The Big Spring Plaza Community Improvement District has collected $316,513 in tax revenue since its inception in 2006, according to information provided to the City of Neosho by CID attorney Carl Yates.
Troy Royer, Neosho City Manager, said information was provided to the city late Wednesday, following an open-records request made early last week.
The amount collected came into question in recent city council meetings, as the city began looking further into why they were not being paid the tax funds they say are owed to them by the CID.
Neosho Mayor Richard Davidson said the city believes they should be receiving 50 percent of the 1 percent sales tax revenue, because the CID is located within a tax increment financing (TIF) district.
However, Yates, of the Springfield law firm Yates, Mauck, Bohrer, Elliff and Fels, said he cannot confirm that the city is owed any of the money collected by the CID.
"It's going to be a little hard to verify that, because there's a lot of factors that go into it," Yates said. "We have to make sure the boundaries of the CID and the tax increment financing district overlap exactly. I don't know that for sure."
Royer said in the June 4 council meeting that he estimated the amount the city is owed would be around $100,000, though on Thursday he said he expects the TIF recapture to be even more.
While Royer did not have that amount on Thursday, he said that information would be presented to council at their meeting on Tuesday.
According to the ordinance establishing the CID, which was approved by the Neosho City Council in February 2006, the boundaries of the CID are Industrial Drive to the south, Lusk Drive to the west, Clemons Drive to the north and Business 49 to the east.
Davidson said the city did not discover that it was owed the funds until late 2011, when in discussions with the Neosho Transportation Development District.
"In the TDD discussions with our attorneys, one of the things that they brought to our attention was that, that CID laid on top of that TIF," Davidson said. "So I am confident that the majority of that CID is in the TIF."
The Big Spring Plaza CID operates as a separate political subdivision, and collects a 1 percent sales tax within its borders, which includes the Big Spring Plaza Shopping Center.
According to the 2006 ordinance establishing the district, the CID is to be governed by a board of five directors, made up of owners, those owning real property in the district; operators, those owning a business in the district; or registered voters, who own and occupy a residence within the district.
At the time of the board's formation, the directors were developer Barry Clark, Lavern Beaver, John Beshears, Claude Hammons and Todd Lawton.
Page 2 of 2 - Though the most recent reports show the board with only three current members, Hammons, Beshears and Beaver.
In addition to the question of the district's revenue, the council has also raised concerns about the district's board of directors.
According to the city ordinance forming the CID, once a director's term expires, the successor directors should be chosen from a slate of candidates that go before the council for approval, though Davidson said in his time on council the appointment of directors to the CID board has never come before the city council.
Steve Hays, Neosho city attorney who was also city attorney at the time of the CID formation, said since the initial formation no director appointments have come before council.
However, all five terms, set for two and four years, have since expired.
Yates said that the board is now working to canvass those within the district to prepare a slate of board candidates to present to the council.
"A slate that will be submitted to the city council for consideration by the city council for appointment to the board," Yates said. "I can't speak for what happened previously, but that's what we're going to do going forward."