The Joplin Globe, Joplin, MO

Local News

October 30, 2012

Loans sought to fund initial land purchases

Several Joplin area banks are being asked to participate in a consortium to lend the Joplin Redevelopment 353 Corp. money to start buying land for projects that will be part of the city’s tornado recovery.

David Wallace, chief executive officer of the Wallace Bajjali Development Partners, told the 353 board on Tuesday that he is seeking $8 million in loans to start purchasing land for some of the $794 million in projects proposed for Joplin’s redevelopment.

The 353 organization is to be the land bank for the projects and a means to generate money for future projects through land sales. The plan is to fund those purchases with $30 million. Of that, $8 million will come from the city’s federal Community Development block grant funds. The city has been awarded a $45 million grant for tornado recovery. Wallace also is negotiating a commitment from the Missouri Development Finance Board to obtain $22 million in bonds for land purchases.

Access to money would allow pending land deals to close within two to three months, Wallace told the board. Wallace has asked Doug Doll, president of Arvest Bank, to seek commitments from five to nine banks to pitch in on the $8 million loan pool. Wallace is asking that the banks forgo requiring a down payment.

“The banks would usually require 20 percent equity, but they have agreed to make 100 percent loans with only the loan and the land on the balance sheet,” he said.

Wallace said a similar loan consortium for $6 million was done on an Amarillo, Texas, project his firm handled.

The bonds sought from the state would be repaid from taxes generated in a proposed tax increment finance district the master developer proposes. The TIF district would encompass the tornado zone and the downtown district.

Wallace said it does not impose any new taxes on property owners. It would channel the taxes created by the new development for bond payoffs and reinvestment in the development projects. Wallace told the 353 board he believes the projects in the TIF district would generate $60 million in capital.

“Generally, a TIF is created for the benefit of the developer” to repay costs incurred in providing infrastructure and streets within the development that government would normally be obligated to provide. “This TIF is being funded for the benefit of the community,” Wallace said.

The board asked if members could be held liable if any legal issues arose. City Attorney Brian Head said liability insurance is being purchased for the board.

A closed session was held by the board after the discussions on the loans and TIF. The board cited an exemption in the open records law allowing closed discussions on real estate transactions as the reason.

Public meeting

A PUBLIC MEETING on the TIF proposal is scheduled for 5 p.m. Thursday, Nov. 8, at City Hall to inform residents about the details of the proposal.

1
Text Only
Local News
  • outdoor_waylanskuku.jpg Last remaining Ku-Ku

    While other fast food locations along Miami’s portion of Route 66 tend to slow down in the mid-afternoon, Eugene Waylan is still hard at work behind his grill serving up hamburgers to a packed drive through.

    July 31, 2014 2 Photos

  • Grant to fund solar energy system for PSU’s Plaster Center

    An $80,000 grant from Westar Energy will fund solar panels to provide both energy and education at the Robert W. Plaster Center, now under construction at Pittsburg State University.

    August 1, 2014

  • Habitat slates volunteer work days

    In the wake of the 2011 tornado, Joplin Area Habitat for Humanity has been a partner with organizations and individuals in the construction of 86 new houses. But what’s also needed, Executive Director Scott Clayton said, are repairs to area homes.

    July 31, 2014

  • Jasper County voters to decide three offices

    Two incumbents are facing challengers and three candidates are vying for what will be an open county office in primary balloting Tuesday in Jasper County.

    July 31, 2014

  • Brownback names 3 Kansas Board of Regents members

    Gov. Sam Brownback on Friday named a former veteran Kansas House member and two attorneys to the board overseeing the state’s higher education system.

    August 1, 2014

  • Survey seeks views on Joplin’s future goals

    Residents are being asked to fill out a survey on priorities for Joplin’s future. The effort was inspired by a meeting of community leaders last month. Survey forms are available at the Joplin Public Library and online at www.surveymonkey.com/s/jointjoplinareaplanningsurvey.

    July 31, 2014

  • City Council member criticizes master developer in TV interview

    A member of the Joplin City Council told an Amarillo, Texas, newscaster that Joplin’s contracted master developer has “overpromised and underdelivered.” Councilman Benjamin Rosenberg’s comments were included in a two-part report that aired this week on Amarillo television station KVII-TV.

    July 31, 2014

  • Southeast Kansas health center receives federal funding for mental health services

    The Community Health Center of Southeast Kansas was awarded a $250,000 grant Thursday, part of $54.6 million in Affordable Care Act mental health services funding awarded to 221 such centers nationwide.

    July 31, 2014

  • Denied request for National Guard visit draws attention from Fox News host

    A Carthage church finds itself in the middle of a media storm after the Missouri National Guard, citing short notice and time constraints, was not able to fulfill a request last week to appear at the church’s vacation Bible school.

    July 31, 2014

  • Mike Pound 2010.jpg Mike Pound: It’s no dog’s life out there any longer

    All I had to do to understand why the rest of the world hates us was to read the third paragraph of the Washington Post story.

    July 31, 2014 1 Photo

Must Read
Sports
Photos


Facebook
Poll

Missouri's sales tax-free weekend begins Friday. Do you plan purchases around this weekend?

A. Yes.
B. No.
     View Results
Opinion
Twitter Updates
Follow us on twitter