City Beat: City considers policies to address persistent problems

Titus Williams: After a series of delays, dirt should move soon on first phase of C-Street redevelopment.

Matthew Simpson: New enforcement of short-term rentals creates a precedent-setting moment for council.

• 
• 

The buyout of a Commercial Street funding mechanism, density limitations on short-term rentals and a new approach to curb vehicle noise were all introduced at the Nov. 4 session of Springfield City Council.

The trio of measures were all first readings, meaning they were introduced for discussion and public feedback prior to council votes on Nov. 18. 

C-Street TIF 
One ordinance would amend the Commercial Street tax increment financing, or TIF, redevelopment plan by removing properties in the 17-parcel, 7.5-acre Commercial-Pacific Street Redevelopment Area, headed by developer Titus Williams. 

The C-Street TIF, established in 2008, captures payments in lieu of taxes, or PILOTs, and economic activity taxes in the district. Since the TIF was established, it has directed $2.2 million into a special allocation fund, financing streetscapes, a facade loan program, street and alleyway improvements, signage, public parking lots and public art, according to the written explanation of the bill provided to council by city staff. 

Williams’ Commercial-Pacific plan, approved by council in April, aims to redevelop four areas with multifamily residential and commercial projects.  

Through his Commercial-Pacific Street Redevelopment Corp., Williams has agreed to a buyout of the remaining TIF PILOTs in the amount of $212,506, and the city is currently in possession of the funds, pending approval of the council bill, according to the council report. 

The city discourages Chapter 353 partial real property tax abatement, which the redevelopment project intends to use, within approved TIFs, according to the explanation of the bill provided by city staff. 

Williams gave an update on the first of four areas to be developed, called the Pacific South Project Area, where 72 townhouse dwelling units are being built. The area is on East Pacific Street between North Jefferson and North Benton avenues. 

Williams said it took a long time to get construction documents done after the April approval by council, and now a building demolition permit has been applied for and environmental remediation is underway. 

“Once we have that completed, we should be able to start moving some dirt there and start the construction,” he said. 

C-Street business owner and resident Christine Schilling expressed objections to the buyout during the public comment period. 

“Two hundred thousand dollars is paltry – it’s kind of like wampum for Manhattan Island,” she said. “This is not fair compensation for the removal of these properties from our TIF. Once they’re gone, they’re gone.” 

The sum was arrived at, according to developer representative Richard Walters of law firm Spencer Fane LLP, by looking at the assessed value of the properties in 2023 – approximately $559,000 – and multiplying that by the average of the tax levy that has been imposed over the last seven years, equaling a little over $30,000. That sum was multiplied by the seven years remaining on the TIF, Walters said. 

Business and property owner Joseph Gidman said he was in favor of the proposal. 

“I’m ready to see something happen,” he said.  

Gidman asked that council make certain Williams follows through, and that if things don’t happen in a certain time frame the money go back to the TIF. 

Short-term rentals proposal 
Another proposed amendment to an existing city ordinance would prohibit a Type 2 short-term rental dwelling within 500 feet of another. The proposed change would replace a requirement limiting density to one Type 2 STR per eight houses on a block, including both sides of the street, according to the explanation of the bill.

A Type 2 STR is located within a residential zone, and the owner does not reside on the premises. Type 1 STRs are also in a residential neighborhood but serve as the primary residence of the owner. 

The measure would require an annual business license for both Type 2 and Type 1 STRs, and it would prohibit promotion of an unlicensed STR. Type 2 STRs may not be rented out for receptions, weddings or parties on the property under the proposed ordinance. 

Currently, those applying for a license to run an STR must get the signatures of 55% of owners of properties within 500 feet to show that the neighbors approve of the use of the property for STR purposes. Applicants who do not reach that threshold may appeal to council for permission to operate. 

Under the proposed ordinance, a new threshold would allow approval if fewer than two or 30% of adjacent property owners – whichever is greater – submit a letter of objection. 

Type 3 STRs – that is, those that are not in a single-family or townhouse residential zoning district but often are located in apartment buildings – would remain limited to one per building. 

The measure would require that hosting platforms, like Vrbo and Airbnb, collect and remit city taxes on behalf of the STR owner. Platforms would be required to disclose to the city every short-term rental listing in Springfield and the names of people responsible for the listing, plus the length of stay and price for each listing. Bookings would not be allowed for unlicensed STRs, the ordinance states. 

Persons found guilty of violations would be punishable by a fine of up to $1,000 and/or a jail term of up to 180 days, according to the ordinance, which would not allowed suspended imposition of the sentence by a court. Each day a violation continues would be deemed a separate offense. 

Earlier in the meeting, council postponed votes on requests for permits for two STRs that have been in operation for at least nine months but have not paid occupancy taxes. The STRs, located at 912 S. Nettleton Ave. and 507 W. Ildereen St., are both owned by Cheryl Kreider, operating as Sea Cay LLC.

David Holtmann, the city’s director of finance, said if an operator is delinquent on taxes, a business license will not be issued.

Councilmember Matthew Simpson said enforcement letters have only just begun to go out to operators.

“I don’t think we want to complain about these coming forward,” he said. “That’s exactly what we’re asking staff to do.”

Simpson called the matter a precedent-setting moment, and he made a motion – approved by council – to postpone the vote until the next meeting, allowing the operator to pay the delinquent taxes.

Noise ordinance 
A proposed amendment to a city ordinance would allow witnesses to vehicle noise to provide evidence that would result in a fine for a vehicle owner. 

City Attorney Jordan Paul introduced the measure by noting it would not entirely solve the issue of vehicle noise disturbances. 

“I want to be really clear from the outset – this is not a silver bullet,” he said. “This is just an additional tool to supplement your existing noise ordinances.” 

Paul said that currently, both the vehicle and the operator must be identified for a case to be proven. The ordinance under consideration would allow a witness to turn evidence of noise with vehicle identification whether or not the operator is known.

A civil penalty of $100 could be assessed to a vehicle owner. That person could then pay the $100 fine or request an administrative hearing to contest it. 

Other action items
• Council accepted an allocation of $3.5 million from the Missouri General Assembly for maintenance and improvements to Hammons Field, the city-owned home of the Springfield Cardinals. Some of the work planned includes stadium audio replacement, improvements to the press area, roof and masonry repairs, and steel cleaning and repairs.

• An application for a $5 million grant from the U.S. Department of Housing and Urban Development was approved. The funds would allow The Kitchen Inc. to build a 32-unit housing facility for people ages 55 and older, with dedicated set-asides for those experiencing homelessness.

• A $500,000 grant accepted from the U.S. Environmental Protection Agency will fund the community-wide assessment grants program, which addresses sites contaminated by hazardous substances so that they may be cleaned and put to productive use. Council also accepted $597,000 from the federal Centers for Disease Control and Prevention. The grant is intended to expand epidemiology and laboratory capacity.

• Council held the first reading of a rezoning measure for 5.4 acres at 817 W. El Camino Alto, proposing a change to office district with a conditional overlay from low-density multifamily residential. Developer Ridge HZ55 LLC is proposing a senior living facility.

• The first reading of an ordinance authorizing an executive recruitment service, Texas-based Strategic Government Resources Inc., was held. The company would assist in finding a replacement for City Manager Jason Gage, who is resigning. The cost of the service is not to exceed $34,000.