Council approves Wally's redevelopment package: TIF, TDD and bond authorizations move forward

The Independence City Council on Dec. 15 approved a suite of measures to advance the Wally's redevelopment at Exit 12, including tax increment financing (TIF) provisions, support for a Transportation Development District (TDD), and an industrial development plan authorizing taxable industrial revenue bonds.

City and economic development staff summarized key terms and protections. David Martin said the transportation-related improvements eligible under the TIF plan were approximately $9.8 million, with a maximum reimbursable amount of $7.6 million for specified improvements. Tom Skynold said MoDOT had sent an approval memo outlining required roadway improvements for the project and that those requirements had been communicated to the developer.

Council members asked whether reimbursement would exceed actual eligible costs; development staff confirmed reimbursements were limited to eligible items under the plan and redevelopment agreement. Martin also explained that the Chapter 100-style bond authorization proposed for the industrial development bonds would be used to provide sales-tax exemptions on construction materials; the city would not have a direct payment obligation and the company would be required to insure and indemnify the city's interest.

Ordinances and items the council approved included second readings and votes for cooperative agreements and TIF/TDD actions and, on second reading, an ordinance (25-125) authorizing the City to issue taxable industrial development revenue bonds in a principal amount not to exceed $5,252,050,000, and related redevelopment agreements. The council recorded votes on the items (many passed unanimously, others by recorded 6-1 margins where noted).

Supporters described the project as a major economic opportunity that would make Exit 12 a destination, create hundreds of jobs and generate tax dollars for city services without raising local tax rates. Opponents and some council members urged caution on the location and the details of agreements; Council Member Stewart recorded a 'no' on at least one item citing reservations about municipal involvement, but the package advanced with recorded majorities.

Staff said the TDD would impose an additional 1% sales tax within the Wally's development to support transportation improvements and that the formation process differs from a CID because a TDD requires petition and possible court action. The city emphasized contractual protections (insurance, indemnity) and said staff would oversee implementation and reimbursement activities under the redevelopment agreement.