Mayoral candidates discuss city development

Five of the six candidates discussed Columbia's urban growth.

By Gregory Zajac

Published March 23, 2010

Columbia's future, city development and taxes were topics discussed by the city's mayoral candidates Monday night in Fisher Auditorium.

The Columbia Missourian hosted the forum, which also featured candidates for the Fourth and Third Wards.

Mayoral Candidates Sid Sullivan, Jerry Wade, Paul Love, Bob McDavid and Sean O'Day were all present. Sal Nuccio did not attend.

Tax Increment Financing

One of the first topics discussed during the forum was Tax Increment Financing.

According to previous Maneater reports, TIF is a urban growth plan in which cities usually subsidize development by giving developers back a percentage of the local sales tax and the new, real property tax generated by the project.

Because these amounts are based on projected tax revenue, the city is not out any money if a project doesn't come to fruition.

The use of TIF to promote development was approved more than a year ago but has only been used successfully by Tiger Hotel, moderator David Lile said. A proposed mix-use development on Tenth and Locust streets also applied for TIF funds, but the developer withdrew his bid.

Lile asked the candidates if they thought TIF was a failed experiment and whether it should be expanded past downtown.

Love said he didn't know if the Tiger Hotel restoration project was providing the right benefit to the surrounding area.

"I don't think they're a failed experiment, but I think they have been used inappropriately in many conditions," Love said.

McDavid said you have to determine on a case-by-case basis whether a project can be completed without TIF funding.

"It is a useful tool," McDavid said. "It will be used in the future wisely. It needs to be used judiciously."

Richland Road annexation

In another development-related topic, the mayoral candidates discussed a proposal to annex about 271 acres off Richland Road east of Columbia, where developers intend to place commercial and residential properties.

Lile said City Council has tabled the ordinance annexing the land twice. O'Day said now is not the time to annex new land.

"I think now is the time when we really need to focus on the infrastructure already inside the city limits," he said.

Sullivan said the city is annexing the land to develop it commercially and that is an improper use of the city's zoning ordinance.

"They need the planning commission to decide how that land is going to be used prior to any kind of upzoning," he said.

Upzoning is a process in which a piece of land is rezoned to hold denser development.

The issue was tabled at the March 1 council meeting and will be brought up again at the July 19 meeting.

Use taxes

The topic of taxation also came up during the forum. According to the city budget for this fiscal year, 11 percent of Columbia's revenue is expected to come from sales taxes, but the city collects no sales taxes on online or out-of-state purchases.

Twice in the late '90s, city voters defeated a proposal for a use tax, which would tax these areas, Lile said.

Love said a use tax now would be too difficult to implement, and what consumers gain in paying no sales taxes, they lose in shipping costs.

"You're either going to have to depend on every single individual citizen to find ways to pay that themselves, or you're going to have to find ways to collect money from people in Nantucket," Love said about use taxes.

Wade disagreed with Love. He said not having a use tax creates an unequal playing field.

"Local businesses are competing with internet purchases that don't pay sales tax," he said.

Citywide elections will take place April 6.