In Monday’s council meeting LTD Enterprises presented their five year assessment of the Liberty Triangle project. This update is a regularly scheduled and required presentation to stay in compliance with the TIF requirements.

In this presentation, the rumor that Hy-Vee was moving into the Liberty Triangle was confirmed. Few details were given other than there was ongoing negotiation to acquire enough property for them to have a gas station which they have in many of their other locations.

This announcement, though understandable, further confirms that the developer of the Triangle has hit a brick wall with respect to bringing in “new” business to Liberty. Clearly Hy-Vee probably played the “Move across I-35” card so the city had little choice in allowing them to move.

It should be noted that by moving into the TIF district the city’s take on sales tax from Hy-Vee will be cut in half. Though, their sales will most likely increase it is highly unlikely they will double. At best the city can hope to break even on the move *if* the old building can be leased fairly quickly to a business that generates sales tax. This news comes on the heels of another rumor that Price Chopper is moving to Kansas City just northwest of the I-35/291 interchange.

Nothing was mentioned with respect to LTD’s plans to add the Clayview property to the TIF. We find it curious that this item, which was mentioned in recent planning and zoning commission minutes, was not covered in the presentation. Liberty Forward urges council to think long and hard about giving up both sales tax and property tax revenue for years to come. This is prime real estate and should not be added to the Triangle TIF. Liberty Forward is also concerned about any back door meetings or discussions that may have occurred about this project; it needs to be discussed out in the open. After the 200 year old trees are gone, and the property is beginning to develop, is not the time to add Tax Increment Financiing.

Liberty Forward highly suggests that the city begin forcing the developer to focus on bringing in new business, and not begin cannibalizing existing Liberty businesses. In addition the city needs to ensure that the businesses that enter the TIF zone are sales tax producing. Many of the existing tenants in the Shoppes at Liberty Triangle are low or non sales tax producing tenants. Tenants that provide services like haircuts, or nails, or mailing services are primarily service businesses and are not required to charge sales tax on those services. Tenants like mortgage companies (CITIBANK) may produce no sales tax at all. The city is giving tax concession on property taxes and sales tax to the developer, it is extremely important that these TIF agreements draw in new business that produces much needed sales tax revenue.

The Trapezoid project was started long before the majority of this city council was elected (all but Martin and Brenton are new). The prior administration really bungled the Triangle from the get go. The current council is left to manage a much maligned venture.

Because the city will probably have to make special dispensation to allow an existing business to move into the Triangle, we urge them to make finding a new tenant or buyer for the old building a part of the requirement in moving into the TIF zone. Let's just take one look at the KFC building that has been sitting for years and imagine if that were the HY-VEE building.

Liberty Forward has committed to do its own financial analysis on the Triangle TIF. We will reserve final judgment on the results until it is complete. However our hypothesis is that the Triangle in the end was a missed opportunity for a much larger revenue source for the city.