which are tied directly to sales in retail centers has substantially declined
leading to the inevitable conclusion that sales tax revenues from the Study Area have also substantially
declined and the evidence leads to the conclusion that these revenues will continue to decline without
redevelopment. Clearly the Study Area is not generating the amount of tax revenues to its potential and
thus results in an economic liability.
The decline of the tax revenues is a result of reason of age, obsolescence, inadequate and outmoded
design and physical deterioration of the Study Area and thus by reason of these factors the Study Area is
an economic liability. The decline of the tax revenues is also results from the predominance of the
combination of defective and inadequate street layout, unsafe conditions, deterioration of site
improvements, improper subdivision and obsolete platting, and thus by reason of these factors the Study
Area in an economic liability in its present condition and use.
The Study Area consists of an underutilized property and has not been subject to acceptable growth and
development through private enterprise. The existence of the blighting factors present inadequate or
outmoded design and physical deterioration, when taken as a whole, clearly indicates that the Study Area
constitutes an economic liability in its present condition and use. Because of this and the other blighting
factors, it is unlikely that the Study Area will be redeveloped without assistance.
This concept of an economic liability or the economic underutilization of a property as a basis for blight
has been upheld by the Missouri Supreme Court. The Court has determined that "the concept of urban
redevelopment has gone far beyond 'slum clearance' and the concept of economic underutilization is a
valid one.· Blight exists to the extent an area is operating less than its potential. The community is
harmed by the foregone tangible and intangible benefits resulting from underperformance. The following
are reference to the Missouri Supreme Court Cases.
• parking Systems. Inc. v. Kansas City Downtown Redevelopment Corooration, 518 S.W.2d 11, 15
(Mo.1974). The courts determined thot it is not necessary for on area to be what commonly would
be considered a "slum · in order to be blighted.
• Crestwood Commons Redevelopment Corporation y. 66 Driye-In. Inc .. 812 S.W. 2d 903, 910 (MO.
App. E.D.1991). The courts determined that on otherwise viable use of o property may be considered
blighted if it is on economic underutilizotion of the property.
• State ex. Rei Atkinson v. Planned Industrial Expansion Authority, 517 S.W.2d 36 at 46 (Mo. bane
1975). The courts determined that blight may also be found if the redevelopment of on area Hcould
promote a higher level of economic activity, increased employment, and greater services to the
public.·
SHANER APPRAISALS, INC. Blight Study Conclusions • 42
capital Mall Blight Study
Social Uability
To our knowledge the tenn soc ial liability has not been defined in Missouri 's statutes or in Missouri cases.
The following is the ordinary meaning of the term "social" as found in the dictionary:
• "Of, relating to, or concerned with the welfare of human beings as members of society" and "of or
relating to the interaction of the individual and the group:
liability is defined as:
• "Something that works as a disadvantage. •
Based on the two definitions, "social liability" can be anything that works to the disadvantage of the
welfare of members of a given community or of interaction among such members. The welfare of the
community is substantially based on job opportunities and adequate amenities such as shopping and
community services provided by various taxing jurisdictions from its tax revenue sources. As vacancies
increase and sales decrease the Study Area is less able to provide job opportunities for members of the
community as would be expected from commercial areas of this nature. likewise, a reduct ion in tax
revenues reduces the ability of taxing districts to provide educational and other community serv ices to its
community members. Taken together these factors lead to the conclusion that the Study Area by reason
of the blighting factors constitutes a social liability in its present condition and use.
As discussed in this report, the Study Area is affected by age and obsolescence, inadequate or outmoded
design , and improper subdivision and platting, among the several other blighting factors reviewed in this
Report . Age and obsolescence can be seen with the overall dated appearance of the subject property.
Based on data presented earlier, a regional shopping center is typical considered to be an outmoded
design. The majority of shopping centers that have been built recently have been open -air centers. This
benefits the landlord because people enjoy these shopping districts and it also lowers the util ity and
repair cost as there is no common area to heat and cool.
Based on the data and information contained in this report, I have determined that as of December 9,
2012, the Study Area constitutes both a "social liability" and an "economic liability" and meets the
definition of a "blighted area· according to the definition provided in Missouri 's Urban Redevelopment
Corporations law (Section 353.020 (2) R.S . Mo.) as well as Section 99. 805(1) of the Real Property Tax
Increment Redevelopment Act Further I have determined from my examination of each individual parcel
of the Study Area that more than SO% of the Study Area is a blighted area pursuant to Sections
353 .020(2) and 99.805(1), RSMo and consequently, a preponderance of the Study Area, as a whole is a
blighted area under Sections 353 .020(2) and 99.805(1), RSMo.
SHANER APPRAISALS, INC. Blight Study Conclusions • 43
ADDENDA
• Appraiser Qualifica ti o n s
• Ar ea Demographics
• Glossary
• Additio nal I n fo rma ci o n
SHANER APPRAISALS, INC .
I
I
APPRAISER QUALIFICATIONS
I
SHANER APPRAISALS, INC .
Qualifications of Jason Roos, MAl
Director -Industrial Valuation
Valbridge Property Advisors I Shaner Appraisals, Inc.
Independent Valuations for a Variable World
State Certifications
State of Kansas
State of Missouri
State of Iowa
State of Nebraska
State of North Dakota
Education
BBA University of
North Dakota
Contad Details
913 -451-1451 (o)
913-647 -4095 (d)
Valbridge Property Advisors I
Shaner Appraisals, Inc.
10990 Quivira Road
Suite 100
Overland Park , KS 66210
www.valbridge.com
jroos@valbridge.com
Membership/Affiliations:
Member.
Treasurer.
Appraisal Institute -MAl Designation
Appraisal Institute -Kansas City Chapter
Appraisal Institute & Related Courses:
Business Practices & Ethics
Uniform Standards of Appraisal Practice
Advanced Income Capitalization
Advanced Sales Comparison & Cost Approaches
Report Writing and Valuation Analysis
Advanced Applications
A Debate on the Allocation of Hotel Total Assets
Fundamentals of Separating Real Property, Personal Property, and
Intangible Business Assets
Appraising the Appraisal: Appraisal Review-General
Analyzing Tenant Credit Risk and Commercial lease Analysis
Condemnation Appraising: Principles and Applications
Experience:
Director-Industrial Valuation
Valbridge Property Advisors I Shaner Appraisals, Inc. (2007 -Present)
Appraisal/valuation and consulting assignments include: industrial
buildings, office buildings, retail buildings, and hotels and motels.
Industrial properties appraised include a wide variety of warehouse
and manufacturing facilities located across the Midwest. Assignments
have been concentrated in the Kansas City Metropolitan area , but
assignments have been completed across the country on specialized
manufacturing and warehouse properties.
COMPANY PROFILE
SHANER APPRAISALS, INC.
10990 Quivira, Suite 100
Ove rland Park, Kan sas 662 10
Ph one (913) 451 -145 1 I Fa x (913) 529-4121
www .s hanerapprai sa ls.com
Shaner App rai sa ls, Inc. is a full-se rv ice rea l es tat e va luati o n and consulti ng firm located in Overl and Park,
Kansas. Fo und ed i n 1978, Shaner A ppra i sa ls has established a so lid reputation fo r p ro fess io nal rea l estate
serv ices. Th e fi rm em p loys eightee n full-time app raise rs, incl uding five M A l and o ne SRA des ignated
m embe r o f th e Appraisa l In stitute. O ur profess io nals represent over 100 yea rs o f va luatio n and related
experience, an d three past pres idents of th e Kan sas Ci ty Chap ter o f the Ap praisa l Institute.
Th e firm 's primary mark et is Kansas and Misso uri , but Shaner Ap praisa ls has also completed ass ign me nts
thro ugho ut the U nited States. Th e firm prov id es M ark et Stu d ies, Feas i bi lity An alyses, litiga ti on Support and
Va luati on Services for all types of prope rt y fro m m ulti-fa mily res idences to shoppin g ce nters, o ffi ce build in gs
and indu stri al co m p lexes. Shaner Appra isa ls also has ex tensive expe ri ence in eminent d omai n matt ers an d i n
va luing specia l p u rpose p rope rti es such as nursin g ho mes , undergrou nd sto rage faci l ities, microwave towers,
and rock qu <~rri es. A l l assignments are com p leted o r reviewed by an MAl d es ignated a ppr<~i se r .
LI ST OF SERVI CES
Comm erci<~l p rope rty app raisa ls
Res identia l property appraisa ls
Emin ent d o mai n app raisa ls
Expe rt w it ness testimo ny
Prope rty tax appea ls
M arke t st udies
Feas i bility stud i es
Liti ga t ion su pport
Due d i l igen ce resea rc h
A ppraisa l rev iew
Parti al interest va luat ion
Co nserva tion ease men t va lu ati o n
Rent studies
VALUATION I CO U NSELING PU RPO SES
Fin anc in g
Ad va lo rem tax disput es
Tru sts and est <~tes
Co nd emnatio n
Inves tm ent <~na l ysis
A rbitratio n
Po rtfo l io va l ua tio n
Co llateral <~ssess m e nt
Ri ght o f way acquisitio n
Fin ancial st ruct uring
Bli ght stu d ies
Gene ral rea l estate counse ling
PROPER TY TYPES APPRAISED
Office bui ld ings-si ngle/multi-tenant, standard o ffi ce, m ed ica l office, surgery ce nters
Retai l ce nters -single/m ulti-tena nt, neighborhood , community, reg ional shoppin g ce nte rs
In d ustr ial buildings-fl ex, R&D, d ist ribut io n , m a nuf<~ct uri n g, und ergro und , se lf-s to rage
Land -A ll types
M ulti-fam il y apa rt ment com p l exes, LIHTC, H UD
N ursi ng ho mes
Ho tels, mot el s, exte nded st<~y fac ilities
Single f<~mi l y ho m es, cond o miniums, dup lexes
Chu rc hes
Easeme nt corrid o rs
PAR TIAL CLIENT LI ST
Gove rnm en t Age ncies/Muni ci paliti es
Un ifi ed Govern ment of Wyandotte County/ Ka nsils Cit y,
Kansas
Ci ty of Ga rdner
City o f Overl and Park
Ci ty of Leawood
Ci ty of Lee's Sum mit
Ci ty of Lenexa
Ci ty of Independen ce
Ci ty of O lath e
City of Shawnee
City of W ichita
Ci ty of St. Josep h
Dept. of H ou sing & Urban Developm en t (H UD)
Eudoril Sc hool D i strict
O lathe Sc h ool Dis trict
DeSoto School Dist rict
Blue V alley Sc h ool D i stri c t
Gardner Sc hool D ist rict
Shawnee M iss i o n Sc hool District
Jo hnso n County Ai rport Commis sion
Johnso n County Appraise r's Office
Johnso n Coun ty Board of Cou nty Comm ission ers
Johnso n County Park s an d Recreati on Dept.
Jo hnso n County Was tewater D i stri c t
Ka n sas Dep art ment o f Tra nspo rt at i o n
Ka nsas Highway Patro l
U .S. Dep artm ent of Ju sti ce
U.S . Pos tal Serv ice
GSA
l endin g In stitut ion s
Ban k O ne
Bank Midwest, N.A.
Bank o f A m eri cil
Ban k of Blue Va lley
Bl ue Rid ge Ba nk & Tru st
Be rks hire Mortgage Fi nancial
Bridge r Commerc i al Fundin g
Ca p itol Federal Sav ings
Centra l Ban k of Kansas
G randbri d ge Rea l Esta te Cap i tal
G rea t Southe rn Bank
H ea rtland Bank
H i llc res t Ban k
Intrust Ba n k
Key Bank Comm ercia l Mortgage
LaSa ll e Ban k
M etca l f Ban k
Midland Loa n Services
Misso uri Ba nk & Trus t
MuniMae Midl and, LL C
Newm an Fi n ancial Services
North Am eri Cil n Savi n gs Bank
Northmarq Capit al , Inc .
Peop les Ba nk
Commerce Bank
Country Cl ub Ba nk
Credit Suiss e Fi rst Bos to n
EF&A Funding
First Federa l Ba nk
First Kan sas Bank
First M o rtgage Inves tment Corp orati on
Firs t Na tional Ba nk of O lat he
G M AC Commerc i al Mort gage
M&l Ba n k
Q uantum First Capital
Red M o rt gage Ca pi tal , In c .
Sec urity Ban k of Kansas
Southern Pac ific Ban k
So uth wes t Ban k
Tri ad M ortgage & Realty
U MB Bank
U nion Ba nk
United M isso ur i Bank
US Ban k
Va lley V iew St ate Ba nk
Was hington M o rt gage
W ells Fa rgo
Thelman Fina ncia l
Corporations, Developers and Institutional Clients
A llian z Life Insurance Company
A llsta te In surance
St . Luk e's H ea lth System
Bo y Scouts of America
Burlington North ern
CA LPER S
Cessna Aircra ft Company
Coll iers Tu rl ey M artin Tu cker
Copaken , White & Blitt
Excel Corporation
FMC Corpo rt~tion
GE Cap it al
General Serv ices Administrations
Grubb & Elli s
Hallmark Ca rd s
Hunt Midwes t
).A. Peterson C ompt~ny
Prin ci pal Life Insu rance Company
Prin cipal Mutual Life
Arms trong Teasda le Sc hlafly & Dav is
Husch, Blackwell, Sanders
Craft , Fridkin & Rh yne
De loitte & To uche
Ferree , Bunn , O 'Grady & Runb erg
So nn ensc h ein, N ath & Ro se nt ha l , LLP
Lathrop & Gage
McAnan y Van Cleave & Phillips, P.A .
MHM Pr ope rty Ta x Consultants
Mitchell , Kri st! & Li eber
Ern st & You ng
Sch lage l , Gord on & Kin ze r LL C
Ame ri ca n State s In suran ce
Propert y Tax Resea rch Comp any
Prot ect ive Life In surance Compan y
Sa lvati on Arm y
Sava ge & Browning
Se nt i nel Rea l Estate Company
Shaw nee Miss ion Medical Center
Shelter Ins u rance
Jeffrey Smith Company
State Farm Fi re and Casual ty Insurance
Stern Broth ers
Stephens & Company, Inc.
Terra Ven t ure, Inc.
TRI Capital
Wai -Mart Store s, Inc.
Washington Ca pita l
Weingart Foundation
Ya rco Companies
YWCA
Zimmer Real Estate Service s
Ac counting and law Firm s
Nort on, H ubba rd, Ruzicka & Kreame r
Pay ne & Jones
Orri ck & Assoc iates
Polsinelli Shugart PC
Pri cewa terhou se Coopers
Shook Hardy & Bacon
Spence r Fane Britt & Browne
Stin son Morri so n Hecke r
Wallace, Sa unders, Au st in, Brown & Enoc hs
AREA DEMOGRAPHICS
SHANER APPRAISALS , INC.
..............
2000 Population
2010 Population
2012 Population
Execut 1ve Summary
Jefferson City
Jefferson City, MO (2937000)
Geography : Place
2017 Population
2000-2010 Annual Rate
201o-2012 Annual Rate
2012 -2017 Annual Rate
2012 Male Population
2012 Female Population
2012 Median Age
Prepared by laird GoldsboroughMAI
Jefferwn Oty, MO (29370 ...
41,960
43,079
43,506
44,636
0 .26%
0.44%
0 .51 %
50.7%
49 .3%
37 .7
In the Identified area , the current year population Is 43,506. In 2010, the Census count in the area was 43,079. The rate of change since
2010 was 0.44 % annually . The fiVe-year projection for the population in the area is 44,636 representing a change of 0.51% annually from
2012 to 2017. Currently, the population Is 50.7% male and 49.3% female . .......
The median age In this area Is 37. 7, compared to u.s . median aoe of 37.3 . .............
2012 White Alone
2012 Black Alone
2012 American Indian/Alaska Native Alone
2012 Asian Alone
2012 Pacific Islander Alone
2012 Other Race
2012 Two or More Races
2012 Hispanic Origin (Any Race)
78.6%
16.2%
0 .3%
1.7%
0 .1 o/o
0 .9%
2 .3%
2 .9%
Persons of Hispanic origin represent 2 .9% of the population In the Identified area compared to 16.9% of the U.S. population. Persons of
Hispanic Origin may be of any race . The Diversity Index, which measures the probability that two people from the same area will be from
different race/ethnic groups, is 39.3 in the Identified area, compared to 61.4 for the U.S . as a whole. " ........ ,.
2000 Households
2010 Households
2012 Total Households
2017 Total Households
2000-2010 Annual Rate
2010-2012 Annual Rate
2012-2017 Annual Rate
2012 Average Household Size
16,403
17,278
17,432
18,001
0 .52 %
0 .40%
0 .64 %
2.25
The household count in this area has changed from 17,278 in 2010 to 17,432 in the current year, a change of 0.40% annually . The five-year
projection of households Is 18,001, a change of 0.64% annually from the current year total. Average household size Is currently 2.25,
compared to 2.21 In the year 2010. The number of families in the current year is 10,100 In the specified area.
DIID lilliE lncume i5 opr-essed In OJrTftlt dollws s-a: U.S. Census a..-, Census 2010 Sumnart Air I . Esn foreosts for 2012 ..S 2017. Esri converted Census 2000 data Into 2010 geogfllphy .
January 29, 2013
il e
......... ............ lnceMe
Execut ive Summa r y
Jefferson City
Jefferson City, MO (2937000)
Geography : Place
2012 Median Household Income
2017 Median Household Income
2012-2017 Annual Rate
A.....-Houoohold 1 ....
2012 Average Household Income
2017 Average Household Income
2012·2017 Annual Rate ... ~ .......
2012 Per Capita Income
2017 Per Capita Income
2012-2017 Annual Rat.e
Heuo1holll• -.y lncDIIM
Prepared by laird GoldsboroughMAI
Jefferson Oty, MO (29370 ...
$46,525
$55,537
3 .60%
$58,464
$64,945
2 .12%
$25,845
$28,630
2 .07%
Current median household Income Is $46,525 In the area, compared to $50,157 tor all U.S. households. Median household Income is
projected to be $55,537 In five years, compared to $56,895 for all U.S. households
Current average household income is $58,464 in this area, compared to $68,162 tor all U.S households. Average household income is
projected to be $64,945 In five years, compared to $77,137 for all U .S. households
Current per capita Income Is $25,845 In the area, compared to the U .S. per capita Income of $26,409. The per capita income Is projected to
be $28,630 In five years, compared to $29,882 tor all U.S. households
" ........
2000 Total Housing Units
2000 Owner Occupied Housing Units
2000 Owner Occupied Housing Units
2000 Vacant Housing Units
2010 Total Housing Units
2010 Owner Occupied Housing Units
2010 Renter Occupied Housing Units
2010 Vacant Housing Units
2012 Total Housing Units
2012 Owner Occupied Housing Units
2012 Renter Occupied Housing Units
2012 Vacant Housing Units
2017 Total Housing Units
2017 Owner Occupied Housing Units
2017 Renter Occupied Housing Units
2017 Vacant Housing Units
17,580
9 ,895
6,509
1,176
18,852
10,085
7,193
1,574
18,951
10,196
7,237
1,519
19,394
10,610
7,390
1,393
Currently, 53.8% of the 18,951 housing units in the ar ea are owner occupied; 38.2%, renter occupied ; and 8 .0% are vacant. Currently, In
the U.S ., 56.5% of the housing units in the area are owner occupied; 32.1% are renter occupied; and 11.4% are vacant. In 2010, there
were 18,852 housing units In the area -53.5% owner occupied, 38.2% renter occupied, and 8 .3% vacant. The annual rate of change in
housing units since 2010 Is 0 .23%. Median home value in the area Is $133,265, compared to a median horne value of $167,749 for the U.S .
In five years, median value is projected to change by 2.29% annually to $149,256 .
.,.. llaele: ll'lalme is ~ "' wnent dolclrs
~u.s. Census aur-.. Census 2010 Sammary Fir 1 . Esn fOROSis f or 20U imd 2017 . Esn converted Census 2000 data into 2 010 geool'l1ph y.
January 29, 2013
< 20 1 Esn
GLOSSARY
SHANER APPRAISALS, INC.
GLOSSARY
Unless otherwise noted, the following definitions are taken from The Dictionary of
Real Estate Appraisal, Fourth Edition , published by the Appraisal Institute in 2002.
Accrued Depreciation
The difference between the reproduction or replacement cost of the improvements
on the effective date of the appraisal and the market value of the improvements on
the same date. (p. 4)
Appr1lul
(n .) The act or process of developing an opinion of value; an opinion of value. (adj.)
Of or pertaining to appraising and related functions such as appraisal practice or
appraisal services. (USPAP, 2002 ed.) (p . 15)
Extraordinary Assumption
An assumption, directly related to a specific assignment, which, if found to be false,
could alter the appraiser's opinions or conclusions. Extraordinary assumptions
presume as fad otherwise uncertain information about physical, legal, or economic
characteristics of the subject property; or about conditions external to the property,
such as market conditions or trends ; or about the integrity of data used in an
analysis. An extraordinary assumption may be used in an assignment only if:
• It is required to properly develop credible opinions and conclusions;
• The appraiser has a reasonable basis for the extraordinary assumption;
• Use of the extraordinary assumption results in a credible analysis; and
• The appraiser complies with the disclosure requirements set forth in USPAP
for extraordinary assumptions.
(USPAP, 2002 ed .) (p . 107)
Fee Simple Estate
Absolute ownership unencumbered by any other interest or estate, subject only to
the limitations imposed by the governmental powers of taxation, eminent domain,
police power, and escheat. (p. 113)
Highest and Best Use
The reasonably probable and legal use of vacant land or an improved property,
which is physically possible, appropriately supported, financially feasible, and that
results in the highest value. The four criteria the highest and best use must meet are
legal permissibility, physical possibility, financial feasibility, and maximum
profitability . (p. 135)
Hypothetical Condition
That which is contrary to what exists but is supposed for the purpose of analysis.
Hypothetical conditions assume conditions contrary to known facts about physical ,
legal, or economic characteristics of the subject property; or about conditions
external to the property, such as market conditions or trends; or about the integrity
of data used in an analysis. A hypothetical condition may be used in an assignment
only if:
• Use of the hypothetical condition is clearly required for legal purposes, for
purposes of reasonable analysis, or for purposes of comparison;
• Use of the hypothetical condition results in a credible analysis; and
I
• The appraiser complies with the disclosure requirements set forth in USPAP
for hypothetical conditions.
(USPAP, 2002 ed.) (p.141)
Investment Value
The specific value of an investment to a particular investor or class of investors
based on individual investment requirements; distinguished from market value,
which is impersonal and detached. See also Market value (p. 152)
Leased FH Interest
An ownership interest held by a landlord with the rights of use and occupancy
conveyed by lease to others. The rights of the lessor (the leased fee owner) and the
leasee are specified by contrad terms contained within the lease . (p . 161)
Leasehold Interest
The interest held by the lessee (the tenant or renter) through a lease transferring the
rights of use and occupancy for a stated term under certain conditions. See also
Negative leasehold; Positive leasehold. (p. 162)
Market Value
The most probable price which a property will bring in a competitive and open
market under all conditions requisite to a fair sale, the buyer and seller each ading
prudently and knowledgeably, and assuming the price is not affeded by undue
stimulus. Implicit in this definition is the consummation of a sale as of a specified
date and the passing of title from seller to buyer under conditions whereby:
1. buyer and seller are typically motivated;
2. both parties are well informed or well advised and ading in what they consider
their own best interests;
3. a reasonable time is allowed for exposure in the open market;
4 . payment is made in terms of cash in US. dollars or in terms of financial
arrangements comparable thereto; and
5. the price represents the normal consideration for the property sold unaffeded
by special or creative financing or sales concessions granted by anyone
associated with the sale.
(12 C.F .R. Part 34.42(g); 55 Federal Register 34696, August 24, 1990, as amended
at 57 Federal Register 12202, April 9, 1992; 59 Federal Register 29499, June 7,
1994) (p. 177)
Negative Leasehold
A lease situation in which the market rent is less than the contrad rent. (p . 193)
Neighborhood
A group of complementary land uses; a congruous grouping of inhabitants,
buildings, or business enterprises. (p. 193)
Positive Leasehold
A lease situation in which the market rent is greater than the contrad rent.
(p. 215)
Replacement Cost
The estimated cost to construd, at current prices as of the effedive appraisal date, a
building with utility equivalent to the building being appraised, using modem
materials and current standards, design and layout. (p. 244)
Reproduction Cost
The estimated c ost to construct, at current prices as of the effective date of the
appraisal, an exact duplicate or replica of the building being appraised, using the
same materials, construction standards, design, layout, and quality of worbnanship
and embodying all the deficiencies, superadequacies, and obsolescence of the
subject building. (p . 244)
Use Value
The value a specific property has for a specific use; may be the highest and best use
of the property or some other use specified as a condition of the appraisal; may be
used where legislation has been enacted to preserve farmland , timberland , or other
open space land on urban fringes . (p. 303)
ADDITIONAL INFORMATION
SHANER APPRAISALS, INC.
July 24, 2013
JasonRoos
10990 Quivira, Suite 100
Overland Park, KS 66210
jroos@valbridge.com
Re: Capital MaD Property Conditions
Dear Mr. Roos,
Jmaiellec:d
Gcocnl Managu
Covington Realty Partoen
S73) 193-5437 (Office)
(S73) 893-5447 (Fax)
jrccd@coYin~com
Covington Realty Partners is the property manager for the Capital Mall property in Jefferson
City, Missouri. On June 11 , 2013 , I personally toured the Capital Mall to view the property conditions on
behalf of the property owner. During my tour I noted the following property conditions that appear to be
relevant to your work in updating the blight study for the Capital Mall:
Physiul Deterioration and Potential Safety Issues.
1. Facades-The ~e of the mall property is in poor condition in several places. See
enclosed picture 1 for an example of typical f~e conditions.
2 . Roof-The roof is in poor condition in several places. There are a substantial number of
active roof leaks and signs of a history of roof leaks in 14 of 30 of the tenant areas
observed. In addition, substantial repairs will be needed to the roof parapet. See enclosed
pictmes 2 to 11 for evidence of the roof condition and leaks found.
3 . HV AC-The HV AC system is in poor condition. It has been recommended that 11
HV AC units be replaced in the short tenn due to their substantial deterioration, age and
obsolescence.
4. Steel Savice Doors--Qne..half of the steel service doors are rusted and deteriorated
along the door jambs. See enclosed picture 12 for an illustration of the typical rusted steel
door.
5. Painted Fmishes----Several tenant entries are in need of immediate painting.
6 . EIFS-Damage was observed to the underlying EIFS (~) at several of the tenant
entries, most notably at vacant spaces at the southern cod of the building. See enclosed
pictures 13 to 16. See also picture 17 for typical dried and aacked control joint sealant
found on the tbrougbout the ~e.
July 24 , 2013
Page2
7. Suspect Mold-Visual signs of suspect mold have been identified two tmant areas. See
enclosed picture 8 and 11 . This is a safety and health issue, in addition to a deterioration
issue .
8. Pavement-As you already noted the parking lot payment is higbly deteriorated and in
need of replacement. See enclosed pictures 18, 19 and 20 for recently taken of the
parlcing pavement conditions.
9. Curbs-The curbs are deteriorating in several places throughout the property. See
enclosed picture 21 of a damaged curb on the property that was typically observed .
10. Trip Hazard-At west side of JC Penney a trip hazard was identified . See enclosed
picture 22.
11. Service Entry Lights-There are several damaged at lights over service entry doors . See
enclosed picture 23 for typical missing lights over service entry doors. This is a safety
issue as much as a deterioration issue.
12. Windows-Replacement needed at small anchor tenant at south end of building . See
enclosed picture 24 .
Fire Safety . The fire sprinkler system has not been tested since October 2009 and it is supposed
to be tested annually. Picture 25 shows the sprinkler riser with expired inspection tag. Clearly
lack of testing is a fire safety issue.
ADA Coaformaace. Although we have not had a full ADA review there are some known non-
conformance issues. Some identified issues are:
1. ADA parking not properly tnarked . For example, one posted sign for multiple
handicapped accessible spots. See enclosed picture 26 .
2. No signage for wheel chair accessible facilities .
Please contact me should you have any questions.
A-~eRJ (
458552 16.2
Capital Mall
Pictures -June 11 ,2013
1. Typical fa~de ooadition.
2. Roof surface.
4. Damaged roof and wora surface.
45855216 .2
6. South side of roof with ponded water and vegetation growth.
4S8SS2 16.2
8. Staiaed ceilia~ tile with mold in teaant 52.
458552 16.2
10. Typical stained ceiling tiles.
4S8SS2 16 2
12. Typical rusted steel service door.
458552 16.2
14. Damaged ElF'S a ad paiat at southern side of building.
45855216.2
I
16. Damaged EIFS aad paiat at southern side of building.
4S85S216.2
18. Damaged asphalt pavement at entry to service area.
4SIISS216.2
I
I
I
20. Damaged asphalt pavement.
I
4S8SS216.2
21. Typical damaged concrete curb.
22. Trip laazard adjaceat to JC Penney.
45855216 2
24. Damaged window with water iafiltratio• at vacant minor anchor tenant.
451552 16.2
26. Accessible parking with one sign for three spaces.
45855216.2
•• News: National
llll&e~~eall t •
October 03, 2012
Written by Randyl Drummer (rdrummer@costar.com)
The De-Mailing of America : What's Next for Hundreds of
Outmoded Malls?
Strained by Online Commerce, Changing Shopper Preferences and Trendier Competition, Many
Outmoded Malls Face Bleak Future
The widening gap between strong malls with rising sales and failing malls that are hemorrhaging retailers,
sales dollars and foot traffic has led to dire forecasts by some analysts for the future of older enclosed
malls as changing demographics and buying habits suck the life from aging and poorer quality properties .
Many trade areas are unable to support multiple malls, with dominant properties increasingly attracting
retailers and shoppers at the expense of outmoded centers. Some of these properties, memorably
documented on web sites like Deadmalls .com , are so devoid of shoppers and stores that they may be
suitable only for demolition or as sets for an episode of "The Walking Dead ."
REITs like Simon Property Group (NYSE : SPG) and General Growth Properties (NYSE : GGP), the nation's
largest mall operators, have gotten the message and are busy divesting lesser-performing properties .
Meanwhile, emboldened by low prices for these older malls, investors are beginning to snap up the
properties, confident they can reposition and turn around malls that are on life support, or raze it to gain
access to the often-valuable land to build apartments or other uses.
The litany of issues facing distressed malls and large shopping centers is well documented, with ills
ranging from changing neighborhoods, increased competition from online sales, the appeal of newer
lifestyle and power centers, consolidation of anchor stores and sharp downsizing by in-line tenants.
In a widely quoted report, Green Street Advisors has forecast that 10% of the nation's 1,000 enclosed
malls will fail by 2022, eventually converting to uses other than retail.
Ed itor's Note: This is the first of a two-part CoStar series on aging and distressed malls. Next week: What
strategies have been effective as communities and owners try to reclaim a growing inventory of obsolete
retail space?
Age appears to be a contributing factor. Of more than 200 malls and large U.S. shopping centers with
250,000 rentable squa r e feet or higher that are hampered by vacancy rates of 35% or higher --a clear
marker for shopping center distress --86.5% were built before 2000; according to CoStar Group data .
Of these distressed regional mall, power center and community center properties, 43 .5% were built in the
1970s and '80s, another one -quarter were built in the 1990s, and 17.5% were built in the 1960s and
prior. The average center in the distressed group was built in 1983 and had a vacancy rate of 50 .6%.
Among the 44 regional and super-regional malls (usually malls of 1 million square feet or above) with
distressed vacancy, the average rate was 54 .5%, with older super regional properties built from 1960 to
1990 averag ing just under 60% vacant.
We're Not Overbuilt, We're Under-Demolished
•1 don't think we're overbuilt, I think we're under-demolished, • said Daniel Hurwitz, president and CEO of
Copyright (c) 2012 CoStaf Really lnformatiou, Inc. AJ rights reserved.
CONTINUED: The De-Mailing of America: What's Next for HW'Mirada of Outmoded Malls?
DDR Corp ., a Cleveland -based REIT, during ICSC's recent Western States conference in San Diego. "When
you have [tenants] looking for space and nothing new being built, and we're sitting at mid-90%
occupancy levels, it's hard to argue we're overbuilt when they're scrambling to find 10,000 square feet."
"There is a sense of reality that we all have to come to that there are projects that are not going to lease .
Retail has a finite lifespan and once you reach that lifespan, you can put up all the signs you want, and
charge as low rent as you want, but that doesn't make [tenants] want to take the space ."
Follow Randy Drummer on Twitter for live news updates.
As DDR 's Hurwitz makes clear, shopper's preferences have changed and demand for large enclosed malls
is quite different than It was 20 years ago. Changes in shopping patterns and preferences is also readily
apparent in the shrinking number of department stores and the consolidation among trad itional shopping
center anchors like Sears Hold ings, Kmart, Best Buy, The Gap and Office Max .
All of those chains have announced plans to shut down stores in 2012 . The announced closures for these
five retailers alone could add another 15 million squa re feet of mostly mall and power center space to the
market this year, according to analysis from Property and Portfolio Research (PPR), CoStar's real estate
analytics and forecasting company.
But analysts also see the closings and repositionings as a healthy process. As market forces cull weaker
properties, successful malls grow stronger.
"Malls and buildings age. We don't design for the life-cycle of buildings like we used to 50 or 60 years
ago," said Robert Yuricic, an architect with Greenbergfarrow, a retail-oriented design firm and the second -
largest restaurant architect in the country. "Malls are designed for a much shorter shelf span and they
need to be refreshed ."
Many of the earliest malls were buildings connected by pedestrian walkways and common areas, si mi lar
to today's lifestyle center. Many malls began to tum inward in the 1960s and '70s, with the typical
suburban mall composed of department stores and smaller shops connected by a roof, essentially forming
an air-conditioned cave, Yuricic noted .
Walking into such malls is "like going into the bowels of a casino, where the door seems to disappear and
you can't find your way out," he said .
"People want to go to what's new and shiny and if you don't give it a facelift, it becomes old and tired and
not able to attract the younger, more ch ic crowd with more disposible income," Yuric ic said .
Kristin Mueller, executive vice president and director of retail business development with Jones Lang
LaSalle in Atlanta, has a simple message to those who would write their obituary: Malls are not dead.
"The vast majority of the malls in the U.S. will continue to be incredibly relevant and are thriving," Mueller
sa id . "There are many indicators that show malls are going very strong; you see It in thei r sales
performance and In the REIT stocks of those that own two-thirds of the malls in this country.
"There are many different ways that we as an Industry are working with malls to make sure they're
relevant for thei r shoppers and communities, usually through a combination of new retail and other
alternative uses," Mueller said.
Mueller acknowledged that some, "perhaps more than a handful," of the country's stock of 1,200 to 1,400
endosed malls are in serious trouble. "Those malls have usually been unfavorably impacted by their
surrounding communities, or they've been outflanked by bigger, better competition" from lifestyle and
power centers, Mueller said .
Copyright (c) 2012 CoStar Really Information, Inc. AI righls reserved .
CONTINUED: The De-Mailing of America: What's Next for Hundreds of Outmoded Mah?
Distress is still a significant factor for these properties, even as the bear market for retail investment
appears to be coming to an end and transaction activity Is now at par with the average annual volume of
the past decade .
About 11% of total deal volume by dollar value over the past four quarters was from forced sales, down
from nearly 20% in early 2011 but well above the average 1% from 2000 to 2008, according to PPR .
It appears almost certain that the pipeline of distressed retail property will continue to flow, with plenty of
commercial mortgage-backed securities (CMBS) loans backed by collateral that's behind on payments and
carrying thin debt service coverage ratios.
These distress deals often reflect financing Issues rather than prevailing market conditions . Not
surprisingly, their troubles have drawn the attention of Wall Street rating agencies that are sufficiently
worried enough about the widening gap between the country's best and worst performing malls to put out
warnings that could further affect the supply of credit and finandng to the mall sector.
Fitch Ratings said Its "very cautious " outlook on U.S. malls has prevented the agency from rating some
CMBS transactions this year. While It's fa irly easy to understand the dynamics of the best and worst
properties, the condition of the second -tier malls in the middle is more difficult to parse, Fitch said in a
recent report.
Fitch-rated deals Include about 1,150 retail loans of over $20 million, many secured by malls. Of these,
126 are already In spedal servicing and 44 assets are real estate owned (REO) and many are among the
largest contributors to Fitch Ratings' overall expected deal losses.
Who Will Buy A Dying Mall?
In its own report last summer, Moody's Investors Service also noted the widening performance gap
between stronger and weaker malls . When a marginal mall defaults, losses can well surpass those typical
for a commerdal property loan.
"Renovating or reconflguring an underperforming mall may cost many millions of the dollars," said Tad
Philipp, director of Moody's CRE research. "What's more, should the location lose its viability for retail
altogether, the value to revert to land less demolition cost [will produce] an even greater loss."
Overall, however, mall investment has actually been stronger over the past few years as a percentage of
total retail investment than It was during the peak of the last cycle, said PPR real estate economist and
retail spedalist Ryan McCullough .
CoStar COMPs data for the largest U.S. markets shows that mall Investment comprised 34% of total
shopping center transaction dollar volume from 2010 to the present, up from 28% between 2005 and
2007.
"I don't think that Investors have necessarily been scared off from malls due to the obsolescence of a
subset of the category," McCullough said . "Investors, however, are pickier about the quality of the mall
properties purchased today, which is showing up in the pricing data."
On a dollar-per-square-foot basis, malls with a vacancy rate of 5% or less traded at a 45% premium over
those with higher than 5% vacancies from 2010 to present. During the 2005-07 market peak, the
premium was a negligible 2%, he noted .
"The short of It is that investors are recognizing quality malls --those with h igh occupancies, solvent
anchor tenants, good population density and access to affluent shoppers --as stable, low-risk, income-
produdng assets and will pay up for them today," McCullough said .
Copyright (c) 2012 CoStar Really Information. Inc. AJ rights reserwct
CONTINUED: The De-Malting of America: What's Next for Hundreds of Outmoded Malls?
"Poor quality malls, on the other hand, are either not trading or selling at a steep d iscount, and pe r haps
are scheduled for demolition or conversion ."
"As an industry, we're not going to start throwing up malls as the economy recovers," added JLL's
Mueller. "In fact we stopped building malls a while ago and started to build lifestyle centers in n iche lnflll
locations between malls."
Instead, real estate services providers like Mueller and her JLL team are focusing on creati ve
redevelopment and repositioning strategies for distressed properties . Often means chang ing out the type
and size of the retail --or considering non -retail uses, such as a university or hea lth care facility. Mega -
churches have taken over former anchor spaces. Others have become call centers and government
offices .
Even malls that continue to thrive are being redesigned as town squares -adding more entertainment and
service elements. Simon Property is remodeling 15 to 20 malls a yea r , adding such amen it ies as electric-
car charging stations and stadium -seating theaters .
Malls today have to "provide a unique set of shopping, dining and entertai nment experiences," Simon's
President and COO Richard Sokolov told the New York Times, Including scheduling 20,000 events a year
to draw traffic, such as cook ing demonstrati ons .
As the mall's 50 -year reign as the ultimate shopping destination appear to be coming to an end , CoStar
News w ill look at examples of successful mall adaptations In a follow up story next wee k .
Follow Randy Drummer on Twitter for live news updates .
Copyrighl (c) 2012 CoStar Really Information. Inc. AJ rights reserved.
~· Ne-: National
lilA&!*'' 1
October 10, 2012
Written by Randy! Drummer (rdrummer@costar.com)
Can This Ma ll Be Saved? Elements Needed for a Turnaround
Include Lowe r Debt , Deep Pockets
Despite Major Risks, Some Gutsy Owners and Investors Are Hoping To Cash In On Value-Add
8-Ma/1 Turnarounds and Repositionings
Last week, CoStar News reported on the daunting challenges faced by hundreds of outmoded malls i n
rema ining relevant in a Increasingly Darwinian retail environment. In this, the second of a three-part
series, we look at the signs that may signal a mall's days may be numbered, and how some gutsy
investors are taking on the challenge of reviving moribund properties.
According to retail property experts, changes in a couple of key vital signs often provide the first signs
that a mall may be In trouble .
Consistent declines in retail sales per square foot over an extended time Is one big warning sign,
according to Gerard V . Mason, veteran retail specialist and executive managing director of Savills US .
Higher quality class A malls should take in at least $400 per square foot, while a decent B-class mall will
yield about $350 a square foot. Any time a mall's sales fall below $300 per square foot, It's likely in very
serious trouble, according to Mason .
Likew ise, a healthy mall anchor store should log $200 at least per square foot, and any anchor that falls
below $100 a square foot is probably in imminent danger of closure.
Another critical factor Is a store's so -called health ratio, also known as occupancy cost, which Is calculated
by dividing the annual rent by total sales for the year. Healthy mall store ratios average about 11% -
12 %. Any ratio above 15% will likely land the store on a landlord's tenant watch list, and above 20%, the
store is probably destined to go dark.
Once one or more anchors or junior anchors close, it sets off a chain reaction of reduced shopping traffic,
increased financial pressure on smaller in-line stores and decreased revenue for maintenance and
operations that can quickly send a mall --along with many surrounding businesses that benefit from mall
traffic --into a death spiral.
"The retail business Is very Darwinian. Formats come and go, and right now is a very dangerous time to
be invested in B malls," Mason said . "A lot of them will survive, but the competition has become almost
overwhelmingly stronger than before the downturn."
cavernous Gap Between the Have's and Have-Nots
On paper, u.s. regional malls are among the strongest performing types of assets for real estate
investors. Total returns for publicly traded regional mall companies increased 48.5% at the end of the
third quarter from a year ago, the highest among all retail types, according to the FTSE NAREIT US Equity
REIT Index.
But a cavernous gap divides the performance of top-tier malls that attract the trendiest retailers and rents
are on the rise, and older, lower-grade enclosed properties that struggle to attract foot traffic. Only about
one-third of the 1,300+ malls in the U.S. qualify as high-growth, Investment-grade properties, according
to Savills' Mason .
"The recovery has been uneven across mall quality types," said Mason . "In the Midwest and other lagging
Copyrigtll (c) 201 2 CoStar Realty Information, Inc. AJ rights reseM!d.
CONTINUED: Clln This Mall Be S..ved? Elements Needed for a Turnaround Indude Lower Debt, Deep Pockets
areas, the second mall in a three -mall town may be on the brink of not being worth Its debt. The
recession has exacerbated the gap between the mall haves and have-nots."
As retailers review their sales performance per store with an eye on trimming costs, the under-performers
at have-not malls are especially vulnerable to a round of closings.
The ongoing trend among retailers toward smaller stores also contributes to the widening gap. Mall
staples such as Old Navy, which used to occupy 25,000-square-foot stores, are now comfortable in
10,000 square feet. Even the mall in-line tenants have downsized to smaller, more productive stores.
Vacancies from down-sizing retailers are often welcomed at successful malls as they provide an
opportunity to sign more retailers at higher rents. But for a struggling mall, the empty spaces just
reinforce a negative perception among shoppers. Meanwhile some retailers are simply foregoing B mall
locations altogether, including Lululemon Athletica, a company specializing in high-end yoga-style
exercise apparel.
"We have focused on only being in very strong malls," said Christine M. Day, president and CEO, of
Lululemon Athletica during a recent conference call with investors. "We've had a real estate strategy of
not bundling or taking weaker malls, and we go to [lifestyle] centers or streets, which allow us to really
drive our business through community."
Sifting the Viable from Lost causes
In many cases, the prospects for reviving a dead mall as a viable retail property are not good. The best
option may be to demolish and start over with a different use that does have demand, such as residential
apartments.
However, in cases where an older property has been over-shadowed by new competition, and the location
continues to enjoy strong demographics capable of supporting a large retail presence, investors have
been successful in repositioning former failed malls. In general, these successful turn-arounds appear to
involve a combination of three main elements: deleveraging, 'de-mailing' and deep pockets .
Buying over-leveraged but otherwise viable malls out of foreclosure can provide investors with an
opportunity to acquire the property at a basis low enough to justify paying for capital improvements and
attracting retailers with lower rents .
Rouse Properties Inc., (NYSE : RSE) and CBL & Associates Properties (NYSE: CBL) have both stepped up
to buy B-class suburban malls, particularly where they can find so-called "only game in town"-type
properties.
Follow Randy Drummer on Twitter for live news updates.
Earlier this year, Rouse acquired Grand Traverse Mall, a 590,000-square-foot enclosed mall in Grand
Traverse, MI, out of receivership for $66 million . The mall was formerly owned by the upstart REITs
former parent GGP, which handed nearly a dozen malls back to its lender last year.
In another recent example, West Manchester Mall, a 742,000-square-foot enclosed center built in York,
PA, in 1981, recently sold to M&R Investors after spending more than a year on the market for $17.5
million --less than $24 per square foot and far below the price the previous owner, The Lighthouse
Group, paid several years ago.
Mason, whose firm represented the seller, said the sale involved "a classic de-mailing scenario."
The 62% occupied mall faced competition from York Town Center, a CBL & Associates-owned power
center that opened a few miles away. After the power center opened in 2007, JCPenney and Value City
Copyrigtt (c) 2012 CoStar Realty Information. Inc. AI rights reserved.
CONTINUED: can This Mall Be Saved? Elements Needed for a Tumarouncllndude Lower Debt, Deep Pockets
stores went dark at West Manchester, but Ughthouse was able to lease the spaces to Wai-Mart and
Kohl's.
A Macy's department store and Regal Cinemas theater also anchor the center. However, sales at the in -
line shops gradually fell and several national chains left the mall. The remaining shops have been
converted to month-to-month leases and the In-line space will likely be demolished and converted to a big
-box power center.
"It was a classic case of too much mall GLA [gross leasing area] in a one-mall town, • Mason said. •aut it
still had a reason to exist, with an excellent location, and there was a need for big box stores in the area."
Many malls haven't aged very well and shoppers want to go where it's shiny and new. Any successful
turnaround often requires a major property makeover. This may be even more true in highly competitive
retail markets, such as Santa Monica.
Before Macerich Co. removed the roof and completely remodeled and re-tenanted with interesting shops
and restaurants, Santa Monica Place located at the bottom of the Third Street Promenade in Santa
Monica, CA, was one of those old-school B malls with B tenants, noted Southern California retail property
expert Steve Jaffe, executive vice president and general counsel with BH Properties.
"Macerich has deep pockets and spent a lot of money and was able to raise the stakes and go upscale,
but they already owned the mall," Jaffe said, conceding that new ownership might have a difficult time
obtaining financing for such a venture.
"It's one thing if you already own it and want to demolish, It's another to step into it as a new owner.
Until the financing market heats up across the board, lenders won't readily finance what effectively would
be vacant retail rehab projects without tenants lined up."
NEXT WEEK: CoStar spotlights 'have-not' malls that are using innovative strategies and drafting
unconventional tenants to revive former troubled mall properties.
Copyrigtt (c) 2012 CoStar Realty Information. Inc. AI rights reserved.
EXHIBITE
DEVELOPMENT SCHEDULE
Acquisition
Renovation*
* Dates are proposed and ap proximate
42 4 11005 12
December 20 12
Co mmencin g Feb ru ary 20 14 , rehabi litate Capita l
Mall Building, common area s, and infrastructure ;
co mpl ete construction/rehabilitation by Augu st
20 14
Commenc in g February 2015 , redevelop and
lease /se ll vacant pad site and redevelop and lease
vaca nt unit s within Capita l Mall ; comp lete
co nstruction /devel o pment by Au gust 2015
Co mm enc in g February 20 16, develop and lease/sell
vaca nt pad si te and redevelop and lea se vacant unit s
wi thin Capital Mall ; complete
co nstructi on/development by August 20 16
Com men cin g February 20 17, develop and lease /sell
vaca nt pad site and redevelop and lease vacant units
wit hin Cap ital Mall ; co mplete
co nstru ction/development by August 2017
Co mmencing February 20 18 , rede ve lop and lease
remaining vaca nt unit s wit hin Cap ital Mall ;
complete development by Au gust 20 18
E-1
EXHIBIT F
SO URCES AN D USES OF F UN DS & ES TIMATE D REDEVELOPM EN T PROJECT
CO ST S AN D REIMBUR SABLE PROJECT CO ST S
E
~
Ql c:
:.:J
42411 005 12
Reimbursable Project Costs*
Ca te gory
'!~ •
Total Pro ject Dev eloper's CID 1'.4
Development Costs Costs Costs nF-* Sales Tax
Land Acquisition $ 11 ,000,000 $ 11 ,000,000 $ . $ .
Hard Construction Costs $ 20,316,500 $ 6,619,976 $ 9,604 ,98 7 $ 4,0 91,537
Renovations $ 8,680,500 $ -$ -$ -
l andscapin g $ 250 ,000 $ -$ -$ -
Public Space FF&E $ 886 ,000 $ -$ -$ -
Comron Area lmprovrre nts $ 10,000 ,000 $ -$ -$ -
Replacerrent RMU 's $ 500,000 $ -$ -$ -
Soft Renovation Costs $ 3,115 ,825 $ 1,11 5,825 $ 1,000 ,000 $ 1,000,000
Archooctura l & Engineeri ng $ 350,000 $ -$ -$ -
General Conditions $ 100 ,000 $ -$ -$
Taxes, Insurance, Appraisal $ 50 ,000 $ -$ -$ -
Financing Costs/Co nst lnerest $ 1,000 ,000 $ -$ -$ -
Adninis lr ative /Overhead $ 300 ,000 $ -$ -$ -
Legal $ 250 ,000 $ -$ -$ -
Survey $ 50 ,000 $ -$ -$ -
Developer Fee $ 1,015 ,825 $ -$ -$ -
Contingency $ 2,451 ,650 $ 2,451 ,650 $ . $ .
Hard Cost Continge ncy ( 1 0%) $ 2,03 1,650 $ -$ -$ -
Soft Cost Co ntingency (20 %) $ 420 ,000 $ -$ -$ -
Tota l Development Costs $ 36 ,883 ,975 $ 21 ,187 ,451 $ 10 ,604 ,987 $ 5,091 ,537
Percentages ofT otal Project
Costs by Caegor 100% 57.43 % 28.75% 13.80 %
*All amounts are estimates and subject to cha nge as actual costs are incu rred and
incentives rece ived. TIF and CID reimburseab le project costs are not limited by
categories set forth in the worksheet above , and all TIF and CID reimburseable project
costs shall re imbursed pursuant to a mu t ually acceptable development agreement
between the Develope r, City , and CID , all purs uant to , and in comp liance with , t he CID
Act and TI F Act , as app licab le. Reimbursable project costs for TIF and CID are Net
Present Valued assuming 7.5% discourt rate and based on reimbursement to Developer
on an as -collected basis
**Includes $5,091 ,537 in revenue from the proposed CI D 1% Sa les Tax , which is
contingen t upo n creation of the CI D and imposition of the CID Sales Ta x
F-1
t
l
t
t
t
l
L
l
t
t
t
t , . ..
t
t
Source
TIF
CID
Central Bank
FHC/Developer
EXHIBITG
SOURCE OF FUNDS FOR ALL ESTIMATED
REDEVELOPMENT PROJECT COSTS
Amount Term Status Contact Person
$10,604,987 23 Years Pending n/a
$5,091,537 40 Years Pending nla
$10,187,451 TBD Committed Bud Peck, SVP
$11,000,000 TBD Committed Kirk Fanner
Contact Tele12hone
n/a
n/a
573.634.1311
573.635.2255
*TIF and CID revenues are Net Present Valued at 7.5% and based on reimbursement of
Developer on an as-collected basis. Also, allocation of sources of funds between Central Bank
and FHC/Developer are based on preliminary estimates and may not reflect the ultimate level of
funding provided by each entity. Collectively, however, the Developer anticipates that these
sources will be sufficient to complete the Project.
42411005.12
:::c:
I .......
oc~ 11 If · I i i ~ II ~~~~ II
lr lr
rnrn l ~
I ~ ~ I ~ I ~ l ~l i II ~ l ~l ~l i I ~
~ llll!il ili l i l ~l i l ~ I ~ liJ i l ~l i I ~
EX HIBIT H
ESTIMATED ANNUAL INCREASES J N ASSESSED VALUE AND RESUL TJNG PAYMENTS JN LIEU OF TAXES AND
ECONOMIC ACTIVITY TAXES OVER LIFE OF PROJ ECT
_ ........... ('~·l1•"11. ... " .... "'""""'. '"'"""'"""'"'
1-1-1
4241100~ 12
oL•l•I 4.,.,,.,,....,_.,.,,.P"'.,,.,,. .,,.....,.,..,.....,rl
1l111o-ll.t'f\ ... :.....,~, .......... "''· ................ 1-\;o• ,., ................ _
~--... -.,. ....... ~\ ........... ,... ..
,,, ........ \-···-· .... --............... ,....,_...
141,. .. -............. J. ,... .... _........,_..,.,\ ........... .
,.,'Ya .. ·~··-......... "-•r-, ...... ,,._,,., .... _ .. ..... ,.,, .... , .• ~~· .. '" .•. ,.o~,...,....,.., ..... ~ _ .. n~
-,.,
EXHIBIT I
EVIDENCE OF COMMITMENT TO FINANCE
See Attached .
1-I
42 411005 .12
FHC
FARME R H OLDI NG COMPANY
Wednesday, September 04, 2013
City of Jefferson, Missouri
Attn: Drew Hilpert, City Counselor
320 E. McCarty Street
Jefferson City, MO 651 01
Re: Capital Mall Redevelopment -Letter of Interest to Fund
Dear Drew :
The purpose of this letter is to display our interest to assist in the redevelopment of the
Capital Mall in Jefferson City, Missouri (the "Project") by providing financing to Cap ital Mall
JC, LLC. With the assistance of Tax Increment Financing and Community Improvement District
funding, we intend to fully support and finance the Project.
Farmer Holding Company, LLC's interest and ab ility to fund the Project is further subject
to the following conditions:
1) Final approval by applicable governing authorities for Tax Increment Financing
and Community Improvement District financing in connection with the Project;
2) A satisfactory debt financing commitment and execution of loan documents; and
3) A full and satisfactory review of all financial and development data, including the
development plan and schedule, in connection with the Project and borrower.
We are excited about the opportunities available to the Jefferson City community from
this Project and will support this Project in every way feasible . Although this letter should not be
construed as an absolute commitment to fund this Project, we fully intend to support this Project
by filling any financing gap or providing any additional financing to bring the Project to fruition .
If you should have any further questions, please do not hesitate to contact me.
Sincerely, ~
l?t-bud Fanner
Farmer Holding Company, LLC
221 Bolivar Street, Suite 400
Jefferson City, Missouri 65101
(Ph) 573 .635.2255
1
August 1, 2013
Mr. Rob Kingsbury
P.O. Box 104960
Jefferson City, MO. 65102
Central Bank e
RE: Jefferson Ci ty Capital Mall Development
Dear Mr. King sbury:
It is the understanding of Central Bank tha t Capital Mall JC, LLC is applying
to participate in the "Tax Increment Financing" (TIF)· and "Community
Investment District" (CID) financing programs. If these applications are
approved, the TIF and CID programs would-significantly benefit the Capital
Mall development in assisting to fund costs incurred with redevelopment
efforts. The Capital Mall development is an important economic base for
Jefferson City and its surrounding area and .provides needed public use
facilities. The TIF and CID programs are vital ingredients in Capital Mall
JC, LLC's goals of retaining and creat i ng new jobs, providing additional
capital investment , increasing tax revenues and maintaining and improving the
Capital Mall development as a viable economic base for the citizens of
central Missouri.
In the past, Central Bank has fulfilled the f i nanc i al requirements o f Capital
Mall JC, LLC and related entities. Credit has previously been provided to
these parties for projects such as these and Central Bank is committed to
continue to support their financial needs contingent upon a favorable
analysis of each request. Cap i tal Mall JC, LLC h as the capacity to obtain
financing for the portion of the redevelopment that requires conventional
financing and Central Bank is capable of providing the credit necessary for
Capital Mall JC , LLC to engage in this activity as assets of the bank exceed
one billion dollars.
Capital Mall J C, LL C is a customer· that is held in h~gh regard and Central
Bank looks forward to assisting this entity with its future financial
requ irements. With the involvement of the various funding sources, the
i mprovements at the Capital Mall development will benefit our community,
region and state. Central Bank supports the endeavors of Capital Mall JC,
LLC with this project . Thank you.
Truly yours,
6~~
Bud Peck
Senior Vice President
NMLS -525966
Ctlllral Bank, 238 MIIJisonStmt,jeffirson City, Mim11ri 6510 1, 5731634·1234
Mtmber Cmm•l B"nromp11ny
Source
TIF
ClD
Ce ntral Bank
FHC /Developer
EXHIBIT J
SOURCE OF FUNDS FOR ALL ESTIMATED
REDEVELOPMENT PROJECT COSTS
Amount Term Status Contact Person
$10 ,604 ,987 23 Years Pending n/a
$5,09 1,5 37 40 Years Pending n/a
$10 ,187 ,45 1 TBD Co mmitted Bud Peck , SVP
$11 ,000 ,000 TBD Co mmitted Kirk Farmer
Contact TeleQhone
n/a
n/a
573.634 .1311
573.635.2255
*T IF and CID revenues are Ne t Present Valued at 7 .5% and ba sed on reimbursement of
Developer on an as-co llected basis . Also , allocation of so urces of funds between Central Bank
and FHC/Deve loper are based on preliminary estimate s and may not reflect the ultimate level of
funding provided by each enti ty. Co ll ective ly, however , th e Developer anticipates that these
so urces will be suffic ient to complete the Project.
42411005 .12
I
I
EX HIBIT J
COST BENE FIT ANALYSIS, EC ONOMIC IMPA CT ANALYSIS AND FISCAL IMPA CT ANALYSIS
INCREASE D TAX REVENU E VERSUS TH E VALUE OF TI-l E INCENTIVES PROV ID ED (BY A FFEC TED TA XING
JURISD ICT ION):
This spreadshee t depi cts (on the left ) the total incentives provid ed by affec ted taxi ng jurisd ic tions, and it is compared to the potential
inc rease d tax revenue to those juri sdiction , fro m all source s and ne t o f TIF redirected reve nu e, fr om the Redeve lopment Projec t (on
th e right) over a 27 yea r period . Please note tha t thi s ana lysis doe s not inclu de the bene fit to the State of Mi sso uri from th e Projec t,
and it is intended to add ress the City's internal po li cy th at ask s for a co mparison of pote ntial increased reve nu e, fro m all so urces, to
the value of the incent ives prov ided. It inclu des onl y revenue from the Redevelopme nt Area, and doe s not in c lude additiona l reve nu e
fro m sp in-off developmen ts. ., " -968 126-'08 <21.6" 1 .'71 23.0>1 !.12> UP.> 667 "'·"' "I ·61.1 16
llo<,4>9 >1; I I
>; ... ·"' "·"' ....... • '" ,,. '·'"' "'' .. ., ... ., ,.,,,. .. , .... ~,
1.119 19 . • . .
2>9.' .. • "'''" ""·"'' "·'" ·~" '· 391.>11 48<.1799.'
I ,., I
I
I .... .,..,
I 6.996 ·'·"' "'·'" ><J.~
""' I I I ,\120 D.%67>
I I '·'" '''·""' "''.106 " ,. I
166,408 I 119 8.'
" I . .......
I l.m "'·''"' ,,..,1136 " I ,
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"· ,. """"' U9.01W "·"8 ,,16) '" '"'·"' 1,09
" I
I
'10l,700
J-1
EXH IBIT J
PARCEL AND TAX DATA ASSUMPT IONS:
The below in fo rmation sets fort h the a~sumpt i ons re la ted to the valu ati on o f Cap ita l Mall and economic ac tivi ty (i.e., sale s) wit hin the
Redevelopme nt Area, in cluding the effect o f the Redevel opm ent Projec t on the assesse d va lu e of the improvements and sales at the
busin esses located wi thin the Red eve lopment Area. The se ass umptio ns al so incl ud e the ta x rates, by jurisdiction , and various valuation
assump tio ns over the life of the Redev elo pment Project fo r purpo ses of calc ul ating va ri ous components of the cost/be nefit and tax
impa ct analysis.
4 2411005 12
' ·~ "
-~ .. ..,
... ,....,..,-.;>_ J' ... -,.,..,,...,. • .,.oot total'o ., ........ ~ ....... ,,,..,..~' .,..,,.,l<>o•""'-'"'ur'·"""' (o• •-" _, .. ,
,... ...... ,_ot,l •l<>oto_....,
'llll•..,aiDo••u,......, 1•• ,; .......................... !!._ .... .
JIOo• ....... ,.._., .... , .. , ...... .._ :;:~!.::;~::: .. ":'.:.":~:""'' ... 01 J::.'
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,tl ...... -......... , .......... _ •.I~ ....• , .... _ .................. ~ ... ,. .... ~ ....... ~ ........ ~,. ... , •• _,
(ll ~•",..J'•~ ''""'""-"''""'·UI'I"'""'' Jl>.
J-2
EXH IBIT J
ECONO MIC IMPACT: REAL PROPERTY VALUES AND ECONOM IC ACTIV ITY WIT HIN REDEVELOPMENT AREA
T he chart below sets forth the projected econo m ic impact of the Project on propert y values and sales in t he Redevelo pment Area with
and wit hout the Redeve lopme nt Project.
J-3
4241 1005 12
I
I
EXHIBIT J
ECONOM IC IM PAC T: PERSONAL PR OPERTY VALUE AN D AS SESSE D VALUE (OVE R 27 YEAR S):
Th e chart bel ow sets for th e proj ect ed marke t va lue (l eft side ) and assessed va lu e (ri ght s id e) of all perso nal property wit hin the
Redeve lopme nt Area over a per iod of 27 ye ars . Please no te three items: (I) the "Base " co lumn dep icts the growth in persona l property
taxes ass um ing curren t gro v.1h, (2 ) the .. Add Year (2 )'" thru th e "A dd (Year 5)" co lum ns show the effect of decrease d vac an cy and
build-ou t o f the curren tl y vacant pad-site s in the Redev elopm ent Area, an d (3) the va lues wit hin the ·Total w/out Project'" co lum n are
based on separate assu mp tion s id ent ifi ed above (i.e., lon ge r rep laceme nt ti me pe ri od and lower rep lacement rate).
J-4
4241100512
EXHIBIT J
FISCAL IMPACT: AD VALOREM TAXES RE DIR ECTE D BY T IF (BY AFFECTED TAX
J URI SDI CTION)
The chart be low sets fo rth th e ad va lo rem/rea l estate taxes red irec t by TJF by each tax
j uri sdi cti on affec ted, in c lud ing th e annu al total for a ll tax in g j uri sd ic ti ons, over the 23-year T IF
term .
h ·ar (;l'lll'mlf{l'\l'IIUl' Sdmul l{u:ul &. B tidgl' Libml) SJll'l'ial Sl'" in·~ ( it~ H>l \1.
I $ 4 86 $ 16 ,320 $ 1,198 $ 88 1 $ 396 $ 2,468 $ 21 ,750
2 $ 83 4 $ 27 ,973 $ 2,054 $ 1,509 $ 679 $ 4,23 1 $ 3 7,281
3 $ 1,188 $ 39,860 $ 2,927 $ 2,15 1 $ 968 $ 6,028 $ 53,122
4 $ 1,549 $ 51 ,984 $ 3,817 $ 2,805 $ 1,262 $ 7,862 $ 69,280
5 $ 1,9 18 $ 64 ,350 $ 4.725 $ 3,472 $ 1,563 $ 9,732 $ 85,761
6 $ 2 ,145 $ 71,960 $ 5.284 $ 3,883 $ 1,748 $ 10,883 $ 95,902
7 $ 2 ,376 $ 79 ,72 1 $ 5,854 $ 4,302 $ 1,936 $ 12,057 $ 106,246
8 $ 2 ,6 12 $ 87 ,638 $ 6,435 $ 4.729 $ 2,128 $ 13,254 $ 11 6,797
9 $ 2,853 $ 95,7 13 $ 7.028 $ 5,164 $ 2 ,325 $ 14.475 $ 12 7,559
10 $ 3,098 $ 103 ,950 $ 7,633 $ 5.609 $ 2.525 $ 15,72 1 $ 138,536
II $ 3,349 $ 11 2,35 1 $ 8,250 $ 6,062 $ 2,729 $ 16,992 $ 149,732
12 $ 3,604 $ 120,92 1 $ 8,879 $ 6,525 $ 2,937 $ 18,288 $ 161 ,153
13 $ 3,865 $ 129,66 1 $ 9,52 1 $ 6,996 $ 3,149 $ 19,6 10 $ 172 ,802
14 $ 4 ,13 1 $ 138 ,577 $ 10,176 $ 7 ,477 $ 3,365 $ 20,958 $ 184,684
15 $ 4,402 $ 14 7,67 1 $ 10,843 $ 7 ,968 $ 3,586 $ 22 ,333 $ 196,804
16 $ 4,678 $ 156,947 $ 11 ,525 $ 8,468 $ 3,8 12 $ 23,736 $ 209,166
17 $ 4,960 $ 166,408 $ 12,2 19 $ 8,979 $ 4,04 1 $ 25 ,167 $ 221 ,77 5
18 $ 5,248 $ 176 ,059 $ 12,928 $ 9 ,500 $ 4 ,276 $ 26.627 $ 234,636
19 $ 5,54 1 $ 185 ,902 $ 13 ,65 I $ 10.03 1 $ 4 ,515 $ 28 ,11 5 $ 247,755
20 $ 5,840 $ 195 ,942 $ 14.388 $ 10,572 $ 4 ,759 $ 29,634 $ 26 1,136
21 $ 6,146 $ 206,184 $ 15,140 $ 11.1 25 $ 5.007 $ 31,183 $ 274,784
22 $ 6,457 $ 2 16.630 $ 15.907 $ 11,689 $ 5,26 1 $ 32,763 $ 288,706
23 $ 6,775 $ 227,285 $ 16 ,689 $ 12 ,264 $ 5,520 $ 34.374 $ 302,906
T OTAL $ 84,056 $ 2,8 20,00 7 $ 207 ,07 1 $ 152,159 $ 68,487 $ 426,49 1 $3,758,2 70
N PV $ 30,499 $ 1,023,203 $ 75,133 $ 55,209 $ 24 ,850 $ 154,747 $1,363,640
J-5
42411005 12
EXHIBIT J
FISCAL IMP ACT: ECONOM IC ACT IVITY TAXES (I.E ., SALES TAX) REDIRE CTED BY
TIF (BY AFFECTED TAX ING JURISDICTION)
The chart below sets forth the Ci ty and Count y sale s tax revenues that a re redirected by TIF over
the 23-year TIF term.
\'car Ci~· Coun~· em TOTAL
1 $ 34,966 $ 26,224 $ 378,9 14 $ 440,105
2 $ 77,510 $ 58,132 $ 400,18 6 $ 535,829
3 $ 120,479 $ 90,360 $ 421 ,671 $ 632,510
4 $ 163 ,879 $ 122,909 $ 443 ,37 1 $ 730,159
5 $ 207,712 $ 155 ,784 $ 465,287 $ 828,783
6 $ 2 17,018 $ 162,763 $ 469,940 $ 849,721
7 $ 226,4 16 $ 169 ,812 $ 474 ,6 40 $ 870,869
8 $ 235,909 $ 17 6 ,932 $ 479,386 $ 892,227
9 $ 245,497 $ 184 ,123 $ 484 ,180 $ 913,800
10 $ 255,18 1 $ 19 1,3 85 $ 489,022 $ 935,588
11 $ 264,96 1 $ 198 ,72 1 $ 493 ,9 12 $ 957,594
12 $ 274 ,839 $ 206,129 $ 498 ,851 $ 979,820
13 $ 284 ,816 $ 2 13,6 12 $ 503,840 $ 1,002,268
14 $ 294 ,893 $ 22 1,170 $ 508,878 $ 1,024,941
15 $ 3 05 ,071 $ 228,803 $ 5 13,967 $ 1,047,840
16 $ 315 ,3 50 $ 236 ,512 $ 5 19 ,106 $ 1,070,969
17 $ 325,732 $ 244,299 $ 524,297 $ 1,094,329
18 $ 336,218 $ 252 ,164 $ 529,540 $ 1,117,922
19 $ 346,809 $ 26 0 , I 07 $ 534,836 $ 1,141 ,751
20 $ 357,506 $ 268,129 $ 540,184 $ 1,165,819
21 $ 368,309 $ 276,232 $ 545,586 $ 1,190,127
22 $ 379,221 $ 284,41 6 $ 55 1,042 $ 1,214,679
23 $ 390,242 $ 292 ,681 $ 556,552 $ 1,239,476
TOTAL $ 6,028,534 $ 4 ,521,400 $ 11,327,190 $ 21,877,124
NPV $ 2,371,320 $ 1,77 8,490 $ 5,091,53 7 $ 9,241,347
J-6
42411005 .12
EXHIBIT J
COST/BENEF IT ANALYS IS:
Th is chart show s ne t taxes (afte r TI F) by tax type with th e Redeve lopme nt Project and taxe s withou t the Redevelopment Project ove r a
27 yea r period . The far right co lu mn shows the net benefi t (in terms of net tax revenue to all taxing juri sd ictions) from the
Red eve lopment Proj ect after TI F assistance (i.e .. cost). In oth er words. th is chart shows the taxes ge nera ted wit h the Project/with TIF
a fter reducin g th ose reve nu es by th e amount redirected by TIF and co mpares th at re ven ue to the projected tax revenue from the
Redevelopment Area wi thout the Project/wit hout TIF . The net benefit (i.e .. ad diti onal tax revenue) is approximate ly $73 Million in
real te rm s and approxi mately $23 Milli on in pre se nt va lue te rm s.
J-7
42411 005 12
EXHIBIT J
COS T/BENE FIT ANALYSIS: TAXES (REAL AND PRES EN T VALUE ) BY JURISDI CT IO N
AND TAX TYP E
The charts below provid es a more individualized breakdown of the chart above. And it shows the
net ben efit (after TIF) from the Redevelopment Project by taxing jurisdiction and by source of
Tax Revenue over th e same 27-year period . The final chart provides the Red e velopment
Proj ect 's total bene fit (in term s of additional tax revenue) to each tax ing jurisdiction.
l!t·all'mpt•J1\ '\I'\ I a"'"'ith Ill '\I'\ In \l'' mthuut '\I'\ Br ndit ul lutal ln\l'' mth Ill I utnl In"'' lutal Bt·m·fit
'Ill ('II I'I11Jl'l f) Ill mtlwut Ill trum Ill
I Sta te $ 44 757 $ 32 270 $ 12 487 $ 115 362 $ 74 602 $ 40 759
2 General Reve noc $ 194 ,5 19 $ 162 ,241 $ 32 ,279 $ 495,930 $ 375 ,067 $ 120,863
3 Sclx>ol $ 4,178 ,622 $ 3,750,583 $ 428,039 $ 10,587,735 $ 8 ,670 ,563 $ 1,917 ,172
4 Road and Brid ge $ 342,573 $ 301 ,17 1 $ 4 1,40 1 $ 869,569 $ 696,245 $ 173 ,324
5 Library $ 207,357 $ 189,3 14 $ 18,044 $ 52 4,607 $ 437,653 $ 86,954
6 Specal Services $ 110,369 $ 97,494 $ 12,875 $ 280,040 $ 225,386 $ 54 ,653
7 City $ 732 ,15 5 $ 63 9,467 $ 92,687 $ I ,8 59,505 $ 1,478 ,315 $ 38 1,190
8 Add'! S urtax $ 21 ,20 1 $ 15,286 $ 5,9 15 $ 54,645 $ 35 ,338 $ 19,307
TOTALAVTAX $ 5,83 1,553 $ 5,187,82 7 $ 643,726 $ 14,787,391 $ 11 ,993,1 70 $ 2,7 94 ,22 1
:\I'\ lnu' 111thuut '\I'\ Ht• ndit uf I utnl I""'' lutal Bt•ndit l'~"un.1ll'n•p•·•1~ '\I'\ I a"'' 11ith Ill Ill '\ I' Ill I uta I lau' 11ith Ill \\llhuut Ill tnun Ill '( " 111Jl'lf)
I State $ 14 556 $ 8 430 $ ' 6 12 5 $ 35 I 2 $ 16 33 7 $ 18 804
2 Gereral Revent~: $ 73,180 $ 42,384 $ 30,796 $ 176,676 $ 82 ,135 $ 94 ,540
3 Sclx>ol $ 1,691 ,74 1 $ 979,818 $ 7 11 ,923 $ 4 ,08 4,286 $ I ,898 , 758 $ 2,185 ,528
4 Road and Bridge $ 135 ,847 $ 78,679 $ 57,167 $ 327,968 $ 152 ,470 $ 17 5,498
5 Lib rary $ 85,392 $ 49,457 $ 35,935 $ 206,15 7 $ 95,84 1 $ 110,316
6 Specal Services $ 43,976 $ 25 ,47 0 $ 18,506 $ 106,169 $ 49 ,357 $ 56,812
7 City $ 288 ,439 $ I 67,057 $ 121 ,382 $ 696,363 $ 323,735 $ 372 ,628
8 Add '! Surtax $ 6,89 5 $ 3,993 $ 2,902 $ 16,646 $ 7,739 $ 8,9 07
TOTAL PPTAX $ 2,340,026 $ 1,355,289 $ 984,736 $ 5,649,40 7 $ 2,626,372 $ 3,023,034
'\I'\ In \l'' 111thuut '\I'\ Bt• ndit uf lutal I au' 11ith Ill I uta! ln\l'' lutal Bt·m·fit ~ail'' I :1\ '\I'\ I :nt'' 11ith Ill
'Ill ('\u l'rul"l'fl Ill \\lthuut Ill hum Ill
I State $ 46 080 984 $ 32 043 797 $ 14037187 $ I I 5 00 I 236 $ 72 582 806 $ 42 4 I 8 43 0
2 City $ I 9,442 ,163 $ 15 ,168,66 1 $ 4,273 ,502 $ 48 ,409,92 1 $ 34 ,358 ,725 $ 14 ,05 1,196
3 County $ 14,581 ,622 $ 11,376,496 $ 3,205 ,127 $ 36,307,44 1 $ 25 ,769,044 $ 10 ,538,397
4 CID $ 5,815 ,204 $ . $ 5,815 ,204 $ 15 ,892,038 $ -$ 15 ,892 ,038
TOTALSALESTAX $ 85,919 ,974 $ 58,588,954 $ 27,331,020 $ 215,6 10,636 $ 132 ,710,575 $ 82,900 ,061
J-8
42411 005 .12
EX HIBIT J
ECONOM IC IMPACT: AD VALOREM TAXE S GENERATED FROM REDEVELOPMENT PROJE CT OYER 27 YEAR S-LESS
TAXES REDIRE CTED BY TIF
A juri sdic tion-by-jurisdiction breakdown of the ad valorem/real propert y taxe s generated within the Redev e lopment Area over 27
years from the Redevelopment Project.
I s 3,09 9 s 15,094 s 34 3 ,855 $ 27,724 s 17,30 0 s 8 ,966 s 58 ,94 1 s 1,468 s 4 76 ,44 7
2 s 3,20 8 s 15,293 s 344 ,828 s 2 7 ,882 s 17 ,30 8 s 9,0 1 1 s 59,331 s 1,5 19 s 4 78,380
3 $ 3,31 8 s 15,495 s 34 5,81 9 s 2 8 .04 3 s 17 ,31 7 $ 9,057 s 59,729 s 1.572 s 480,352
4 s 3,43 1 s 15,702 s 34 6 ,83 1 s 28,20 8 s 17,326 s 9,104 s 6 0,135 s 1,625 s 482,3 63
5 $ 3,54 7 s 15,91 3 s 347,863 $ 28,375 s 17 ,335 s 9,152 $ 6 0.549 s 1,6 80 s 4 8 4 ,41 5
6 $ 3,618 s 16 ,043 s 348,4 9 8 s 28,4 79 $ 17,34 0 s 9,18 2 $ 60,804 s 1,7 14 s 485,6 77
7 $ 3,690 s 16 ,175 $ 349 ,14 5 $ 28 ,5 84 s 17,3 46 s 9 ,2 12 $ 6 1,0 64 $ 1,748 s 486,965
8 $ 3,764 s 16,311 s 349 ,806 s 28 ,69 1 $ 17 ,352 $ 9,2 43 $ 6 1,3 29 s 1,7 83 s 4 88,27 8
9 $ 3,839 s 16 ,448 s 350 ,4 7 9 s 2 8 ,80 1 s 17 ,35 8 s 9.274 $ 6 1,6 00 s 1,819 s 489,618
10 $ 3,9 16 s 16 ,5 89 s 35 1,16 7 $ 2 8,9 13 s 17 ,364 s 9,306 $ 6 1,8 75 s 1,8 55 s 4 90,9 84
II s 3,994 s 16.73 2 s 35 1,86 8 $ 2 9 ,027 $ 17 ,370 s 9,339 s 62 ,157 s 1,8 92 s 4 92,378
12 $ 4 ,074 s 16 ,878 s 352 ,58 3 $ 29,14 3 s 17 ,3 76 s 9,372 $ 62,444 s 1,9 30 s 4 93,799
13 s 4 ,156 s 17.0 27 s 353 ,3 12 s 2 9 ,262 s 17,382 s 9,4 0 6 s 62.736 s 1,968 s 4 95,24 9
14 s 4 ,239 s 17,180 s 354 ,0 56 $ 29,3 8 3 s 17 ,3 89 s 9 ,4 4 0 s 63 ,035 s 2 ,008 s 4 96,728
15 s 4 ,323 $ 17,335 s 354 ,8 15 s 2 9 ,506 s 17,39 5 s 9 ,475 s 63,339 $ 2 ,048 s 4 9 8 ,237
16 s 4.41 0 s 17,493 s 355,588 $ 29,632 s 17 ,402 s 9 ,5 11 s 63.650 $ 2,089 s 4 99,776
17 s 4 ,4 9 8 s 17,6 54 s 356,378 s 29,760 s 17,409 s 9 ,5 48 $ 63,967 s 2 ,131 s 50 1,34 6
18 s 4 ,588 s 17,81 9 s 357,183 s 29,89 1 $ 17,416 s 9 ,58 6 s 64 ,2 90 s 2,173 s 502,9 47
19 s 4 ,680 s 17,987 s 358,004 s 30,025 s 17,423 $ 9 ,624 s 64,620 s 2.2 17 s 504 ,580
20 s 4,773 s 18,158 s 358,842 s 30,16 1 s 17,43 1 s 9 ,663 s 64 ,956 s 2,261 s 506,2 4 5
2 1 s 4 ,869 s 18,333 s 359,697 s 30,3 00 s 17 ,43 8 s 9 ,7 02 s 6 5,2 99 $ 2,306 s 507,9 44
22 s 4 ,966 s 18,5 11 s 360,568 s 30,442 $ 17 ,446 s 9 ,74 3 s 6 5,649 s 2,352 s 509,677
23 $ 5,066 s 18 ,693 $ 361 ,4 57 s 30,58 7 s 17,4 54 s 9 ,784 s 66,0 05 s 2,4 00 s 5 11 ,44 5
24 $ 5,16 7 $ 25,977 $ 600 ,5 17 s 4 8 ,22 1 $ 3 0 ,3 12 s 15,61 0 s 102.3 8 7 s 2,447 s 830,6 3 8
25 $ 5,270 $ 2 6,496 s 61 2.527 s 4 9 ,18 6 s 30,9 18 s 15,9 22 s 104 ,435 s 2,4 96 s 847.25 1
26 $ 5,376 $ 2 7,0 26 $ 624 ,778 $ 50,170 s 3 1,536 s 16,241 $ 106,523 $ 2,546 s 864,19 6
27 $ 5,483 s 2 7 ,567 s 63 7,2 73 s 5 1,17 3 s 32,167 s 16,5 66 s 108,654 $ 2,597 s 88 1,4 80
TOTAL S 115,362 s 495,930 S I 0,587, 735 s 869,569 s 524,607 s 280,040 s 1,859,505 s 54,645 s 14,787,39 1
NPV s 44,757 s 194,5 19 s 4,178,622 s 342,573 s 207 ,357 s 110,369 s 732,155 s 2 1,201 s 5,831 ,553
J-9
42411005 12
I
EXH JB IT J
ECONOM IC IMP ACT: AD VALOREM TAXES GENERA TED W/OUT REDEVELOPMENT PROJE CT OVER 27 YEARS
Same as above , but the chart be low shows th e res ultin g ad valo rem tax revenu es to eac h taxing jurisdiction if the Redevel opm ent
Project is not undertaken .
lmll'l'l .... lUIL1-
I $ 2,947 $ 14,8 15 $ 342,494 $ 27 ,502 $ 17,288 $ 8,903 $ 58 ,395 $ 1,396 $ 473 ,739
2 $ 2.932 $ 14,74 1 $ 340 ,781 $ 27,365 $ 17,20 1 $ 8,858 $ 58 ,103 $ 1,389 $ 471,370
3 $ 2,917 $ 14 ,668 s 339 ,077 $ 27 ,228 $ 17,115 $ 8,814 $ 57,8 12 $ 1,382 s 469,0 14
4 $ 2,903 $ 14 ,59 4 $ 337,382 $ 27 ,092 $ 17,030 $ 8,770 $ 57,523 $ 1,375 $ 466 ,668
s $ 2,888 $ 14 ,52 1 $ 335 ,695 $ 26 ,956 $ 16,944 $ 8,726 $ 57,235 $ 1,368 $ 464,335
6 $ 2,874 $ 14 ,44 9 $ 334 ,017 $ 26 ,821 $ 16 ,860 $ 8,683 $ 56,949 $ 1,36 1 $ 462,0 13
7 $ 2,860 $ 14 ,376 $ 332 ,346 $ 26 ,687 $ 16 ,775 $ 8,639 $ 56,664 $ 1,355 $ 459,703
8 $ 2.845 $ 14 ,305 $ 330 ,685 $ 26 ,554 $ 16,692 $ 8,596 $ 56,381 $ 1,348 $ 457,405
9 $ 2,831 $ 14,233 $ 329 ,03 I $ 26 ,421 $ 16,608 $ 8,553 $ 56 ,099 $ 1,34 1 $ 455 ,1 18
10 $ 2,817 $ 14 ,162 $ 327 ,386 $ 26 ,289 $ 16,525 $ 8,510 $ 55 ,819 $ 1,33 4 $ 452 ,842
11 $ 2,803 $ 14,091 $ 325 ,749 $ 26 ,158 $ 16,442 $ 8,468 $ 55,540 $ 1,328 $ 450 ,578
12 $ 2,789 $ 14,021 $ 324 ,120 $ 26 ,027 $ 16,360 $ 8,425 $ 55 ,262 $ 1,321 $ 448 ,325
13 $ 2,775 $ 13 ,9 51 $ 322 ,500 $ 25 ,897 $ 16,278 $ 8,383 $ 54 ,986 $ 1,314 $ 446 ,08 4
14 $ 2,761 $ 13,881 $ 320,887 $ 25,767 $ 16,197 $ 8,341 $ 54,7 11 $ 1,308 $ 443,853
IS $ 2,747 $ 13 ,811 $ 3 I 9,283 $ 25 ,638 $ 16,116 $ 8,300 $ 54 ,437 $ 1,30 I $ 44 1,634
16 $ 2.733 $ 13,742 $ 317,68 6 $ 25,510 $ 16,035 $ 8,258 $ 54 ,165 $ 1,295 $ 439 ,426
17 $ 2,720 $ 13 ,674 $ 316,098 $ 25,383 $ 15,955 $ 8,217 $ 53 ,894 $ 1,288 $ 437 ,229
18 $ 2,706 $ 13,605 $ 31 4,518 $ 25 ,256 $ 15 ,876 $ 8,176 $ 53 ,625 $ 1,282 $ 435 ,042
19 $ 2,693 $ 13,537 $ 3 12 ,94 5 $ 25,129 $ 15 ,796 $ 8,135 $ 53 ,357 $ 1,275 $ 432,867
20 $ 2,679 $ 13,470 $ 311 ,38 0 $ 25 ,004 $ 15 ,717 $ 8,094 $ 53 ,090 $ 1,269 $ 430 ,703
21 $ 2,666 $ 13,402 $ 309,823 $ 24,879 $ 15 .639 $ 8,054 $ 52 ,824 $ 1,263 $ 428 ,549
22 $ 2,652 $ 13,335 $ 308,274 $ 24,754 $ 15,560 $ 8,013 $ 52,560 $ 1,256 $ 426 ,407
23 $ 2,639 $ 13,268 $ 306,7 33 $ 24,63 1 $ 15 ,483 $ 7,973 $ 52,297 $ 1,250 $ 424 ,275
24 $ 2,626 $ 13,202 $ 30 5,199 $ 24,507 $ 15,405 $ 7,933 $ 52,036 $ 1,244 $ 422 ,153
25 $ 2,613 $ 13,136 $ 303 ,673 s 24,385 $ 15,328 $ 7,894 $ 51,776 $ I ,238 $ 420 ,042
26 $ 2,600 $ 13,070 $ 302 ,155 $ 24,263 $ 15,25 1 $ 7,854 $ 51,517 $ 1,231 $ 41 7,942
27 $ 2,587 $ 13 ,005 $ 300 ,644 $ 24 ,142 $ 15.175 $ 7,815 $ 51,259 $ 1,225 $ 415,853
TOTAL$ 74,602 $ 375,067 $ 8,670,563 s 696,245 $ 43 7,653 $ 225,386 s 1,478,315 $ 35,338 $ 11 ,993,170
NPV s 32 ,270 $ 162,241 $ 3,750,583 $ 30t ,171 s 189,314 $ 97,494 $ 639,467 s 15,286 $ 5,187,827
J-10
4 24 11 005,12
I
EXHIBIT J
ECONOM IC 1M PACT : PERSONAL PROPERTY TAXES GENE RATE D FROM RE DEV ELO PMENT PROJEC T OVER 27
YEARS -LESS TAXES REDIRECTED BY TIF
A juri sd iction -by-ju ri sdictio n breakdown of the perso nal pro perty taxes ge nerated wit hi n the Redeve lop ment Area over 27 years from
the Red evelopment Project.
I $ 1,634 $ 8,214 $ 189,876 s 15,247 s 9,584 s 4,936 $ 32 ,373 s 774 $ 262 ,6 37
2 $ 1,476 $ 7,420 $ 171 ,536 $ 13,774 s 8,658 $ 4,459 s 29 ,246 $ 699 $ 237 ,269
3 $ 1,307 $ 6,573 $ 15 1,94 0 $ 12 ,201 $ 7,669 $ 3,95 0 $ 25 ,906 $ 619 $ 210 ,165
4 $ 1,128 s 5,67 1 $ 13 1,090 $ 10 ,527 s 6,617 $ 3,408 $ 22,35 1 $ 534 $ 181 ,325
s $ 938 $ 4,71 4 s 108,985 $ 8,751 $ 5,501 $ 2,833 $ 18,582 $ 444 $ 150 ,748
6 $ 66 1 s 3,324 $ 76,840 $ 6,170 $ 3 ,879 $ 1,997 $ 13,101 $ 313 $ 106,285
7 $ 385 s 1,9 33 s 44 ,695 $ 3,5 89 $ 2 ,256 $ 1,162 $ 7,620 s 182 $ 6 1,822
8 $ 1,905 s 9,578 $ 221 ,413 $ 17,779 $ 11 ,176 $ 5,756 $ 37,75 1 $ 902 s 306,260
9 $ 1,688 $ 8,488 s 196,2 19 $ 15 ,756 $ 9 ,904 $ 5,10 1 $ 33,455 $ 800 $ 271 ,411
10 $ 1,470 $ 7,393 $ 170,899 $ 13,723 $ 8 ,626 $ 4,442 $ 29,138 $ 697 s 23 6 ,389
II $ I ,252 $ 6,292 $ 145 ,454 $ 11 ,680 $ 7 ,3 42 $ 3,78 1 $ 24,800 $ 593 s 201 ,193
12 $ 1,031 $ 5,186 $ 11 9 ,883 $ 9,627 $ 6 ,05 1 $ 3,116 $ 20 ,440 $ 489 $ 165 ,823
13 $ 727 $ 3,6 56 $ 84 ,524 $ 6,787 s 4 ,266 $ 2,197 s 14 ,41 I $ 344 $ 116 ,9 14
14 $ 423 $ 2,127 $ 49,164 $ 3,948 $ 2 ,482 $ 1,278 $ 8,382 $ 200 $ 68 ,004
IS $ 2,096 $ 10,536 $ 243 ,554 $ 19,557 s 12 ,294 $ 6,33 1 s 4 1,526 $ 993 $ 33 6,886
16 $ 1,857 $ 9,337 $ 2 15,841 $ 17,332 $ 10,895 $ 5,6 11 $ 36,800 $ 880 $ 298,552
17 s 1,61 7 $ 8,132 $ 187 ,98 9 $ 15,09 6 s 9 ,489 s 4,887 s 32 ,052 $ 766 $ 260 ,028
18 s 1,377 $ 6,92 1 $ 159 ,999 $ 12,848 s 8 ,076 $ 4,159 $ 27 ,280 $ 652 s 22 1,3 12
19 s 1,135 $ 5,704 $ 131 ,872 $ 10,58 9 s 6 ,656 $ 3,428 $ 22 ,484 $ 537 $ 182,406
20 s 800 $ 4 ,022 $ 92,976 $ 7,466 $ 4 ,693 $ 2,41 7 $ 15,852 $ 379 $ 128,605
21 $ 465 $ 2,339 $ 54,08 1 $ 4,343 s 2.730 $ 1,406 $ 9,22 1 $ 22 0 $ 74,805
22 $ 2 ,305 $ 11,589 $ 267,9 10 $ 21 ,513 $ 13 ,523 $ 6,964 $ 45 ,678 $ 1,092 $ 370 ,574
23 s 2 ,04 3 $ 10,27 0 $ 237,425 $ 19,065 $ 11,984 $ 6,172 $ 40,481 $ 968 $ 328,407
24 $ 1,779 $ 8,945 $ 206 ,788 $ 16,605 $ 10 ,438 $ 5,375 $ 35 ,257 $ 843 $ 286 ,030
2S $ 1,5 14 $ 7,6 13 $ 175,999 $ 14,133 $ 8 ,884 $ 4,575 $ 30,008 s 7 17 $ 243,443
26 $ 1,248 $ 6,275 $ 145 ,059 $ 11 ,64 8 $ 7,322 s 3,771 $ 24 ,732 $ 59 1 $ 200,6 46
27 $ 880 $ 4 ,424 $ 102 ,274 $ 8,213 $ 5,162 $ 2,6 59 $ 17,438 $ 41 7 $ 14 1,466
TOTAl S 3S,I 42 s 176,676 s 4,084 ,286 s 32 7,968 s 206,157 $ 106,169 s 696,363 s 16,646 s S,649,407
NPV s 14 .~56 s 73,180 $ 1,69 1,741 $ 13S,847 s 8 S,392 $ 43,976 s 288,439 $ 6,895 s 2,340,02 6
J-11
4241100 ) 12
EXH IBIT J
ECONO MIC IMPA CT: PERSONAL PROPERTY TAXES GENERATED W/OU T REDEV ELOPMENT PROJ ECT OVER 27
YEARS
Same as above, but the chart be low shows th e re sultin g person al property ta x revenues to each taxin g jurisdi ct io n if the
Redevelop men t Proj ect is no t und ertaken .
I $ 1,63 4 $ 8,2 14 $ 189,876 $ 15,247 s 9,584 $ 4,936 s 32 ,373 s 774 s 262,637
2 $ 1,4 00 $ 7,040 s 162,75 1 $ 13,069 $ 8,215 s 4,231 $ 27,749 $ 663 $ 225 ,11 8
3 $ 1,167 $ 5,867 s 135,626 $ 10,891 $ 6,846 s 3,526 $ 23 ,124 $ 553 s 187,598
4 $ 93 4 $ 4,693 $ 108,500 $ 8,7 13 s 5,477 s 2.820 $ 18,499 $ 442 $ 150,078
5 $ 700 $ 3,520 s 81,375 $ 6,534 $ 4,107 s 2,11 5 $ 13 ,874 $ 332 s I 12 ,559
6 $ 467 $ 2,347 s 54 ,250 $ 4,356 $ 2,738 s 1,4 10 $ 9,25 0 $ 22 1 $ 75,039
7 $ 233 $ 1,173 s 27 ,125 $ 2,178 s 1,369 s 705 $ 4,625 $ Il l $ 37 ,520
8 $ 233 $ 1,173 $ 27 ,125 $ 2,178 $ 1,369 $ 705 $ 4,625 $ Il l s 37 ,520
9 $ 233 $ 1,17 3 s 27 ,125 $ 2,178 $ 1,369 $ 705 $ 4,62 5 $ Ill s 37 ,520
10 $ 233 $ 1,173 s 27 ,125 $ 2,178 $ 1,369 $ 705 $ 4,625 $ Ill $ 37,520
II $ 1,225 $ 6,160 s 142 ,407 $ 11 ,435 $ 7,188 $ 3,702 $ 24 ,280 $ 580 $ 196 ,978
12 $ 1,050 $ 5,280 $ 122 ,063 s 9,802 s 6,161 $ 3,173 $ 20.8 12 $ 497 $ 168 ,838
13 $ 875 $ 4,400 $ 101 ,719 $ 8,168 $ 5.134 $ 2,644 $ 17,343 $ 415 s 140 ,699
14 $ 700 $ 3,520 s 81 ,375 $ 6,534 $ 4,107 s 2,11 5 $ 13 ,874 $ 332 s 112 ,559
15 $ 525 $ 2,640 $ 61,032 $ 4,901 $ 3,08 1 $ 1,586 $ 10,406 $ 249 $ 84 ,41 9
16 $ 350 $ 1,760 s 40,688 s 3,2 67 $ 2,054 $ 1,058 $ 6 ,937 $ 166 $ 56,279
.17 $ 175 $ 880 s 20 ,344 s 1,63 4 $ 1,027 $ 529 $ 3,469 $ 83 s 28,14 0
18 $ 175 $ 880 $ 20 ,344 $ 1,634 $ 1,027 $ 529 $ 3,469 $ 83 s 28,140
19 $ 175 $ 880 s 20,344 $ 1,63 4 $ 1.027 $ 529 $ 3,4 69 $ 83 s 28 ,140
20 $ 175 $ 880 $ 20,344 s 1,63 4 $ 1,027 s 529 $ 3,469 $ 83 s 28 ,140
21 $ 9 19 $ 4,620 s 106 ,80 5 $ 8,576 $ 5,3 91 s 2,776 $ 18,2 10 $ 435 $ 147 ,733
22 $ 788 $ 3,96 0 $ 91.547 $ 7,35 1 $ 4,62 1 $ 2,380 $ 15,609 $ 373 s 126,629
23 $ 656 $ 3,300 $ 76,289 s 6,126 s 3,85 1 $ 1,983 $ 13,007 s 3 11 s I 05 ,524
24 $ 525 $ 2.640 $ 61,032 $ 4,901 $ 3,081 s 1,586 $ 10,406 $ 24 9 $ 84,4 19
25 $ 394 $ 1,98 0 s 45 ,774 s 3,676 $ 2,310 $ 1,190 $ 7,804 $ 187 s 63 ,3 14
26 s 26 3 $ 1,320 $ 30,5 16 $ 2,450 s 1,540 $ 793 $ 5,203 $ 124 $ 42 ,210
27 $ 131 $ 660 $ 15,258 $ 1,225 s 770 $ 397 $ 2,60 1 $ 62 s 21 ,105
TOTA s 16 ,337 $ 82,135 s 1,898,7 58 s 152,470 s 95,84 1 s 49 ,357 s 323,735 s 7,7 39 s 2,626,372
NPV s 8,430 s 42,384 s 979,8 18 s 78,6 79 s 49,457 s 25,4 70 s 167 ,057 s 3,993 s 1,355,289
J -12
42411005.12
EX HIBI T J
ECONOMIC IMPA CT: SA LES TAXES GENERATE D FROM AND W/OUT REDEVELOPME NT PROJ ECT (BY
JURI SD ICTIO N) OVER 27 YEARS -LESS AMOUNTS REDIRECTED BY TIF.
J-13
4 24 11 00~.1 2
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EXHIBITK
DEVELOPER AFFIDAVIT
See Attached for Deve loper Affidavit.
K-1
424 11005 .12
STATE OF MISSOURI
COUNTY OF COLE
)
) ss
)
AFFIDAVIT
COMES NOW, Rob Kingsbury, and being first duly sworn, on his oath states :
I. 1 am over the age of eighteen ( 18) and competent to testify to the following matters of my
own knowledge and belief and am duly authorized to testify on behalf of Capital Mall JC,
LLC, a Missouri limited liability company.
~
2 . I am the ~~ cF r"H£ ~and am providing this Affidavit on behalf of
Capital Mall JC, LLC.
3. Capital Mall JC, LLC is the proposed developer for the Capital Mall Tax Increment
Financing Plan (the "TIF Plan") relating to the proposed Redevelopment Area, which
contains approximately 78 .26 acres , is generally located in Jefferson City, Missouri , at
the northeast comer of Highway 50 & S. Country Club Dr./W . Truman Blvd, and
commonly known as Capital Mall.
4. The conditions, which evidence the Redevelopment Area (as legally described in the TIF
Plan) as a blighted area, are detailed in the TlF Plan .
5. In my opinion, the Redevelopment Area on a whole is a "blighted area" as that tenn is
defined in the TIF Plan , and has not been subject to growth and development through
investment by private enterprise.
6. The Redevelopment Area would not reasonably be anticipated to be developed without
the adoption of tax increment financing due to the substantial cost to ameliorate the
blighted condition of the Redevelopment Area.
7. Capital Mall JC, LLC will not and could not reasonably be expected to develop the
Redevelopment Area without the adoption of the proposed TIF Plan .
8. To my knowledge the TIF Plan meets the requirements of Section 99.810 of the Real
Property Tax Increment Allocation Redevelopment Act, Revised Statutes of Missouri.
By:~
Subscrirt? to before me , a Notary Public , in and for said County and State this 5 ~
day of , 2013 .
My Commission Expiresill.i)1 t a :7.02.0 I sPrinted Na
SEAL " '
~59 1 6703.1
JEAN MACKNEY
Notary Public-Notary Seel
STATE OF MISSOURI
County of Cole
My Commission Expires 11/27/2015
Commission# 11500009
EXHIBIT L
DEVELOPMENT TEAM
Capital Mall JC. LLC (affiliate o(Farmer Holding Company): Developer/Ow ner
Farme r Holding Compa ny is a privately he ld , vertical ly inte grate d constructi on materials and
real estate company he adqu arte red in Jefferson Cit y, MO. Founded in 1972, the company has
750 emp loyees. Over it s 41 year hi story in real estate investment in Jefferson City, Farmer
Holdin g Company has invested or developed 1.75 million SF of office, indu strial , retail and
re sidenti a l space. Assisting Cap ital Mall JC, LLC with this redevel opment will be Kirk Farmer
and Rob Kingsbury .
Experience includ es:
• Office /Indu strial : Nu merous office/indu strial locat ions, ranging from Jefferson City,
Missouri to Springfield , Illin ois and including (a) 221 Bolivar Street. Class A Office
Building and (b) Mis so uri State Record s, Missouri State Office Building
• Stone Ridge Village : 2 13 acre retail and dining destination located on Missouri
Boulevard in Jefferson City (currently at Phase II of four-phase development).
• Boulevard Shoppe s : An 8, I 00 square foot retail center along Missouri Boulevard m
Jefferson Cit y, Missouri.
• Boulevard Ce nt er: An II ,52 0 square foot retail center that is located adjacent to
Boulevard Shoppes.
• Housing : 7 re side nti al housing projects cons isting of approximately 320 ,000 square feet
(325 units) financed through sta te and federal tax credits fo r co mp et itive and nuan ced
affordab le housing project s.
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42411005 .12
EXHIBITL
Central Missouri Professional Services, Inc.("CMPS"): Civil Engin eering
CM PS was found ed in 1969 and prov id es e ng ine e rin g, survey in g, geospati a l se rvices, an d
mate ri al testing . CM PS has been in volved in th e deve lopm ent of Jeffe rso n Ci ty and th e
surroundin g a rea for 41 yea rs and has participated in a maj ori t y of the project s th at hav e been a
part of the Jefferson C it y and surroundin g area growth durin g those yea r s. CMP S offe rs GPS and
conve nti onal meth ods of surv ey in g with four fully equipped survey crews to mee t it s c li ent 's
need s stat ew ide . CM PS offe rs comp lete engineering de s ign and draftin g servi ces, geos pati a l
services, and a complete materi a l testing lab o rato ry .
Ex perienc e includes:
• Walgreens
• Best Westem-Capitallnn
• Ca ndlew oo d S uit es Extended Stay
• Ho lida y In Ex press
• Kohl's
• Menard s
• Dick s Sporting Goo ds
• PetS mart
• Wildwo od Crossing
The CMPS Proj ect Mana ge r for thi s pr oject will be Pa ul Samson , PE. Paul ha s been wi th CMPS
for nea rl y I 0 yea rs, and pri or to joining C MP S, Pau l worked in MoDOT Ce ntral District for over
5 years. Paul 's wide range of de s ign experience will be an asse t to the proj ect team . He has
worked closely with the Develo pm ent Team o n seve ral re ce nt proj ec t s, in c ludin g: Stone rid ge
Village Shopping Ce nter a nd Walgreens, Truman Boulevard. Pa ul also ha s c lose work in g
re lati onships w ith city staff and loca l utilit y co mpa ni es.
Polsinelli PC ("Polsinelli"): Legal and Compliance
The Polsinelli Real Es tate group is stru ctured with a foc us on pro vi din g comprehensive
representati on t o it s clients as they nav iga te th e c hallen gi ng waters of rea l es tate t ransact ions
whether it inv olves the development or redevelopment of property o r the reutili zat io n of ex ist in g
facilities.
Ex perience includ es :
• Rede ve lopment of The Elm s Hote l a nd Spa , Excelsior Springs, Missouri
• C it y Po inte , Webb C it y, Missouri
• Valent Aerostructures Manufacturing Fac iliti es, Was hingt on, Mi sso uri
• Fre ighth ouse Flats , Co nd ominium Re dev e lopment, Kan sas C ity, Missouri
• Co rbin Park, Overland Park, Kansas
• Walmart TIF, Olathe Kansas
• Bass Pro TIF and TDD , Olathe, Kansas
• Santa Fe Plaza C ID , Dodge C it y, Kansas
• The Ga tewa y Redevel opm ent , Mi ss ion, Kansas
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424110 05 12
EXHIBITL
Leadi ng the lega l team from Pol s inelli is Korb W. Maxwell. Economic development projects
are the focus of Mr. Maxwell 's practice. Mr. Maxwell 's area of concentration is on large-scale
development and employment projects that utilize complex federal , state, and municipal
development incentives. His experience in working with municipalities and states in structuring
and implementing incentive packages provides him with insight and practical ex perience that
help s increase the likelihood of reaching a successful closing.
Mr. Maxwell has significant experience with tax increment financing , transportat io n
deve lo pment distric ts, community improvement districts, special benefit districts, real and
persona l property tax exemptions and numerou s federal and state tax credit program s.
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424 11005 .12
Sears
JC Penn ey
Dillard 's
Wil so n 's Total Fitness
Claire 's
CJ Bank s
Woodcrest
Buckle
Bath & Bo dy Works
Zales Jewe le rs
Pro Im age
Victoria 's Secret
Modern Nail s
US Po st Office
Subway
St ir Fry
Kay Jew e ler s
American Eagle Outfitters
Chri stoph er & Banks
Radi os hack
DEB
4 241 1005 .12
EXHIBITM
LIST OF TENANTS /OCCUPANTS
Pa y le ss Shoesource
Hibb en Sports
Jo-A nn Fabrics & Crafts
GNC
The Shoe Department
Kir lin 's Hallmark
Pretze l maker
Fuji Japan Steakhouse
Mastercuts Family Haircutters
JC Penney
Kitchen Co ll ecti on
Jeffe rso n C ity Police
Mr. Bulk Treats & Gift s
Ca melot Gifts
Th e Se nior Ce nter at th e Ma ll
Ca pita l Ca nd y
Cap ital 8 Theater
Ce ntra l Trust Bank
Pizza Hut
Hard ee 's Restaurant
Hy-Vee
Wendy's
M-1
EXHIBIT N
CAPITAL MALL TAX INCREMENT FINANCING PLAN
RELOCATION PLAN
The Cit y Co unci I of the Cit y of Jefferson, Mi sso ur i adopts thi s Relo ca ti on Plan as an ex hibit to
the Ca pital Mall Tax In crement Financing Plan as required-under Sectio n 523.20 5 of th e Revised
Statutes of Mi sso uri. Capitalized term s not otherwise defined in this Relo cat ion Plan shall hav e
th e meaning se t forth in the Plan .
1. Definitions. The following terms shall have the meanings set forth below for
purp oses ofthis Relocati on Plan .
1.1 Business. Any lawful activity that is co nd ucte d: (a) primarily for th e
purchase, sale or use of perso na l or real propert y or for the manufacture , process in g or
marketing of products or commodities; o r (b) primaril y for th e sa le of se rvices to the
public.
1.2 City. The Cit y of Jefferson, Mi sso uri .
1.3 Decent, Safe and Sa n itary Dwelling. A dwelling which me ets applicable
hou sin g and occ upanc y codes. The dw elling shall:
(a) Be stru cturall y so und, weathertight and in good repa ir ;
(b) Contain a safe electrica l wiring syste m ;
(c) Contain an adequate heatin g system;
(d) Be adequate in s ize with respect to the number of ro oms ne eded to
accommodate th e Di splaced Perso n; and
(e) For a Handicapped Di splaced Perso n, be free of any barriers which
wou ld prec lude rea so nable in gre ss, egress or use of th e dwe llin g.
1.4 Displaced Person. Any Perso n that moves from real property whi ch is
within the Red eve lopment Area or moves such Per so n's perso nal property fr om rea l
property which is within th e Redev e lop ment Area permanently and vo luntaril y as a dire ct
re su lt of acquisition, rehab ilitati on or dem o liti on of, or the written notice of intent to
ac quire , such rea l propert y, in whole o r in part, for a public purpose.
1.5 Eligible Displaced Person. Any Di sp laced Person who occ up ied the real
property to be acquired for not less than ninety (90) days pri or to the Initiati on of
Negotiations and wh o is required to vacate s uch rea l property for any rea so n other th an
the expiration of a lea se , ren ewa l of a lease or any ot her contractual requirem ent
contained within a lease.
N-1
4241 1005 12
EXHIBIT N
1.6 Handicapped Displaced Person. Any Disp laced Perso n who is deaf,
lega ll y blind or orth opedi ca ll y di sa bl ed to the extent that ac qui s ition of another re si dence
presents a greate r burden than other perso ns wo uld encounter o r to th e extent tha t
modifi cat ions to the re pl ace ment re side nce would be necessary .
1. 7 Initiation of Negotiations. The de livery of the initial written offer of just
compensat io n by th e acqu irin g entity , to the owner of the rea l property, to purchase suc h
real property for a Redeve lopm e nt Project, or th e notice to the Perso n that he wi ll be
disp laced by rehabi litation or demo liti on.
1.8 Perso n. Any individual , famil y, partn ers hip , corpo rat io n or assoc iati on.
1.9 Referral Site Notice. The written no tice of referral s ite s to be provided to
Displaced Person s by the Developer pursuant to Secti on 4 of th is Relocation Plan .
1.10 Relocation Payment. The pa yment to be mad e by th e De ve loper to an
E li g ibl e Displaced Person pur suant to Sec ti on 5 of this Rel ocati on Plan .
2. Eligibility. Any Di spla ced Pe rso n shall have th e right to receive relocation
ass istance in accordance with th e terms of this Rel ocati on Plan. In no event shall rel ocation
assista nce be provided to any Person who (i) purpose ly res ide s or loca te s s uch Person 's Business
in th e Redeve lopment Area so lely for th e purpose of o bta inin g rel ocat ion benefi ts or (i i) JS
reloc ated du e to an expiring lease , renewed lease or a co ntractual agreemen t to relocate .
3 . Notice. The Developer shall g iv e to eve ry Di splaced Person a ninety (9 0) day
written notice to vaca te, prior to the date such Disp lace d Perso n is required to vacate its
pre mi ses.
4 . Referrals. The Devel oper shall provide re s id e ntia l Displaced Persons with three
(3) Decent, Safe and San itary Dwelling referra ls and sha ll provide each displaced Business with
thre e (3) suitabl e referral s ite s. The Developer sha ll pr ov id e to each Handicapped Displaced
Person ninety (90) days prior written not ice o f referral s ite s and shall prov ide to each oth er
Di spl ace d Person s ixty (60) days prior wr itt en notice of referr al si tes, determined wit h referenc e
to the da te such Displaced Person is required to vacate its respecti ve premi ses . The Deve loper
sha ll make arrangements for t ranspo rtati on to in spec t referra l s ite s for Disp laced Pe rso ns up on a
written requ est for tran sportat ion made to the Developer in care of Pol sin elli , PC, 700 W. 47 th St.
Suite 1000 , Kansas Cit y, Mis so uri 64112 , Attn: Korb W. Maxwe ll. Co ntempo ra ne o us wit h th e
provi s ion of a Referral Site Not ice , th e Developer shall notify s uch Di spla ced Perso n in writing
of th e ava il ab ilit y of Relocation Payments and as s ista nc e und er th is Relocation P lan.
5. Relocation Payments. Each E li gible Displaced Person shall be entitled to th e
fo ll ow in g Re locat ion Pa ymen t from the Developer:
5.1 Residential Displaced Persons. Eac h res id enti a l Eligible Disp laced
Person shall be pro vi ded with , at th e op ti on of suc h Eligible Di splaced Person, e ith er: (a)
a One Tho usa nd Dollar ($1 000) fixed paymen t ; or (b) actua l reaso nable costs of
rel ocation , including ac tual mov in g costs, utility dep os it s, key deposits , storage of
N-2
EXHIBIT N
personal property up to one (I) month , utility transfer and connection fees a nd oth er
initial rehou sing deposi ts, including first and last month 's rent and sec urit y deposit.
5.2 Displaced Businesses. Eac h El igibl e Displaced Person operat in g a
Business located in the Redevelopment Area sha ll be provided with , at the option of the
Eli gi bl e Displaced Person , either: (a) a T hr ee Thousand Dollar ($3,000) fixed payment ;
or (b) actual costs of moving, including costs for packing, crat in g, di sconnecti on ,
dismantling, rea sse mblin g a nd in sta llin g all perso nal equipment an d costs for relettering
simi lar s igns and si mil ar replacemen t stationery , and up to a n addit iona l ten thousand
dollars for reestablishment expenses. Reestabli shment expe nses are limited to act ual
costs incurred for physical improvements to the rep laceme nt property to accommodate
the particular business at issue.
6. S pecial Needs. Any Displaced Perso n who believes that suc h Displaced Perso n
has any spec ial needs as th e result of s uch Displaced Person's income , age , size of family, nature
of business , availability of su it ab le repla ceme nt facilities and vacancy rates of affordab le
facilities ma y advise the Developer of such needs a nd suc h needs shal l be given specific
consid erati o n wit h re spect to the re locat ion benefits offered to s uch Displaced Person. To notify
the Developer of suc h spec ia l needs , the Di sp laced Person hav in g suc h needs must deliver
wr itten notice to th e Developer in care of Polsinelli, PC, 700 W. 47th St. Suit e 1000. Kansas C ity,
Missouri 64112 , Attn: Korb W. Maxwell. Suc h notice sha ll iden ti fy th e specia l needs and the
basis of the spec ial need. The Deve loper reserves the ri ght to require from any Displaced Person
c laimin g spec ial needs , reaso nab le ev id enc e of the alleged facts upon whi ch a claim for special
needs is based (by way of exa mpl e, co pi es of income tax return s if income is an issue).
7. Deadline for Claims and Payments. A ll claims for Relocation Payments sha ll
be fi led wit h the Developer w ithin s ix (6) months after: (a) for tenants , th e date of di splacement ;
or (b) for owners, the date of di splace ment or th e final payment for th e acquisition of the real
property , whichever is later. Payment for a sati sfact ory cla im for Relocation Payments shal l be
made by the Developer w ithin thi rty (30) days fo ll ow in g the Developer's rece ipt of suffic ien t
documentation to s upp ort the claim.
8. Advance Payment. If a n Eli gibl e Displaced Person demon strate s the need for an
advance payment of the Relocation Payment in order to avoid or red uce a hards hip , the
De ve lope r sha ll issue th e Relocation Payment subje ct to suc h sa fe gua rd s as the Developer may
reaso nab ly es tabli sh and are appropriate to e nsur e th at th e objec ti ve of t he Relocation Payment is
accom pli shed.
9. Waiver of Payment. An Eli gib le Displaced Perso n, who is a lso the owner of t he
app licab le premises, may waive Relocation Payments as part of the negotiations for acq ui sition
of th e interest he ld by suc h Eli gible Di sp lace d Perso n. Such waiver s hall be in writin g, shal l
disclo se th e E ligible Displaced Perso n 's knowledge of the provision s ofthi s Reloca ti on Plan and
Sec ti on 523.205 of the Revised Sta tute s of Missouri and knowledge of ent itlem en t to Relocati on
Payments und er thi s Relocation Plan , and sha ll be filed wi th th e Cit y.
10. Amendment. In the event that a court of compe tent jurisd ict ion determines t hat
thi s Relocation Plan doe s not sat isfy the minimum re quireme nt s of Sec ti on 523.205 of the
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I
EXHIBIT N
Re vi se d Statute s of Mi sso uri , th en th is Rel ocati on Plan shall be aut omati ca ll y and retroacti vel y
amend ed to th e minimum ex tent ne cessary to brin g thi s Re lo ca tion Pl an in co nformit y with th e
minimum requirem e nts of Sec ti o n 523.2 0 5 of th e Rev ised Statutes of Mi sso uri .
N -4