Council approves tax abatement for 208 Marshall Street redevelopment

The Jefferson City Council on Sept. 8 approved a redevelopment plan and related tax abatement for 208 Marshall Street under Chapter 353 of the Revised Statutes of Missouri, clearing the way for the property to be redeveloped into 25 rental units. The ordinance passed following a public hearing and a roll-call vote recorded as passing.

The redevelopment agreement approved by the council provides a 75% property tax abatement for years one through 15 and a 50% abatement for years 16 through 20. City representatives said the project’s total estimated cost is roughly $2.7 million and financing is through Hawthorne Bank. Without development, city staff said the property would generate roughly $8,500 in property taxes over 20 years; with the project and no abatement it was estimated to generate about $690,000 over 20 years, and with the abatement the development is expected to generate roughly $208,000 for taxing jurisdictions over the 20-year period, leaving an estimated abatement value of about $480,000 to the developer.

The redevelopment will convert the site to 25 rental units: 15 one-bedroom units, seven two-bedroom units, two studios and a rooftop penthouse. The plan includes a landscaped courtyard and 16 off-street parking spaces; the developer told council he expects to acquire an additional adjacent lot within about 30 days to add more parking and address prior parking concerns.

Council opened a public hearing before taking action. Thomas Snyder, an attorney representing the developer, described the building’s condition, its 1934 construction and its historical significance and said photographic evidence submitted with the city’s Chapter 353 application showed blight. Snyder said the proposed rents would range at the outset from about $850 to $1,850 per month and that the project would attract a range of downtown residents. “That seems to make a lot of sense to me,” Snyder said of the tax-abatement tradeoff.

Developer DJ Durrett told council the abatement proceeds would be reinvested into modernization items not originally required, including sprinkler and security systems and parking improvements, calling the savings “helping bring this building to modernization.” He also noted delays in earlier related projects and said the developer is progressing with construction and window installation.

There were no speakers recorded in opposition during the public hearing. After council discussion, the bill was put to a roll-call vote and recorded as passing.

The ordinance designates the 208 Marshall Street area as a blighted area under Chapter 353, approves the redevelopment plan and authorizes the tax abatement and a redevelopment agreement. The council set an estimated project completion date of December 2026 and indicated the abatement term would begin on Jan. 1, 2027.