City of Blue Springs, Missouri Tax Increment Financing 2007 Annual Report

Transcription

1 City of Blue Springs, Missouri Tax Increment Financing 2007 Annual Report

2 City of Blue Springs, Missouri Tax Increment Financing 2007 Annual Report Table of Contents Page Introduction & Commission Members TIF Projects 7 Highway and 40 Highway 4 Adams Farm 12 Copperleaf Village Shopping Center 18 Fall Creek Financial Statements Statement of Revenues, Expenditures and Changes in Fund Balance 32 Balance Sheet 35

3 Introduction The Tax Increment Financing Commission of Blue Springs, Missouri was created September 4, 1991 by the Board of Aldermen of the City of Blue Springs, Missouri (Ordinance No. 2111), for purposes of exercising any and all powers enumerated or authorized pursuant to the Real Property Tax Increment Allocation Redevelopment Act, Section et. al, R.S. Mo. The Commission has the power and authority to hold public hearings as required pursuant to the Real Property Tax Increment Allocation Redevelopment Act and for making recommendations to the City Council and the City of Blue Springs, Missouri concerning the adoption of Redevelopment Areas and Redevelopment Projects and the designation of Redevelopment Project Areas TIF Commission Members Chuck Kleinhagen, Chair David Witt (ReAppointed 7/04) (ReAppointed 7/04) Alan Franklin, CoChair Bonnie Hutchcroft (Appointed 8/05) (Appointed 5/07) Bud Whisler Jeanie Lauer (ReAppointed 7/04) (Relieved of Appointment 5/07) Steve Schmitz Mark Trosen (ReAppointed 7/04) (Reappointed 9/05) Bill Cowling Dave Wright Blue Springs RIV School District Blue Springs RIV School Board 1801 W. Vesper St W. Vesper St. Blue Springs, MO Blue Springs, MO Chief Steve Westermann Jeremy Willmoth Central Jackson County Fire Protection Dist. Jackson County, Chief Administrative Officer 805 NE Jefferson 415 E. 12 th St., #200 Blue Springs, MO Kansas City, MO 64106

4 City of Blue Springs, Missouri 2007 Tax Increment Financing Annual Report Section 1 Description of the Plan and Project 1 Name of Municipality that approved the TIF Plan or Project City of Blue Springs, Missouri Highway and 40 Highway Tax Increment Financing Redevelopment Name of Plan or Project Plan Report Period October 1, 2006 to September 30, 2007 Name of person who prepared this Annual Report Rebecca Smith 5 Contact Information (d) (e) (f) (g) (h) (i) (j) City Contact Agency Person Phone Fax Address Private Sector Developer Person Phone Fax Address City of Blue Springs Finance Department Christine Cates, CPA ccates@bluespringsgov.com The R.H. Johnson Company Bob Johnson Original Date Plan/Project Approval Ordinance Number (if available) Most Recent Plan Amendment (if any) Ordinance Number (if available) State House District State Senate District School District June 18, NA NA 55 8 Blue Springs RIV 13 General location of Area or Project Area: Approximately 25 acres generally located at the northeast and southeast corners of the U.S. Highway 40 and Missouri Highway 7 intersection. Project Area A (HyVee) of approximately acres and Project Area B (former WalMart) of approximately acres. 14 Description of Plan/Project: The plan proposes to remediate blighting conditions through a twophase Redevelopment Project consisting of 1) constructing a new firstclass retail façade for the existing HyVee grocery store, constructing an approximately 4,000 square foot expansion to the HyVee facility, and constructing a freestanding HyVee convenience store with gas pumps, 2) renovating the former WalMart facility, an approximately 130,000 square foot big box store to accommodate approximately six new retail businesses, 3) developing two pad sites along the Missouri 7 Highway frontage to locate restaurant and bank uses, and 4) constructing the necessary infrastructure appurtenant to these improvements (collectively the "Redevelopment Projects"). The HyVee improvements will occur as part of the Redevelopment Project A, and the WalMart rehabilitation and pad site development will occur as part of Redevelopment Project B. 15 Plan/Project Status: [ ] Starting Up (d) [ ] FullyOperational [ ] Seeking Developer (e) [ ] Inactive [X ] Under Construction (f) [ ] District Dissolved

5 16 Area Type: [X] Blight [ ] Conservation [ ] Economic Development 17 How was the "ButFor" determination made? (d) (e) [X ] Project had unusual/extraordinary costs that made the project financially unfeasible in the market place. [ ] Project required significant public infrastructure investment to remedy existing inadequate conditions. [ ] Project required significant public infrastructure to construct adequate capacity to support the project. [ ] Project required parcel assembly and/or relocation costs. [ ] Other (describe): 18 Major Development Obstacles to be Overcome: None 19 Briefly describe the Project's Public Benefits: The Redevelopment Project will positively address four of the Economic Development Corporation's development goals as identified in the 2006 Annual Business Plan: 1) increase capital investment in the Priority Focus Area, 2) attract retail developers for redevelopment in the Priority Focus Area, 3) assist in supporting market interest in leasing vacant business space within the Priority Focus Area, and 4) expand the City's tax base through business development attraction and reinvestment that will generate a broader tax revenue. 20 Description of Agreements with the Developer: Resolution TIF Funding Agreement between the City and The R.H. Johnson Company, 3/5/07. Ordinance 4073 TIF Financing Plan approved and Redevelopment Agreement between the City and The R.H. Johnson Company, 6/18/07. Resolution Assignment and Assumption Agreement between the City and The R.H. Johnson Company, WMBS Holdings, Inc. for Redevelopment Project B, 9/5/07. Ordinance 4093 Agreement between the City and The R.H. Johnson Company to execute Plan Area A, 9/5/07. Ordinance 4094 Agreement between the City and The R.H. Johnson Company to execute Plan Area B, 9/5/07. Resolution Collateral Assignment of TIF Contract Agreement between the City and WMBS Holdings, Inc., First National Bank of Kansas, 9/17/ Description of any agreements with the affected taxing districts: The Blue Springs RIV School District will receive from the Special Allocation Fund, prior to payment of reimbursable project costs or obligations, a distribution of 10% of the school district's mill levy at the time of the plan activation multiplied by the annual increase in assessed value of real property within each Redevelopment Project Area over the Total Initial Equalized Assessed Value of real property within each Redevelopment Project Area. Current Period Total 22 Number of relocated residences due to TIF Project: Number of relocated businesses due to TIF Project: Number of parcels acquired through use of eminent domain power: Identify any businesses that have relocated to the Redevelopment Area (in this fiscal year): Name Address Phone Number Primary Business Line Relocated from What City/County?

6 Actual to Projected Date 26 Estimate of New Jobs: NA NA 27 Estimate of Retained Jobs: NA NA Section 2 Tax Increment Financing Revenues 28 TIF Revenue Deposits to the Special Allocation Fund as of the Report Date: Current Period Total Payments in Lieu of Taxes (PILOTS) Economic Activity Taxes (EATS): 3,090 3,090 Total as of Report Date: Project B only 3,090 3, Total Project Costs Funded by TIF and Amount Paid on Debt Service (d) (e) (f) Total Project Costs Funded by TIF: Public Infrastructure (streets, utilities, etc.) Site Development (grading, dirt moving, etc.) Rehab of existing buildings Acquisition of land or buildings Other (specify): Other (specify): Total Project Costs Funded by TIF: Current Period Total Amount Paid on Debt Service Current Period Total (g) (h) Payment on principal & interest on bond debt: Reimbursement to Developer for eligible costs: (i) Reimbursement to City/County for eligible cost: 30 Anticipated TIF Reimbursable Costs (only include hard costs; not interest or bond issuance costs) Public Infrastructure & Site Development Costs (utility extensions, road improvements, stormwater, demolition, grading, etc.) Property Acquisition and Relocation Costs 3,634,000 Projects A & B (d) (e) Project Implementation Costs (including professional fees) Other (specify): Other (specify): 586,000 Projects A & B (f) Other (specify): 31 Total Anticipated TIF Reimbursable Costs 4,220,000 Projects A & B 32 TIF Financing Method [X ] Payasyougo (e) [ ] TIF bond [ ] General obligation bonds (f) [ ] Industrial revenue bond [ ] TIF notes (g) [ ] Other bond

7 (d) [ ] Loan (h) [ ] Other bond Maturity of TIF Obligations (term of the TIF payout) 33 Original estimate (# of years to retirement) Current anticipated estimate (# of years to retirement) 23 Estimated Increase in Tax Generation 35 Original assessed value of the Redevelopment Project (as stated in plan) (Projects A & B) 3,032, Assessed valuation of Redevelopment Project (at end of report period) 3,039, Anticipated assessed value at time of district termination 6,522, Total amount of base year EATS 8,702 Project B only 39 Total amount of base year PILOTS 139,151 Project B only 40 Total annual EATS anticipated at time of district termination 4,607,450 Projects A & B 41 Total annual PILOTS anticipated at time of district termination 4,963,727 Projects A & B 42 Percentage of EATS captured 0% Projects A & B 43 Total years anticipated to capture EATS 23 Projects A & B 44 Percentage of PILOTS captured 0% Projects A & B 45 Total years anticipated to capture PILOTS 23 Projects A & B

8 7 Highway & 40 Highway (Projects A & B)

9 7 Highway & 40 Highway (Project A)

10 7 Highway & 40 Highway (Project B)

11 7 Highway & 40 Highway (Project B) AFTER Redevelopment *Goodwill and Deals opened in FY Corresponding financials will be reported in FY 2008.

12 City of Blue Springs, Missouri 2007 Tax Increment Financing Annual Report Section 1 Description of the Plan and Project Name of Municipality that approved the TIF Plan or Project City of Blue Springs, Missouri Name of Plan or Project Adams Farm Tax Increment Financing Plan Report Period October 1, 2006 to September 30, Name of person who prepared this Annual Report Rebecca Smith 5 Contact Information (d) (e) (f) (g) (h) (i) (j) City Contact Agency City of Blue Springs Finance Department Person Christine Cates, CPA Phone Fax Address ccates@bluespringsgov.com Private Sector Developer Blue Springs Development Two, Inc., c/o RED Development, LLC Person Dan Lowe Phone Fax Address Original Date Plan/Project Approval February 20, 2007 Ordinance Number (if available) 4036 Most Recent Plan Amendment (if any) NA Ordinance Number (if available) NA State House District 55 State Senate District 8 School District Blue Springs RIV 13 General location of Area or Project Area: The Redevelopment Area, approximately 65 acres, is generally bound by U.S. Interstate 70 on the north; Adams Dairy Parkway on the west (extending further west along northeast Coronado Drive to encompass a section of land between Coronado Drive and U.S. Interstate 70); R.D. Mize Road on the south; and the Marriott Hotel and Convention Center property boundary and Adams Pointe Golf Course boundary on the east in Jackson County, Blue Springs, Missouri.

13 14 Description of Plan/Project: The Redevelopment Area will be developed as a series of three Redevelopment Projects. Redevelopment Project A is generally located at the southeast quadrant of Adams Dairy Parkway and Coronado Drive and will consist of approximately 569,375 square feet of retail space, which will include two anchor stores, a number of midsized stores, smaller retail shops and pad sites available for commercial use. Redevelopment Project B, generally located at the northeast quadrant of Adams Dairy Parkway and Coronado Drive, will consist of approximately 34,710 square feet of retail and restaurant development. Redevelopment Project C is located at the northwest quadrant of Adams Dairy Parkway and Coronado Drive and will consist of approximately 31,260 square feet of commercial retail and restaurant space. In addition to the construction of the Redevelopment Projects, this plan provides for the construction of certain public infrastructure improvements associated with the Redevelopment Area and as required by the City. The proposed public infrastructure improvements include the widening and construction of new traffic lanes on Adams Dairy Parkway, Coronado Drive, R.D. Mize Road and adjustments to the offramp from U.S. Interstate Plan/Project Status: [ ] Starting Up (d) [ ] FullyOperational [ ] Seeking Developer (e) [ ] Inactive [X ] Under Construction (f) [ ] District Dissolved 16 Area Type: [X ] Blight [ ] Conservation [ ] Economic Development 17 How was the "ButFor" determinaton made? (d) (e) [X ] Project had unusual/extraordinary costs that made the project financially unfeasible in the market place. [ ] Project required significant public infrastructure investment to remedy existing inadequate conditions. [ ] Project required significant public infrastructure to construct adequate capacity to support the project. [ ] Project required parcel assembly and/or relocation costs. [ ] Other (describe): 18 Major Development Obstacles to be Overcome: The Redevelopment Area consists of vacant land containing several vacant structures, including a number of single family homes, abandoned farm structures, and storage buildings. Several of the properties within the Redevelopment Area were formerly located outside the corporate limits of the City of Blue Springs. Most of these properties have since been voluntarily annexed into the City, with the exception of one parcel that is currently owned by Lawrence and Ruby Jeanne Groves, and is located near the northeast corner of Adams Dairy Parkway and R.D. Mize Road within Redevelopment Project A. The Developer currently has a portion of this property that is necessary for the project under contract and will voluntarily annex this portion of the property into the City of Blue Springs once it is purchased. The plan proactively contemplates the voluntary annexation of this parcel to be included within the legal boundary of the Redevelopment Area through a future amendment to the plan. 19 Briefly describe the Project's Public Benefits: The implementation of this plan will lead to an improved transportation infrastructure to provide traffic flow access into the Redevelopment Area and the construction of an approximately 606,568 square foot upscale retail development that will share a mix of large anchor and lifestyle retail and restaurant tenants that will promote a higher level of economic activity, resulting in increased employment and an enhanced tax base for the City.

14 20 Description of Agreements with the Developer: Resolution Tax Increment Financing (TIF) Funding Agreement between the City and Blue Springs Development Two, LLC, c/o Red Development, LLC, 11/20/06. Ordinance 4036 TIF Plan approved, Redevelopment Area established, and Blue Springs Springs Development Two, LLC designated as the Developer of Redevelopment Projects A, B, and C, 2/20/07. Ordinance 4039 TIF Redevelopment Agreement between the City and Blue Springs Development Two, LLC for the TIF Plan, 3/5/07. Resolution First Amendment to the TIF Contract between the City and Blue Springs Development Three, Inc. regarding the Amended Adams Farm TIF Plan, 9/5/ Description of any agreements with the affected taxing districts: In recognition that the City of Blue Springs will experience residential and student enrollment growth in the Blue Springs RIV School District as a result of the Adams Farm Redevelopment Project, during the plan's existence, the Tax Increment Financing Commission will dedicate annually from the Special Allocation Fund a capital contribution in the amount equal to 22.5% of the District's then existing mill levy multiplied by the increased asessed value of property within each Project Area as Project Areas are activated during the life of the plan. Current Period Total 22 Number of relocated residences due to TIF Project: Number of relocated businesses due to TIF Project: Number of parcels acquired through use of eminent domain power: Identify any businesses that have relocated to the Redevelopment Area (in this fiscal year): Name Address Phone Number Primary Business Line Relocated from What City/County? Projected Actual to Date 26 Estimate of New Jobs: 1, Estimate of Retained Jobs: NA NA Section 2 Tax Increment Financing Revenues 28 TIF Revenue Deposits to the Special Allocation Fund as of the Report Date: Payments in Lieu of Taxes (PILOTS) Economic Activity Taxes (EATS): Total as of Report Date: Current Period Total 29 Total Project Costs Funded by TIF and Amount Paid on Debt Service Total Project Costs Funded by TIF: Current Period Total Public Infrastructure (streets, utilities, etc.) Site Development (grading, dirt moving, etc.) Rehab of existing buildings

15 (d) (e) (f) Acquisition of land or buildings Other (specify): Other (specify): Total Project Costs Funded by TIF: Amount Paid on Debt Service Current Period Total (g) Payment on principal & interest on bond debt: (h) (i) Reimbursement to Developer for eligible costs: Reimbursement to City/County for eligible cost: 30 Anticipated TIF Reimbursable Costs (only include hard costs; not interest or bond issuance costs) Public Infrastructure & Site Development Costs (utility extensions, road improvements, stormwater, demolition, grading, etc.) 16,640,380 Property Acquisition and Relocation Costs 1,383,933 Project Implementation Costs (including professional fees) 4,868,194 (d) (e) (f) 31 Other (specify): Engineering, Architectural, Legal, Commissions 2,515,840 Other (specify): City Reimb. Exp & Interest Carry 3,031,130 Other (specify): Total Anticipated TIF Reimbursable Costs 28,439, TIF Financing Method [ ] Payasyougo (e) [X ] TIF bond [ ] General obligation bonds (f) [ ] Industrial revenue bond [ ] TIF notes (g) [ ] Other bond (d) [ ] Loan (h) [ ] Other bond Maturity of TIF Obligations (term of the TIF payout) 33 Original estimate (# of years to retirement) Current anticipated estimate (# of years to retirement) 22 Estimated Increase in Tax Generation 35 Original assessed value of the Redevelopment Project (as stated in TIF Plan) 260, Assessed valuation of Redevelopment Project (at end of report period) Anticipated assessed value at time of district termination 24,664, Total amount of base year EATS To be determined Total amount of base year PILOTS To be determined Total annual EATS anticipated at time of district termination 44,224,783 Total annual PILOTS anticipated at time of district termination 31,916,711 Percentage of EATS captured 0% Total years anticipated to capture EATS Percentage of PILOTS captured 22 0% Total years anticipated to capture PILOTS 22

16

17 Adams Farm (PreConstruction)

18 City of Blue Springs, Missouri 2007 Tax Increment Financing Annual Report Section 1 Description of the Plan and Project 1 Name of Municipality that approved the TIF Plan or Project City of Blue Springs, Missouri Name of Plan or Project Report Period Name of person who prepared this Annual Report Copperleaf Village Shopping Center Tax Increment Financing Plan October 1, 2006 to September 30, 2007 Rebecca Smith 5 Contact Information (d) (e) (f) (g) (h) (i) (j) City Contact Agency Person Phone Fax Address Private Sector Developer Person Phone Fax Address City of Blue Springs Finance Department Christine Cates, CPA ccates@bluespringsgov.com Copperleaf Village, LLC Kevin Fitzpatrick Original Date Plan/Project Approval Ordinance Number (if available) Most Recent Plan Amendment (if any) Ordinance Number (if available) State House District State Senate District School District August 29, NA NA 54 8 Blue Springs RIV 13 General location of Area or Project Area: Approximately 4.5 acres of property located in an area generally described as the northwest quadrant of the intersection of Missouri Highway 7 and R.D. Mize Road and bounded on the north by Hearnes Avenue, R.D. Mize Road on the south, and Missouri Highway 7 on the east, formerly known as the I70 Center. 14 Description of Plan/Project: The scope of this project involves the redevelopment of a retail center that comprises a series of current developments ranging in age from 3045 years and impacts 8 parcels of property located along Missouri Highway 7 between R.D. Mize Road and Hearnes Avenue. The inline shops contained in the shopping center will be enlarged and upgraded and the existing 3 pad sites will be reconfigured and redeveloped to be consistent with the tenant mix, access and visibility of the upgraded shopping center. 15 Plan/Project Status: [ ] Starting Up (d) [ ] FullyOperational [ ] Seeking Developer (e) [ ] Inactive [X ] Under Construction (f) [ ] District Dissolved

19 16 Area Type: [X ] Blight [ ] Conservation [ ] Economic Development 17 How was the "ButFor" determinaton made? (d) (e) [X ] Project had unusual/extraordinary costs that made the project financially unfeasible in the market place. [ ] Project required significant public infrastructure investment to remedy existing inadequate conditions. [ ] Project required significant public infrastructure to construct adequate capacity to support the project. [X ] Project required parcel assembly and/or relocation costs. [ ] Other (describe): 18 Major Development Obstacles to be Overcome: In order for this project to proceed, the Developer is seeking to purchase three residential properties to the north of the shopping center along Hearnes Avenue that would allow for the expansion of the principal strip retail center with the addition of approximately 4,700 square feet of space. In addition, the Developer is seeking to acquire two commercial properties located along Missouri Highway Briefly describe the Project's Public Benefits: The project will consist of 7.5 million in capital improvements to the substantially deteriorated 20,820 square foot center that has met 5 conditions of statutory blight, the legal requirement for triggering the "But For" clause of TIF, and the addition of a new median along Missouri Highway 7 in front of the renovated shopping center. The support of this redevelopment with TIF will encourage private investment to produce a longterm, orderly pattern of quality retail and service commerical uses in and adjacent to the Redevelopment Areas. The redevelopment will also enhance the tax base for the City and other taxing jurisdictions having territory within the Redevelopment Area. 20 Description of Agreements with the Developer: Ordinance 3892 Copperleaf Village Shopping Center Tax Increment Financing (TIF) Plan approved, Redevelopment Area established, and Tallgrass Shopping Center, LLC designated as Developer, 8/29/05. Ordinance 3910 TIF Redevelopment Agreement between City and Tallgrass Shopping Center, LLC, 9/19/05. Ordinance 3939 Acquisition Funding Agreement between City and Copperleaf Village, LLC, 12/19/ Description of any agreements with the affected taxing districts: None Current Period Total 22 Number of relocated residences due to TIF Project: Number of relocated businesses due to TIF Project: Number of parcels acquired through use of eminent domain power: Identify any businesses that have relocated to the Redevelopment Area (in this fiscal year): Name Address Phone Number Primary Business Line Relocated from City/County? Projected Actual 26 Estimate of New Jobs: NA NA

20 27 Estimate of Retained Jobs: NA NA Section 2 Tax Increment Financing Revenues 28 TIF Revenue Deposits to the Special Allocation Fund as of the Report Date: Current Period Payments in Lieu of Taxes (PILOTS) Economic Activity Taxes (EATS): 14,202 14,202 Total as of Report Date: 14,202 14,202 * Tax Revenue is adjusted to 14,202 for 2007 and will be reflected on the 2008 financial statements. Total 29 Total Project Costs Funded by TIF and Amount Paid on Debt Service (d) (e) (f) Total Project Costs Funded by TIF: Public Infrastructure (streets, utilities, etc.) Site Development (grading, dirt moving, etc.) Rehab of existing buildings Acquisition of land or buildings Other (specify): Other (specify): Total Project Costs Funded by TIF: Current Period Total Amount Paid on Debt Service Current Period Total (g) Payment on principal & interest on bond debt: (h) Reimbursement to Developer for eligible costs: (i) Reimbursement to City/County for eligible cost: 30 Anticipated TIF Reimbursable Costs (only include hard costs; not interest or bond issuance costs) Public Infrastructure & Site Development Costs (utility extensions, road improvements, stormwater, demolition, grading, etc.) Property Acquisition and Relocation Costs 836, ,195 (d) (e) (f) Project Implementation Costs (including professional fees) Other (specify): Other (specify): Other (specify): 69, Total Anticipated TIF Reimbursable Costs 1,700, TIF Financing Method [X ] Payasyougo (e) [ ] TIF bond [ ] General obligation bonds (f) [ ] Industrial revenue bond

21 [ ] TIF notes (g) [ ] Other bond (d) [ ] Loan (h) [ ] Other bond Maturity of TIF Obligations (term of the TIF payout) 33 Original estimate (# of years to retirement) Current anticipated estimate (# of years to retirement) 18 Estimated Increase in Tax Generation 35 Original assessed value of the Redevelopment Project (per plan) 612, Assessed valuation of Redevelopment Project (at end of report period) 1,285, Anticipated assessed value at time of district termination 2,442, Total amount of base year EATS Total amount of base year PILOTS 58,847 54, Total annual EATS anticipated at time of district termination Total annual PILOTS anticipated at time of district termination 1,523,830 1,815, Percentage of EATS captured 1% 43 Total years anticipated to capture EATS Percentage of PILOTS captured 0% 45 Total years anticipated to capture PILOTS 18

22 Copperleaf Village Shopping Center

23 Copperleaf Village Shopping Center BEFORE Redevelopment

24 Copperleaf Village Shopping Center AFTER Redevelopment *New York, NY Fresh Deli opened in FY Corresponding financials will be reported in FY 2008.

25 City of Blue Springs, Missouri 2007 Tax Increment Financing Annual Report Section 1 Description of the Plan and Project Name of Municipality that approved the TIF Plan or Project Name of Plan or Project Report Period Name of person who prepared this Annual Report City of Blue Springs, Missouri Fall Creek Tax Increment Financing Plan October 1, 2006 to September 30, 2007 Rebecca Smith 5 Contact Information (d) (e) (f) (g) (h) (i) (j) City Contact Agency Person Phone Fax Address Private Sector Developer Person Phone Fax Address City of Blue Springs Finance Department Christine Cates, CPA ccates@bluespringsgov.com Top Star, LLC Tim Harris Original Date Plan/Project Approval Ordinance Number (if available) Most Recent Plan Amendment (if any) Ordinance Number (if available) State House District State Senate District School District November 30, June 5, Blue Springs RIV 13 General location of Area or Project Area: The Redevelopment Area is generally bounded by Missouri Highway 7 on the east, the southern branch of Clark Road on the south, Luttrell Road on the west and White Oak Shopping Center on the north. 14 Description of Plan/Project: The Redevelopment Area contains approximately 40 acres that will be developed in separate Redevelopment Project Areas. Redevelopment Project Areas I and II will be the Developer's portion and the remaining portion of the Redevelopment Area will be available for development by other developers. Redevelopment Project Area 1 consists of the construction of a retail shopping center comprised of multiple buildings containing approximately 202,000 square feet of gross leasable area, at least one office building, parking for approximately 1,500 vehicles and the construction of related necessary public improvements such as sidewalks, roadwidening, traffic control improvements and utility infrastructure. Redevelopment Project II consists of construction of an upscale residential community of approximately 150 units and the construction of related necessary public improvements such as sidewalks, roadwidening, traffic control improvements and utility infrastructure. Redevelopment Project II will not adopt tax increment financing, but will constitute reimbursable project costs for the public improvements. 15 Plan/Project Status:

26 [ ] Starting Up (d) [ ] FullyOperational [ ] Seeking Developer (e) [ ] Inactive [X ] Under Construction (f) [ ] District Dissolved 16 Area Type: [X ] Blight [ ] Conservation [ ] Economic Development 17 How was the "ButFor" determinaton made? (d) (e) [X] Project had unusual/extraordinary costs that made the project financially unfeasible in the market place. [ ] Project required significant public infrastructure investment to remedy existing inadequate conditions. [ ] Project required significant public infrastructure to construct adequate capacity to support the project. [ ] Project required parcel assembly and/or relocation costs. [ ] Other (describe): 18 Major Development Obstacles to be Overcome: A significant portion of the Redevelopment Area is vacant land that has not been developed due to existing physical and market conditions. The site improvements within the Redevelopment Area are deteriorated and include an abandoned gasoline station, vacant and abandoned buildings and substandard single family housing units. The Redevelopment Area contains defective or inadequate street layout and insanitary conditions as well as conditions which endanger life or property by fire and and other causes. The predominance of these factors individually and in combination cause the Redevelopment Area to constitute an economic and social liability and a menace to the public health, safety, morals, and welfare in its present condition and use. 19 Briefly describe the Project's Public Benefits: The Redevelopment Plan proposes improvements to infrastructure and development of an upscale retail area that will stimulate the City's economy and improve blighted conditions. 20 Description of Agreements with the Developer: Ordinance 3098 First Amended and Restated Fall Creek Tax Increment Financing Plan, 11/30/98. Ordinance 3113 Development Agreement between the City and Parker Construction (Developer), 1/18/99. Ordinance 3206 First Amendment to First Amended and Restated Fall Creek Tax Increment Financing Plan, 6/5/00. Ordinance 3207 First Amendment to Development Agreement for the Mall at Fall Creek, 6/5/00. Ordinance 3856 Second Amended and Restated Development Agreement between the City and Top Star, LLC, 1/12/05. Ordinance 4030 Third Amendment to the Development Agreement between the City and Top Star, LLC, 2/5/ Description of any agreements with the affected taxing districts: None. Current Period Total 22 Number of relocated residences due to TIF Project: Number of relocated businesses due to TIF Project: Number of parcels acquired through use of eminent domain power: Identify any businesses that have relocated to the Redevelopment Area (in this fiscal year):

27 Name Address Phone Number Primary Business Line Relocated from What City/County? Projected Actual to Date 26 Estimate of New Jobs: 200 unknown 27 Estimate of Retained Jobs: NA NA Section 2 Tax Increment Financing Revenues 28 TIF Revenue Deposits to the Special Allocation Fund as of the Report Date: Current Period Payments in Lieu of Taxes (PILOTS) 251,569 2,090,556 Economic Activity Taxes (EATS): 85, ,441 Total as of Report Date: 337,312 2,619,997 Total 29 Total Project Costs Funded by TIF and Amount Paid on Debt Service (d) (e) (f) Total Project Costs Funded by TIF: Public Infrastructure (streets, utilities, etc.) Site Development (grading, dirt moving, etc.) Rehab of existing buildings Acquisition of land or buildings Other (specify): Other (specify): Total Project Costs Funded by TIF: Current Period Total 1,049, , , ,438 2,600,000 Amount Paid on Debt Service Current Period Total (g) Payment on principal & interest on bond debt: 428,155 2,370,697 (h) (i) Reimbursement to Developer for eligible costs: Reimbursement to City/County for eligible cost: 30 Anticipated TIF Reimbursable Costs (only include hard costs; not interest or bond issuance costs) Public Infrastructure & Site Development Costs (utility extensions, road improvements, stormwater, demolition, grading, etc.) Property Acquisition and Relocation Costs 1,877, ,000 (d) (e) Project Implementation Costs (including professional fees) Other (specify): Other (specify): 322,438

28 (f) Other (specify): 31 Total Anticipated TIF Reimbursable Costs 2,600, TIF Financing Method [ ] Payasyougo (e) [ ] TIF bond [ ] General obligation bonds (f) [ ] Industrial revenue bond [ ] TIF notes (g) [X] Other bond ( CID Bonds) (d) [ ] Loan (h) [ ] Other bond Maturity of TIF Obligations (term of the TIF payout) 33 Original estimate (# of years to retirement) Current anticipated estimate (# of years to retirement) 15 Estimated Increase in Tax Generation 35 Original assessed value of the Redevelopment Project 25, Assessed valuation of Redevelopment Project (at end of report period) 2,563, Anticipated assessed value at time of district termination 9,500, Total amount of base year EATS 39 Total amount of base year PILOTS 30, Total annual EATS anticipated at time of district termination 17,928, Total annual PILOTS anticipated at time of district termination 23,249, Percentage of EATS captured 3% 43 Total years anticipated to capture EATS Percentage of PILOTS captured 9% 45 Total years anticipated to capture PILOTS 15

29 Fall Creek

30 Fall Creek AFTER Redevelopment *bella capelli opened in FY Corresponding financials will be reported in FY 2008.

31 Fall Creek AFTER Redevelopment *Culver s opened in FY Corresponding financials will be reported in FY 2008.

32 Blue Springs, Missouri Tax Increment Financing TIF Project Funds Combining Statement of Revenues, Expenditures and Change in Fund Balance For the Year Ended September 30, 2007 Copperleaf Village Shopping Center Fall Creek Total Revenues Taxes* 7, , ,776 Interest 9,260 9,260 Other 55,489 55,489 Total Revenues 63, , ,525 Expenditures: Current: General Government 2,455 2,455 Debt service: Principal Retirement 135, ,000 Interest and Fiscal Charges 290, ,700 Total Expenditures 428, ,155 Excess of Revenues Over/(Under) Expenditures 63,227 (80,857) (17,630) Other Financing Sources (uses): Operating Transfers (Out) (56) (3,614) (3,670) Total Other Financing Sources (uses) (56) (3,614) (3,670) Net Change in Fund Balances 63,171 (84,471) (21,300) Fund Balance Beginning of Year (75,489) 394, ,322 Fund Balance End of Year (12,318) 310, ,022 * Tax Revenue for Copperleaf is adjusted to 14,202 for 2007 and will be reflected on the 2008 financial statements.

33 Blue Springs, Missouri Tax Increment Financing Capital Projects Fund Statement of Revenues, Expenditures and Change in Fund Balance For the Year Ended September 30, 2007 Project: Copperleaf Village Shopping Center Revenues: Taxes* 7,738 Interest Other 55,489 Total Revenues 63,227 Expenditures: Current: General Government 75,489 Professional Services Debt service: Principal Retirement Interest and Fiscal Charges Total Expenditures 75,489 Excess of Revenues Over/(Under) Expenditures 63,227 (75,489) Other Financing Sources (uses): Operating Transfers In OperatingTransfers Out (56) Total Other Financing Sources (56) Net Change in Fund Balances 63,171 (75,489) Fund Balance Beginning of Year (75,489) Fund Balance End of Year (12,318) (75,489) * Tax Revenue is adjusted to 14,202 for 2007 and will be reflected on the 2008 financial statements.

34 Blue Springs, Missouri Tax Increment Financing Capital Projects Fund Statement of Revenues, Expenditures and Change in Fund Balance For the Year Ended September 30, 2007 Project: Fall Creek Revenues: Taxes 338, ,319 Intergovernmental Charges for Services Interest 9,260 1,955 Other Total Revenues 347, ,274 Expenditures: Current: General Government 2,455 2,542 Professional Services Debt service: Principal Retirement 135, ,000 Interest and Fiscal Charges 290, ,950 Total Expenditures 428, ,492 Excess of Revenues Over/(Under) Expenditures (80,857) (108,218) Other Financing Sources (uses): Operating Transfers In OperatingTransfers (Out) (3,614) (3,411) Total Other Financing Sources (3,614) (3,411) Net Change in Fund Balances (84,471) (111,629) Fund Balance Beginning of Year 394, ,440 Fund Balance End of Year 310, ,811

35 Blue Springs, Missouri Tax Increment Financing TIF Projects Fund Combined Balance Sheet For the Year Ended September 30, 2007 Assets Copperleaf Village Shopping Center Fall Creek Total Cash and Investments 28,926 28,926 Due from Other Governments 7,392 7,392 Prepaid Items 274, ,022 Total Assets 310, ,340 Liabilities and Fund Balance Liabilities: Accounts Payable Deferred Property Tax Revenue Due to Other Funds 12,318 12,318 Interfund Payable Total Liabilities 12,318 12,318 Fund Balance (deficit): Reserved for Encumbrances 274, ,022 Unreserved Undesignated Capital Projects Fund (12,318) 36,318 24,000 Total Fund Balance (Deficit) (12,318) 310, ,022 Total Liabilities and Fund Balance 310, ,340

36 Blue Springs, Missouri Tax Increment Financing Capital Projects Fund Balance Sheet For the Year Ended September 30, 2007 Project: Copperleaf Village Shopping Center Assets Cash and Investments Due from Other Governments Prepaid items Total Assets Liabilities and Fund Balance Liabilities: Accounts Payable Deferred Property Tax Revenue Due to Other Funds Inferfund Payable 12,318 75,489 Total Liabilities 12,318 75,489 Fund Balance (deficit): Reserved for Encumbrances Unreserved Undesignated Captial Projects Fund (12,318) (75,489) Total Fund Balance (Deficit) (12,318) (75,489) Total Liabilities and Fund Balance

37 Blue Springs, Missouri Tax Increment Financing Capital Projects Fund Balance Sheet For the Year Ended September 30, 2007 Project: Fall Creek Assets Cash and Investments 28,926 25,367 Due from other governments 7,392 7,230 PrePaid items 274, ,214 Total Assets 310, ,811 Liabilities and Fund Balance Liabilities: Accounts Payable Deferred Property Tax Revenue Total Liabilities Fund Balance (deficit): Reserved for Encumbrances 274, ,214 Unreserved Undesignated Capital Projects Fund 36,318 32,597 Total Fund Balance (Deficit) 310, ,811 Total Liabilities and Fund Balance 310, ,811