Access and Infrastructure Agreement
Mary Lilly Smith
Economic Development Director
840 North Boonville
Springfield, MO 65801
The City of Springfield negotiates Access and Infrastructure Agreements to provide necessary public improvements in conjunction with new development. Traditionally these agreements are used to finance public improvements for which there is already a need but no public funds available to finance.
Sections 2-16(3), (5), (25) and (29); Sections 10.1 and 10.5 Springfield City Charter
Eligible types of public improvements include, but are not limited to, the following:
- Intersection improvements
- Street widening
- Traffic signals
- Streetscape improvements
- Regional stormwater detention facilities
Typically, Access and Infrastructure Agreements involve either sales tax reimbursement or developer participation. The agreements are customized to the particular public improvement need.
Sales Tax Reimbursement
City participation in this type of Access and Infrastructure Agreement is predicated on creation of new sales tax revenue. The developer pays for the improvements and is reimbursed through new sales tax revenues generated by the development. The City typically uses 50% of the 1% general sales tax for reimbursement.
In this type of agreement the developer provides partial or total funding to expedite an unfunded public improvement that will benefit his development.
An Access and Infrastructure Agreement is a contract between the City and a private developer and must be approved by City Council. The terms of the contract are negotiated between City staff and the developer.
Access and Infrastructure Agreement Policies
- Access and Infrastructure Agreements will be used for public works improvements only.
- Sales tax reimbursement contracts will typically use 50% of the City's 1% general sales tax to reimburse the developer for the public improvements. Dedicated taxes, such as the capital improvements and transportation sales taxes, will not typically be utilized in the sales tax reimbursement.
- City reimbursement to the developer will typically occur over a three (3) to five (5) year period and will be explicitly defined in the Access and Infrastructure Agreement. Outstanding developer expenditures not reimbursed at the end of the Agreement term will be the developer's responsibility.
- The City will pay the developer interest on the unpaid balance of the public improvement at a rate of two percent (2%) over the latest City general obligation bond issue.
- When considering a Developer Participation Access and Infrastructure Agreement, the City will evaluate the project on the merits of available matching funds (if necessary), compatibility with the current work program, and whether the project addresses an immediate or emerging public need.
All projects will be reviewed for consistency with both the policies for the desired incentive as well as the general policies listed on the Overview and General Policies page.