Shoppers at the Sunshine Towne Centre, a planned west Springfield development that will feature a new Target store, can expect to pay more in sales taxes.
On Feb. 26, the Springfield City Council was presented the details of a petition to establish a Community Improvement District (CID) over a portion of the development, and is slated to take a final vote on the special taxing district at its March 11 meeting.
If approved, the CID will become a political subdivision with the power to impose a 1% sales and use tax on retail sales made in the district. A green light from the City Council would also authorize an agreement between the newly-established CID, the City of Springfield and the developer, listed as Springfield West Partners, LLC.
Background of the development
The Sunshine Towne Centre, located at the southeast corner of Sunshine Street and West Bypass, is a $60 million development that will feature Springfield’s second Target store, a 50,000-square foot shopping center and three lots zoned for commercial development.
The Target store is not within the district boundaries, which primarily encompass the eastern 11 acres of the property. Therefore, Target shoppers would pay Springfield's base sales tax rate of 8.1% while retail sales at the shopping center would be subject to a 9.1% tax.
The Target will be a new prototype with about 30,000 square feet of additional retail space than the company's typical stores. The plan includes a fulfillment center for internet-based shopping.
The estimated annual sales volume of the development is $60-70 million, with the Target projected to make up $45-55 million of that, according to documentation provided to the City Council.
In 2023, the City Council approved the annexation and rezoning of the property, as well as the preliminary plat and an infrastructure reimbursement agreement for the development. Under the agreement, the developer is slated to be reimbursed more than $4 million for public improvements on Sunshine, West Bypass and Moore Road.
Details of the community improvement district
The proposed CID would further reimburse the developer up to $2,217,330 for the cost of projects associated with internal streets in the development district. Private entities will be responsible for maintaining the streets, according to developer Thomas Walker, though the streets will be accessible to the public.
Walker said the City of Springfield had no interest in accepting a dedication of the streets, and that future maintenance will be paid for by the property owners and Target Corporation.
The new streets will connect the development to new access points on surrounding roads. Walker said the entire project was contingent on access from West Bypass, due to the median that divides Sunshine Street.
The CID will be dissolved after 27 years, or as soon as the $2.2 million has been reimbursed.
