The Fort Scott City Commission unanimously approved an ordinance Tuesday evening that names the lot that formerly included Woods an enterprise zone, and thus eligible for Tax Increment Financing.
By the end of the year, a Price Chopper grocery store is expected to be open for business, with the possibility of retail or other commercial services also available on the lot, which has been unused since Woods closed in November.
“We still have a lot of work to do, but this is the first step,” said Kim Bell, the city’s bond attorney.
Bell said upcoming actions will include creating the TIF district, approving a general plan, and then providing 30 days for other tax entities to express their concern if they believe the TIF district would have adverse effects. Another public hearing is scheduled to be held on June 20, when more specific plans will be presented before work begins on the building.
The TIF bond, believed to be the first of its kind in Bourbon County, serves as an incentive for new development, allowing the investors to waive tax increases for a set period of time as they make improvements to the property.
This project is expected to cost about $9.5 million, with the investors hoping to receive about $1.8 million back over 20 years of TIF incentive. In a previous meeting with the Bourbon County Commission, Economic Development Director Rachel Pruitt said they project the company would receive that amount after only nine years.
Because the TIF waives tax increases, the city and county would not lose any money, but will benefit from that increase in revenue after the incentive comes to an end.