Mission eyes another development using CID sales tax

The vacant Blockbuster building on Johnson Drive would be part of the re-development along with Hobby Lobby and the Mission West center.

The re-development of the Mission West shopping center and the Blockbuster building across Johnson Drive have been proposed to the city along with a Community Improvement District (CID) to help pay for the renovations. Mission West includes Hobby Lobby, Avelluto’s restaurant, the Department of Motor Vehicles branch, Taco Bell and several other businesses that face Martway next to Avelluto’s, plus the large parking area that separates Hobby Lobby from the other businesses. The Runza restaurant, under a separate owner, is part of the CID petition. The other properties are owned by Block Properties Company.

If approved by the city council, the CID would mean an additional one percent sales tax would be charged at all of those businesses in the district. The extra sales tax revenue would be available to the property owners to invest in rehabilitation of the buildings and the parking lots. Block plans to put more than $2 million into upgrading the properties including renovation, landscaping and infrastructure improvements.

The “pay-as-you-go” CID means the city will not issue bonds. The sales tax money will become available to the developer for allowable expenses under the agreement after it is collected. The tax will expire in 22 years or when the reimbursable costs have been paid.

A public hearing on the CID petition is expected in June. A CID had been filed earlier for the Keystone property farther east on Johnson Drive.