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Smithville staff reports Marketplace TIF outpacing projections; CID and sales tax tracking higher than expected
Summary
City staff told the Board of Aldermen the Marketplace TIF, created in 2017, now covers about 66 acres and has produced roughly $6 million more assessed value than the developer projected; officials also reported steady CID and sales‑tax performance and a timeline for the 110 Smithville project.
An unidentified city presenter told the Smithville Board of Aldermen that the Marketplace tax increment financing (TIF) plan, established in August 2017, now covers just over 66 acres and is generating more value than originally projected. “The marketplace TIF plan started in August of 2017, covers just over 66 acres,” the presenter said during the board’s annual update.
The presenter said the TIF baseline assessment goes back to about $52,430 and that assessed valuations have already exceeded the developer’s original projections by roughly $6 million, several years sooner than expected. The presentation also outlined how PILOTs (payments in lieu of taxes) are distributed, noting most revenue goes to a special allocation fund and that a predetermined portion returns to the school district under the developer agreement.
Officials reviewed economic activity tax (EATS) projections and actuals, saying fiscal 2024 figures will show a temporary dip in part because a scheduled payment from the zoo district was delayed while the district upgraded financial software. The presenter also flagged that a previously counted $700,000 projection tied to a Tractor Supply store remains in the forecast despite that store never being built.
On the Smithville Common community improvement district (CID), the presenter said the 1% CID is performing near projections for 2024 and that local sales tax activity has been strong. “Even without the tractor supply store in there, it’s still tracking high,” the presenter said.
The presenter gave a progress report on the 110 Smithville project, which began in February 2023: demolition began in October, grading was expected to start in December, and construction is scheduled for spring 2025. The presenter said the 110 Smithville TIF will use a PILOT structure similar to the commons.
Megan Miller of Gilmore and Bell was present to answer technical questions about the TIF and PILOT structure. Board members asked clarifying questions at the end of the presentation; no formal action on the TIF plan was taken at the meeting.
The board’s next procedural steps were not specified during the presentation; staff said they would continue monitoring payments and updates to projected revenues.
