City Beat: Council considers $42M in bonds

Erick Roberts: Landfill measure declares city's intent to issue $35 million in bonds.

Monica Horton: Disapproval of other Commercial-Pacific phases wouldn't make sense.

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Nearly $42 million in potential bonds are on the table at the city of Springfield.

Springfield City Council on Nov. 18 voted on one measure and heard the first reading on another for bond packages that would help pay for city projects.

Erick Roberts, assistant director of the Department of Environmental Services, introduced the first bill to declare the intent of the city to issue $35 million in special obligation bonds for an expansion to the Noble Hill Sanitary Landfill.

“The city was granted a 42-acre expansion to the landfill in 2019, and that expansion included eight new landfill cells,” Roberts told council members. “The Department of Environmental Services is in the final stages of preparing a bid package for the construction of the initial cells within that expansion area.

“If approved, the department has a tentative schedule to issue the bid package and the associated bonds in early calendar year 2025.”

Roberts said in addition to the new cells, the expansion would include environmental infrastructure and utility improvements. The debt service would be collected by landfill tipping fees through the integrated solid waste management system fund, said Roberts.

“This does not commit the city. It does express the intent?” Mayor Ken McClure asked.

Roberts replied, “That’s correct.”

The council bill’s language indicates the Department of Environmental Services would bring forth a separate council bill to formally authorize the issuance of the bonds if officials determine the financing method is in the best interest of the city.

Council members voted 9-0 on the measure.

A second bond measure of $6.5 million considered by council on Nov. 18 is part of the funding stack for the Renew Jordan Creek project, said Cora Scott, the city’s director of public information and civic engagement, in an email following the meeting. She noted the special obligation bonds would be issued by the city to the Missouri Department of Natural Resources to demonstrate the repayment source for a loan in the amount of $6.5 million.

At the council meeting, city professional engineer Kirkland Preston said the Public Works Department recommends approval of the bond issue, the low-interest loan and the acceptance of a $3.5 million clean-water grant being awarded in conjunction with the state revolving fund funding, necessitating a roughly $10 million adjustment to the city’s budget.

“The SRF loan and grants will support the construction of Renew Jordan Creek from Main to Boonville and enhance water quality in the Jordan Creek watershed through green infrastructure and native plantings,” Preston said.

McClure noted council would vote on the measure Dec. 3.

C-Street TIF
Council approved an amendment to the Commercial Street tax increment financing redevelopment plan related to developer Titus Williams’ work in the historic corridor.

The unanimous 9-0 vote amends the TIF by removing properties in the 17-parcel, 7.5-acre Commercial-Pacific Street Redevelopment Area, headed by Williams. It also allows the city to accept a $212,506 buyout from Williams via Commercial-Pacific Street Redevelopment Corp. in lieu of taxes that would have been captured by the TIF.

Williams’ Commercial-Pacific plan, approved by council in April, aims to redevelop four areas with multifamily residential and commercial projects. The city discourages Chapter 353 partial real property tax abatement, which the redevelopment project intends to use, within approved TIFs, according to past reporting.

Prior to the Nov. 18 vote, Councilmember Monica Horton expressed concerns with council’s April approval of Williams’ multiphase development. Council’s action earlier this year gave the go-ahead to a declaration of blight and approval for all four phases, as well as a 25-year tax abatement for the first phase.

“We’re at the point of no return with this whole redevelopment plan,” Horton said at the Nov. 18 meeting, prior to voting in favor of the TIF amendment.

At council’s Nov. 4 meeting, 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.

“I believe that we are at a point right now where it’s now known that the amenities for Pacific South are in a different phase of this redevelopment plan, and so therefore it wouldn’t even make sense to deny any other phase of this redevelopment plan because Pacific South is directly connected with phases that are not even approved yet,” Horton said on Nov. 18. “If Mr. Williams is not able to successfully market the amenities that are forthcoming in phases that are not approved, Pacific South will probably not even be viable.

“We have set it up to where disapproval of any other phases wouldn’t even make sense at this point.”

At the Nov. 4 meeting, 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 told council.

Williams also said at the previous council meeting that the planned development process caught him off guard because of its increased cost from bids obtained before the planned development.

“Because of that we’re going through the process of value engineering the Pacific South piece,” he said at the time.

Williams’ plan for the area extending south from East Commercial to Pacific Street includes mixed-use and townhome construction and a renovation of the Missouri Hotel.

Williams has owned the Missouri Hotel and surrounding property since 2017, according to past reporting.

Short-term rental definitions
Council voted 9-0 on an amendment to an existing city ordinance to prohibit a Type 2 short-term rental dwelling within 500 feet of another. The change replaces a requirement limiting density to one Type 2 STR per eight houses on a block, including both sides of the street. A Type 2 STR is located within a residential zone, and the owner does not reside on the premises.

Among other changes in the council bill, the amendment requires hosting platforms like Vrbo and Airbnb to collect and remit city taxes on behalf of the STR owner, according to past reporting.

Other action items:
• Council gave the green light to a rezoning measure for 5.4 acres at 817 W. El Camino Alto, where developer Ridge HZ55 LLC is planning a senior living facility.

• A $1 million grant award was accepted from the U.S. Environmental Protection Agency for the city’s brownfields revolving loan fund.

• An amendment to a city ordinance was approved that allows witnesses to vehicle noise to provide evidence that would result in a fine for a vehicle owner.