Despite the lack of additional tenants in the challenged development anchored by Bass Pro Shops in Independence, the developer and city officials remain optimistic that it will fill out over time.
But at least one potential business within The Falls at Crackerneck Creek near interstates 70 and 470 is out. Independence lawyer Byron Constance, a lead developer in Crackerneck Creek LLC, said that because of changes in the company’s corporate structure, Firestone will not be coming.
“They could come back at any time, and the site is still available to them,” Constance said.
Thirteen months ago, the Independence City Council amended the development’s original tax increment financing plan to allow the sale of automobile services and car repair projects on a specific piece of land at The Falls.
The Falls at Crackerneck Creek development, which includes Bass Pro Shops, Cheddar’s Casual Café, Hobby Lobby and Mardel, has experienced the challenges of the economic recession in not securing a minimum of 300,000 square feet in retail space as promised in the original TIF agreement prior to the souring of the economy.
Independence taxpayers felt that in March as the city paid more than $3.5 million for a debt service payment on bonds that were issued for the development. The existing tenants at The Falls had not generated enough sales tax or property tax revenue to make those payments, and Crackerneck Creek officials said they were unable to repay the city that shortfall.
Those bond payments are due on March 1 and Sept. 1 of each year. More than $2.3 million was due on Sept. 1, and funding from a special allocation fund and trust covered more than $1.1 million of that expense.
The city’s 2011-12 budget included $4,142,859 to pay for the gap in debt service payments on The Falls, reflecting the money due on a bond payment Sept. 1, 2011, and March 1, 2012.
To provide this funding in the 2011-12 budget, multiple actions were taken, including:
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All city personnel, except Power and Light, Water, Water Pollution Control and Tourism department employees, must take 24 hours of unpaid furlough this fiscal year.
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All employees are required to pay an increased share of health and dental insurance premiums.
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The city’s undesignated fund balance was less than 5 percent of the general fund revenues at the start of the fiscal year. A portion of The Falls’ debt service payments are coming from the undesignated fund balance.
The developer also is working with several different likely prospects for The Falls, Constance said, “but nothing has been turned up yet.”
Details are still sketchy on where the development stands in securing Menards. More than eight months ago, Constance said Menards had issued a letter of intent to purchase more than 15 acres in the South Village component of The Falls. Constance remained mum on details in attracting Menards to Independence, saying only that the home improvement store chain is still a likely tenant at The Falls.
City Manager Robert Heacock also would not comment on the progress of a potential agreement with Menards.
Some community members have claimed that when the Independence Events Center Community Improvement District board of directors, in a separate matter, approved a sales tax increase earlier this summer, that move was made, in part, to attract Menards to Independence since its sales tax rates could potentially be lower than the nearby Lowe’s in the Eastland Center development.
In August, the Events Center CID board approved a 0.25 percent sales tax increase within that district, effective July 1, 2012, bringing the CID tax to 0.75 percent. That increase was necessary to help make future debt payments on the construction of the Events Center.
“Again, not able to talk about any specific business or their needs at this point in time in terms of what they might want, but clearly, it’s a competitive business environment,” Heacock said. “What’s happening in sales tax rates for different types of businesses may impact others.
“I think that the rationale given previously for the change in the CID for the Events Center stands on its own. ... Whether or not that has an ancillary positive impact on another business might be true – it may have an impact, or it may not have an impact.”
City officials continue their regular meetings with The Falls developers, as well as seeking input from other developers, Heacock said.
“The state of the economy has certainly dealt commercial development a setback in many respects,” Heacock said. “However, this particular location is extremely marketable with the high volume of traffic and specific project amenities, and the city remains optimistic that it is a matter of time before the project is filled out.”
Constance said he remains pleased with the feedback he has received on existing tenants at The Falls, especially the popular response for Cheddar’s restaurant since its opening earlier this year.
“We can certainly say that since the beginning of the year, there has been a significant increased amount of interest and activity over what there was last year,” Constance said of attracting new businesses. “We’re still moving forward as aggressively as we can to attract new businesses and new retailers. It’s a more optimistic picture now than it was this time a year ago.”
