The City of Neosho and the Neosho Transportation Development District are set to meet at 1:30 p.m. today in the Division III courtroom of the Newton County Courthouse at which time Associate Circuit Court Judge Kevin Selby is expected to rule on the validity of the TDD.
The hearing is in response to an August petition filed by the City of Neosho, alleging that the TDD is invalid.
While last minute negotiations were held earlier in the week, first with a special session council meeting on Tuesday, and again on Thursday in a closed session TDD meeting, the two parties were unable to reach an agreement by Thursday night, according to TDD board chairman Ray Stipp.
While both sides have expressed interest in pursuing a Community Improvement District, the validity of the TDD, as well as the city’s recent rescission of a cooperative agreement with the TDD have been points of contention.
The TDD board argues that the council’s Nov. 20 vote to rescind the cooperative agreement puts the TDD’s cost-share agreement with the Missouri Department of Transportation in jeopardy, while the city maintains that based on the statute subsection the TDD was formed under combined with who acts as the voters within the TDD, the entity is invalid, therefore, making the cooperative agreement null and void.
The TDD was formed in February 2011, and stretches from Waldo Hatler Drive to Industrial Drive, and from Kodiak Road to just east of Laramie Lane.
The group has been collecting a half-cent sales tax within its borders since Jan. 1.
If the TDD is ruled invalid, both Stipp and Neosho Mayor Richard Davidson have said they are unsure as to what will become of the tax monies collected.