Community Improvement District could bring retailers to Fort Scott

Friday, April 23, 2010

Things could be looking up for the retail industry in Fort Scott if the city commission approves.

The Fort Scott City Commission will be holding a public hearing on May 18 followed by a vote to create a Community Improvement District where the old Walmart -- currently Tractor Supply Company -- is located.

According to Fort Director of Economic Development Dale Bunn, the district would create a one cent sales tax which would be charged by the retailers in the district which would be used to pay for the renovation and construction of buildings within the district.

"To finance that [the developers] couldn't use rent to do it because they would have to charge such high rents ... it wouldn't be competitive in this market," Bunn said.

Bunn said developers Phil Bundy, of Wichita, and Steven Streubing, of Junction City, are currently working on renovations to the existing building and have verbal agreements with five or six retailers, most of which are new to Fort Scott, who would be moving in. Bunn added, the names of the retailers will be released after Bundy and Streubing get signatures following an approval by the commission on May 18.

The special sales tax would be charged by only the stores in the district, which does not include Tractor Supply Company, according to Bunn. The tax will be paid to the City of Fort Scott who will then pay the money to the developers. The developers will then use the money to make payments on the $2 million in loans to build and renovate the area. Bunn added, the city will be charging a two or three percent processing fee.

"There is nothing on the city's responsibility to be repaid about this," Bunn said. "It's nothing at our liability."

During Tuesday evening's meeting of the Fort Scott City Commission, the idea was well received. Bunn said all the comments made were very positive.

"I don't know how anybody could be negative about getting more people in Fort Scott to shop," Bunn said.