Smith Commons TIF, CID revenues running above original projections, city staff says at public hearing

City staff reported at a public hearing that assessed valuation and tax receipts tied to the Smith Commons redevelopment area are tracking above the figures the tax-increment financing plan projected.

At the June public hearing, a staff presenter said the Smithfield Marketplace TIF (adopted Aug. 1, 2017) covers roughly 66 acres near Cliff Drive and Highway 69 and was created to support the area now called Smith Commons. "This area had definitely increased in a little commercial presence. The assessed valuation is tracking higher than what was expected when the TIF was made," the staff presenter said.

The presenter told the Board the Clay County assessed valuation for the redevelopment area has remained just over $6,000,000 for the last two years — a level the presenter described as "well above the projections that the TIF originally started with." The presenter also gave year-to-date figures for 2025 (seven months): county property tax payments to the TIF appeared inflated at about $387,000 (with roughly $150,000 expected to be distributed via letters accompanying checks, leaving an estimated year-end TIF balance near $300,000). Payments to the school district for the TIF were reported at about $74,800 for the year to date.

Economic activity taxes (EATS) for the redevelopment area were reported at $138,000 through seven months; staff said that number reflects that an anticipated Tractor and Supply store did not open and that receipts could finish the year closer to $260,000–$300,000. The presenter reported Community Improvement District (CID) receipts of $233,000 year to date against a revenue budget of $362,000 and said annualizing current receipts would put the CID near $400,000 for the year.

The presenter listed businesses open in Smith Commons, including Scooters, Taco Bell, Domino's, T-Mobile, Price Chopper, Ace Hardware, Burger King, Jimmy John's and a dentist. On a separate development, staff updated the board on construction at 1 Penn Smith: demolition began in August 2024, the site plan was approved in November 2024, and a building permit issued in January 2025; foundations are complete, the first-floor steel is in place and staff said plumbing under the slab had started with an anticipated early July milestone for remaining work, although weather delays were noted.

No formal action was taken following the hearing; the presenter opened and then closed the public hearing and provided figures for the board’s review.

The board did not vote on changes to the TIF plan at the hearing. Staff said future reports will include longer comparison windows if the board continues to review the update at this time of year.