About

Economic Development Districts

Learn about Economic Development Districts for Independence Economic Development, including Crackerneck Creek TIF, Crackerneck Creek Transportation Development District, and I-70 & Little Blue Parkway TIF.

Crackerneck Creek TIF

Overview

  • Established by the City on October 18, 2004 pursuant to Ordinance No. 15874
  • Termination date for TIF capture: December 19, 2027
  • Approximately 192 acres, the development was intended to include:
    • Bass Pro Store
    • Minimum of 300,000 square feet of additional retail
    • Hotel
  • 3 Redevelopment Project Areas: (1) East Retail Site; (2) West Retail Site; and (3) 40 Highway Retail Site
  • City entered into a Redevelopment Agreement on February 9, 2005 with Crackerneck Creek, LLC and entered into a First Amendment to Redevelopment Agreement on March 16, 2006 with Crackerneck Creek, LLC

Revenue Sources

  • PILOTs: 100% of the incremental increase in property tax revenues resulting from the annual increase in property valuations over the base property valuation certified at project approval.

  • EATs: 50% of the incremental increase in local eligible sales tax revenues (City, County, Zoo District, 39th Street TDD, Crackerneck Creek TDD) over the based sales levels in the year before TIF collection was activated ($0).

  • Bass Pro Lease Payments:

  • State TIF Revenues: The TIF revenues allocated pursuant to the Certificate of Approval for the Crackerneck Creek
    TIF Plan (November 2, 2005) are allocated to repayment of the Crackerneck Creek debt. This revenue stream
    consists of the lesser of (a) 50% of the 3% general revenue portion of the state sales tax collected on net new sales in the TIF area (includes approximately 40% of the sales at Bass Pro and other retailers in the area) or (b) a schedule of annual payments as attached to the Certificate.

Outstanding Economic Development Bonds for Crackerneck Creek:

2006B Crackerneck Creek


2013A Crackerneck Creek


2013B Crackerneck Creek


2015C Crackerneck Creek


2015D Crackerneck Creek

Crackerneck Creek Transportation Development District

Overview

  • Established by Final Order and Judgment Certifying Creation of the Crackerneck Creek Transportation
    Development District on July 26, 2006; City entered into a Cooperative Agreement on April 21, 2008 with the
    Crackerneck Creek Transportation Development District and Crackerneck Creek, LLC and entered into a First
    Amendment to the Cooperative Agreement on March 1, 2010

Revenue Sources

  • Sales Tax: 1% sales tax is imposed on businesses within the boundaries; 50% of the revenues not captured as EATs
    by the Crackerneck Creek TIF are dedicated to the repayment of the portion of the Crackerneck Creek debt related
    to transportation improvements; tax terminates in 2036.

I-70 & Little Blue Parkway TIF

Overview

  • Established by the City Council on December 17, 2012 pursuant to Ordinance No. 18038
  • Approximately 386 acres and includes 4 Redevelopment Project Areas
    • Project Area #1 includes the Menards; TIF capture will terminate on December 16, 2035
    • Project Area #2 includes the Independence Events Center property and the EATs captured within
      Project Area #1 generated by the Events Center CID sales tax are pledged to the Independence
      Events Center obligations
    • Project Area #3 includes Crackerneck Center and includes retail commercial and service commercial uses;
      TIF capture will terminate on December 17, 2035
    • Project Area #4 includes the Crackerneck Creek TIF
      • TIF was not activated within Redevelopment Project Area #4, and the PILOTs and EATs captured
        within the Crackerneck Creek TIF Area are captured pursuant to the Crackerneck Creek TIF
      • The TIF Revenues captured within Project Area #1 and Project Area #3 are pledged to pay the
        obligations associated with the Crackerneck Creek TIF

Revenue Sources

  • Redevelopment Project #1: The Quiktrip store and Menards store located generally at the northeast quadrant of
    I-70 and Little Blue Parkway generate PILOTs and EATs pursuant to the I-70 and Little Blue Parkway TIF Plan.
    These revenues are dedicated to the repayment of the Crackerneck Creek debt.
  • Redevelopment Project #2: The development located at the northwest quadrant of I-470 and Highway 40 (Main
    Event, Old Chicago, Slim Chickens, Charlie’s Car Wash) generate PILOTs and EATs pursuant to the I-70 and Little
    Blue Parkway TIF Plan. These revenues are dedicated to the repayment of the Crackerneck Creek debt.

39th Street Transportation Development District

Overview

  • Established by Final Order and Judgment Certifying Creation of the 39th Street Transportation Development
    District on November 19, 2001

Revenue Sources

  • Sales Tax: 0.00125% (one-eighth of one-percent) sales tax is imposed on businesses within the boundaries; 50%
    of the revenues are captured as EATs by the Crackerneck Creek TIF; the remainder are dedicated to other projects;
    tax terminates on August 31, 2032

Other Potential Revenue Sources and Information for Crackerneck Creek

Overview

  • At termination of each listed TIF Plan below, City property taxes and sales taxes previously captured as PILOTs
    and EATs and deposited into various subaccounts of the Special Allocation Fund will become available for City
    purposes, including (to the extent that the purpose of each tax allows), appropriation to debt service on Crackerneck Creek bonds and other outstanding bonds of the City

Revenue Sources

  • Hartman Heritage TIF; terminates on May 17, 2021
  • Drumm Farm TIF; terminates on December 5, 2022
  • Centerpoint TIF; terminates on December 5, 2027

Centerpoint TIF

Overview

  • Established by the City on December 6, 2004 pursuant to Ordinance No. 15910
  • The Developer and City have amended the Centerpoint TIF Plan two times: (1) the First Amendment to the
    Independence Regional Medical Center TIF Plan approved on February 19, 2008 pursuant to Ordinance No. 16943
    and (2) the Second Amendment to the Independence Regional Medical Center (Centerpoint) TIF Plan approved
    January 19, 2016 pursuant to Ordinance No. 18549
  • 3 Project Areas
    • Redevelopment Project includes the Centerpoint Medical Center; TIF will terminate on December 5, 2027
      • Expanded in 2008 to include the Independence Events Center and corresponding public
        improvements
        • Purpose of this amendment is to pledge PILOTs and EATs in an amount equal to the
          captured Independence Events Center CID sales tax (1%) revenues and make them
          available to the City and the Independence Events Center CID to pay project costs and
          obligations associated with the Independence Events Center CID
      • Expanded in 2016 to include the southwest corner of the TIF Area
  • Improvements completed include:
    • Centerpoint Medical Center
    • Medical office building
    • Dialysis Center and Nephrology Building
    • Sarah Cannon Cancer Center
  • TIF Plan provides for the following:
    • Creation of a Building Rehabilitation Fund, which allows for TIF Revenues to be used in the maximum
      amount of $12,000,000 to provide funding for the redevelopment of the Independence Regional Health
      Center ($10,000,000 maximum) and the Medical Center of Independence ($2,000,000 maximum)
    • Reimbursement of capital costs incurred as a result of the project by the Blue Springs School District in the
      amount of $2,000,000 and the Independence School District in the amount of $5,500,000
    • Reimbursement of City transportation costs associated with providing bus service to the hospital and other
      locations in the maximum amount of $2,000,000

Revenue Sources

  • PILOTs: 100% of the incremental increase in property tax revenues resulting from the annual increase in property valuations over the base property valuation certified at project approval.
  • EATs: 50% of the incremental increase in local eligible sales tax revenues (City, County, Zoo, Independence Events Center CID, 39th Street TDD) over the base sales levels in the year before TIF collection was activated ($0).
  • TIF Plan relies primarily on PILOTs generated as the main source of TIF revenue

Implementation of Building Rehabilitation Fund

  • The City, the Independence School District and Edwards Management Group, LLC entered into a Redevelopment
    Agreement for the Independence Regional Entrepreneurial Center on May 8, 2009 pursuant to Ordinance No. 17288 passed on April 13, 2009
  • Provides the arrangement by which TIF Revenues allocated to the Building Rehabilitation Fund would be paid by
    the City for the redevelopment of certain portions of the Independence Regional Health Center to provide for
    Independence School District administrative offices and a business incubation center
    • As the City appropriates TIF Revenues to the Building Rehabilitation Fund from the TIF Plan, the funds
      will be paid to the Independence School District in order to allow them to make its own debt service
      payments on obligations issued by the Independence School District to fund costs associated with the
      redevelopment of the Independence Regional Health Center
  • The City is not obligated to make up any shortfalls with regards to the Building Rehabilitation Fund from the general fund revenues or any other City revenues; the actual revenues that become available are based entirely on the amount of TIF Revenues produced by the project

Midtown Truman Road Redevelopment Plan

  • Payment is calculated annually based on the difference between the revenue generated for all taxing districts by the real property tax levies for all ad valorem real property taxes on the Independence Regional Health Center real property in 2005 and the revenue generated by such real property tax levies on the Independence Regional Health Center real property in the year of calculation

Outstanding Economic Development Bonds for Centerpoint:

2012D Centerpoint


2014B Centerpoint


2016B Centerpoint

Eastland Center TIF

Overview

  • Established by the City on January 3, 2000 pursuant to Ordinance No. 14393
    • TIF will terminate on January 2, 2023
  • The Developer and City have amended the Eastland Center TIF Plan numerous times: (1) the First Amended
    Eastland Center TIF Plan approved on December 6, 2004 pursuant to Ordinance No. 16283; (2) the Second
    Amended Eastland Center TIF Plan approved February 10, 2008 pursuant to Ordinance No. 16946; and (3) the
    Third Amended Eastland Center TIF Plan approved October 20, 2008 pursuant to Ordinance No. 17169
  • Approximately 212 acres generally located at the southeast corner of the intersection of Interstate Highway 70 and
    US Highway 291
  • Public improvements are substantially complete and consisted of the following:
    • Street improvements and related landscaping, traffic studies, design, engineering and surveys
    • Excavation and demolition of storm sewers and utility relocation
    • Traffic signals and controls
    • Retaining walls, sidewalks, streetlights and related improvements
    • Fencing and landscaping screens
    • Certain clearing, grading, stormwater and utility costs on the site of the Project
  • Private improvements included retail, hotel and office development and have also been substantially completed
  • City entered into a Redevelopment Agreement on in 2000 with Eastland Center Associates, L.L.C. and has entered into subsequent amendments, the most recent being the Eleventh Amendment to the Eastland Center Redevelopment Agreement approved on October 20, 2008 pursuant to Ordinance No. 17169

Revenue Sources

  • PILOTs: 100% of the incremental increase in property tax revenues resulting from the annual increase in property valuations over the base property valuation certified at project approval.
  • EATs: 50% of the incremental increase in local eligible sales tax revenues (City, County, Zoo, Independence Events Center CID, 39th Street TDD) over the based sales levels in the year before TIF collection was activated ($25,000).

Outstanding Economic Development Bonds for Eastland Center:

2012E Eastland


2014A Eastland


2017A Eastland

Hartman Heritage TIF

Overview

  • Established by the City on May 18, 1998 pursuant to Ordinance No. 13094
    • TIF will terminate May 17, 2021
  • Project consisted a mixed-use development complex containing approximately 60.29 acres and generally located
    north of Interstate Highway 70 at its intersection with Little Blue Parkway and south of the Little Blue River
    consisting of the following:
    • 270,000 square feet of new retail/commercial space called the “The Pavilions,” convention center hotel and
      full-service restaurant, up to 350,000 square feet of office space, up to 40,000 square feet of additional
      restaurant, professional or office development space, and related public improvements
  • The public improvements portion of the project are substantially complete and private improvement portion that
    has been completed includes Bed, Bath and Beyond, buybuyBaby, Hereford House and a Hilton Garden Inn
  • City entered into a Redevelopment Agreement on December 17, 1998
    • A First Amended and Restated Development Agreement was entered into on May 27, 2003

Revenue Sources

  • PILOTs: 100% of the incremental increase in property tax revenues resulting from the annual increase in property valuations over the base property valuation certified at project approval.
  • EATs: 50% of the incremental increase in local eligible sales tax revenues (City, County, Zoo, 39th Street TDD,
    Events Center CID) over the base sales levels in the year before TIF collection was activated ($0).

Outstanding Economic Development Bonds for Hartman Heritage TIF:

2011B Hartman Heritage

Independence Events Center CID (included since it pays into bonded TIF obligations)

Overview

  • Established by the City on December 20, 2007 pursuant to Ordinance No. 16905
    • CID will terminate in 2042
  • Consists of approximately 1,294 acres generally located at the intersection of I-70 and Highway 291
  • Successful election approving a district-wide sales tax at the maximum rate of 1% sales tax for a period of 35 years
    on February 26, 2008
    • Qualified voters voted to impose the sales tax in increments of 1/8th of 1%
    • The CID passed Resolution No. 2008-04 on March 5, 2007 setting the initial sales tax at 1/2th of 1% (0.5%)
      beginning July 1, 2008
    • The CID intended to impose the sales tax at the rate of 0.5% for a period of 20 years and then increasing
      the sales tax to a rate of 0.625% for a period of fifteen years
      • The CID may impose the sales tax in increments of 1/8th of 1% up to the maximum of 1%
  • In 2011, the CID authorized an increase of the sales tax to 0.75% (effective July 1, 2012) to account for lower than expected retail sales; sales tax increased to 1% on January 1, 2019
  • Sales Tax rate may be increased if necessary, up to the maximum of 1% to pay debt service on any of the outstanding bonds
  • Public improvements consisted of the following:
    • Events Center
    • Property acquisition
    • Improvements to internal, collector, and arterial roads and highways
    • Streetscape, curbs, gutters, sidewalks, ramps, benches and lighting
    • Transportation services stops
    • Traffic signals
    • Parking structures and lots
    • Landscaping and other aesthetic improvements
    • Sewer system facilities and infrastructure
    • Water system facilities and infrastructure
    • Water drainage and detention facilities
    • Signage
    • Site preparation
  • District services to include providing for, or contracting for and funding or assisting in the funding of, the IndeBus
    System in coordination with the Crackerneck Creek TDD
  • City entered into a Cooperative Agreement in 2008 with the Independence Events Center CID and have entered
    into an amendment in 2017
    • CID covenanted, subject to annual appropriation by the CID Board of Directors, to remit moneys it receives
      from the sales tax to the City for repayment of the outstanding bonds less the following:
      • Any amount paid under protest until the protest is withdrawn or resolved
      • Such amount as is retained by the State of Missouri for collecting the sales tax
      • Any sum received by the CID which is the subject of a suit or other claim communicated to
        the CID
      • An administration fee payable to the City in the amount of 2% of the total sales tax , plus any actual
        costs and expenses incurred by the City
      • One-time payment of $1,200 to reimburse the City for administrative set-up
      • Actual, reasonable operating costs of the CID
      • Any costs and expenses incurred in connection with any collection or enforcement issues associated
        with the sales tax

Revenue Sources

  • SALES TAX: Up to 1.0%; currently 0.75%; terminates in 2042
  • EATs: A pledge of 50% of the incremental increase in local eligible sales tax revenues generated by the
    Independence Events Center CID sales tax over the base sales levels in the year before TIF collection was activated in the following TIF Redevelopment Areas:
    • Centerpoint TIF
    • Hartman Heritage TIF
    • Trinity TIF
    • Eastland TIF

Outstanding Economic Development Bonds for Independence Events Center:

2011A Event Center


2012C Event Center


2016A Event Center

Drumm Farm TIF

Overview

  • Established by the City on December 6, 1999 pursuant to Ordinance No. 14366
    • TIF will terminate December 5, 2022
  • Project consisted of an approximately 320-acre tract of land, which was subdivided to provide for the development
    of 143 residential lots, a public golf course and certain public improvements
  • The public improvements portion of the project have been completed and the golf course opened in 2002
  • City entered into a Redevelopment Agreement on March 1, 2000 with Golf Strategies, LLC; Redevelopment
    Agreement has been amended at various times
    • Provides that the maximum reimbursement to Developer is $92,974,000

Revenue Sources

  • PILOTs: 100% of the incremental increase in property tax revenues resulting from the annual increase in property
    valuations over the base property valuation certified at project approval.
  • EATs: 50% of the incremental increase in local eligible sales tax revenues (City, County, Zoo) over the base sales
    levels in the year before TIF collection was activated ($0).

Outstanding Economic Development Bonds for Drumm Farm:

2016C Drumm Farm

Sante Fe TIF

Overview

  • Established by the City on December 22, 1997 pursuant to Ordinance No. 130807
    • City approved the Santa Fe Redevelopment Project on November 6, 2000 pursuant to Ordinance
      No. 14647
    • TIF will terminate November 5, 2023
  • Project was anticipated to consist of approximately 220,200 square feet of new retail/commercial space, the existing Winstead’s restaurant, approximately eight new residential units and related off-site public improvements generally located on 29 acres along the west side of Noland Road and south of South Side Boulevard
  • City entered into a Redevelopment Agreement on August 7, 2000 that has been amended twice

Noland Road TIF Revenues Reimbursement Agreement

  • Defines and reimburses the City for shortfall payments, as well as adds revenues to the revenue streams earmarked for the outstanding Santa Fe Bonds
  • If the total of
    • (a) EATs from the Noland Road TIF Projects 3 and 41,
    • (b) Santa Fe TIF Revenues (including PILOTs and EATs, but excluding any payments received by the City
      or deposited into the Special Allocation Fund pursuant to the Santa Fe Neighborhood Cooperative
      Agreement)
    • (c) Interest on the Santa Fe TIF Revenues in the Special Allocation Fund
    • (d) Interest on the debt service fund for the outstanding Santa Fe Bonds
    • (e) State TIF Revenues from the Santa Fe TIF

             is less than the debt service on the Series 2015A & 2015B Bonds, then the Noland Road TIF Revenues
             Reimbursement Agreement requires the City to pay such shortfall from 50% of the 1% general sales tax
             within the Noland Road TIF Projects 1, 2, 3, and 4 (“City Super TIF” or “City Additional Contribution”), and then,
             if that does not cover the shortfall, the City will have to appropriate other revenues to cover the debt service (this
             last appropriation is what the Developer is require to reimburse semiannually and is referred to as the “City’s
             Semiannual Contribution Amount”).

  • If the debt service is covered by the TIF Revenues described on (a)-(e) above, the City does not have to add any
    additional funds for supersinkers or otherwise, only scheduled debt service must be met
  • Twice a year the Developer is required to reimburse the City for the City’s Semiannual Contribution Amount,
    calculated as follows:
    • Series 2015A and Series 2015B Debt Service minus (a) the sum of (a)-(e) above and (b) the City Super
      TIF Amount
  • The City does not get reimbursed for the City Super TIF amounts, but does get reimbursed for the City’s Semiannual Contribution Amount (the extent to which the TIF and City Super TIF fall short of the debt service on the Series 2015A and Series 2015B Bonds)
  • The Developer has to reimburse the City’s Semiannual Contribution Amount, but only to a certain extent:
    • The maximum dollar amount of reimbursement for any semiannual payment date is $116,500 and the
      Developer gets a credit against that amount for 50% of any EATs and PILOTs created during the applicable
      semiannual period by businesses developed on land in the Santa Fe TIF Area that was vacant on August
      19, 2014
  • The City must bill the Developer for the reimbursement on or before June 1 and December 1 of each year with a
    calculation of how the City arrived at the amount billed

Revenue Sources

  • PILOTs: 100% of the incremental increase in property tax revenues resulting from the annual increase in property valuations over the base property valuation certified at project approval.
  • EATs: 50% of the incremental increase in local eligible sales tax revenues (City, County, Zoo) over the base sales
    levels in the year before TIF collection was activated ($0).
  • NEW STATE REVENUES: Subject to annual appropriation by the General Assembly, new state revenues equal
    the incremental increase in the general revenue portion of the state sales tax revenues, excluding taxes deposited to the school district trust fund, sales and use taxes on motor vehicles, trailers, boats and outboard motors, and future sales taxes earmarked by law
  • NOLAND ROAD TIF: Revenues generated from the Noland Road TIF as described in the Noland Road TIF
    Reimbursement Agreement

Outstanding Economic Development Bonds for Sante Fe:

2015A Santa Fe


2015B Santa Fe

Additional Resources and Economic Development Districts With No Outstanding Bonds

For a detailed breakdown of all Independence, Mo economic development districts please refer to the following document -

Summary of TIF Redevelopment Areas

For an interactive map of Independence, Mo Sales Tax Areas and Rates, TIF, and TDD areas please click the following link -

independence.maps.arcgis.com

Below is a list of all economic development districts with no outstanding bonds -

  • North Independence (Winterstone) TIF
  • Mount Washington TIF
  • Independence Square TIF
  • Noland and 23rd Street TIF
  • Recover Sales Outlet (Cargo Largo) TIF
  • Blue Ridge Crossing TIF
  • Marketplace Shopping Center TIF
  • I-70 and Little Blue Parkway TIF
  • Old Landfill (Stone Canyon) TIF
  • Trinity TIF