A Tale of Two TIFs: Redeveloping Truman Corners

Thursday, December 15, 2011

A Tale of Two TIFs: Redeveloping Truman Corners

UPDATE: The Grandview TIF Commission met on Dec. 14 and unanimously recommended RED’s redevelopment proposal for the Truman Corners Shopping Center. For more details on RED’s proposal, see below. ARMC’s proposal was not recommended by the TIF Commission. However, the Board of Aldermen will still consider both proposals and is expected to do so on Jan. 10. 
In general, the commissioners said they felt RED’s proposal, while it could potentially put the city at financial risk, was closer to what Grandview’s citizens are demanding: more places to shop, and a totally revamped shopping center. The commission expressed frustration with ARMC, the current owner, saying the company has had a long time to make a success of the center and has not done so, in essence calling ARMC’s proposal “too little, too late.” 
For full coverage of the Commission’s final recommendation, see the Dec. 22 issue of the Jackson County Advocate.
Two developers are courting Grandview for the right to redevelop Truman Corners shopping center.
The city’s TIF Commission on Dec. 7 and 8 heard proposals from RED Development and  ARMC, the center’s current management company. Another developer, WestStar, also submitted a proposal but later pulled the plan.
The commission postponed a recommendation for one week, and met again on Dec. 14, after the Advocate press deadline (see online for update). The Board of Aldermen will make a final decision, but that vote has not yet been scheduled.
RED’s proposal would demolish the current center and start from scratch. It calls for a new grocery store on a pad site in front of the center, a decorative plaza for public events, and potential retailers such as T.J. Maxx. No retailers have been secured, however, since RED is not the current developer. Their plan does assume that Sam’s Club will be leaving Grandview in the near future, and suggests that some of the shopping center’s current retailers would have to be relocated.
RED seeks some $41.3 million in public financing–almost half the total project costs. RED also wants the city to back the bonds for the TIF, which could put the city at risk if the project does not perform as expected.
The American Resurgence Management Company’s (ARMC) proposal is essentially an extensive face-lift of the current center. It includes demolishing the vacant Montgomery Ward building to make way for a new Price Chopper. They also have a letter of intent from Burlington Coat Factory to move into a remodeled version of the current Price Chopper building.
ARMC seeks about $8.6 million in public financing for a $47.9 million project. ARMC did not ask the city to back the bonds, and will bear the burden of any risk for the project.
Read It All at the Jackson County Advocate
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