Starting July 1, Mission Mart shoppers will pay an additional 1% sales tax on all purchases at the retail center in downtown Mission.
The Mission City Council last week unanimously approved creating a community improvement district, or CID, covering the shopping complex at 5431 Johnson Dr., the city’s largest retail center.
A CID is a type of public incentive that uses additional tax revenues to reimburse developers for certain costs associated with a project. In this case, the money raised by the special additional sales tax would help pay for upgrades to the Mission Mart complex.
The 1% sales tax will be in effect for 22 years or until $3.5 million in tax revenue is accumulated in a special community improvement district fund.
Sunflower Development Group, which is working to buy the Mission Mart complex and is also developing the nearby apartment complex The Lanes at Mission Bowl, plans to make at least $7 million worth of improvements at Mission Mart, including roof and parking lot upgrades as well as new signage and landscaping.
A look at the project details
City Administrator Laura Smith told the city council last week that Sunflower Development Group, through the associated entity Ridgeview North Associates LLC, pledged not to increase the community improvement district tax at a future date.
The developer also committed to submitting requests for reimbursements within the first five years of the additional tax being in place, effectively pledging to getting improvements done early.
Additionally, Smith said that as far as taxing goes, “the city doesn’t lose” any sales tax revenues by approving the community improvement district. The existing sales tax revenues will remain in place.
Here’s a look at the specific upgrades planned for Mission Mart that are set to be paid for through the community improvement district funds:
- Nearly $1.5 million in interior improvements and HVAC repairs
- Another $1 million in facade upgrades
- Finally, $675,000 in roof repairs and another $235,000 in parking lot, landscaping and other improvements
In previous conversations with the city council, Sunflower Development representatives said the company has no plans to increase rent for business tenants as part of the renovation plans.
Council supports the Mission Mart project
- Councilmembers Ben Chociej and Debbie Kring spoke in favor of the Mission Mart renovation plans.
- Chociej said he’s enjoyed working with Sunflower Development Group on previous projects in downtown Mission, such as The Lanes apartments.
- Chociej said he sees the 1% sales tax as the developer and tenants “levying a tax on themselves.”
- Speaking to Sunflower representatives, Kring said the company has “proven yourself in the past.”
- “I’m enthused by this. This is a benefit to our community, they get something out of this,” Kring said. “The apartments, not always, but this is great for the community at large.”
Businesses silent on changes
- Smith told the city council last week that the developer reached out to existing tenants ahead of the March 19 public hearing, and that while the developer heard from some tenants, the city has not heard from any tenants.
- The Post surveyed Mission Mart businesses on Friday to gauge support or opposition for the 1% sales tax, but several businesses declined comment.
- Still, one Mission resident and Mission Mart shopper, who asked not to be identified by name, expressed strong opposition toward the 1% sales tax.
- The resident said she is concerned about the impact on Mission Mart shoppers who will be paying even more sales taxes on purchases.
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