Developers seeking special district

‘Has no effect on the taxes or city,’ Southaven mayor says

Developers of the Outlet Shops of the Mid- South, a 324,000- square-foot mall to be built in Southaven, want to establish a special assessment district that would allow them to secure private financing for infrastructure improvements to the site.

The district they want to set up is called a Public Improvement District, or PID. A PID can be established for residential, commercial and industrial projects in the state.

Essentially a quasi-governmental body, similar to a condominium association, the district has a board of directors who may issue bonds and collect assessments from property owners in the district to pay for the infrastructure improvements such as water and sewer systems, roads and other improvements.

Debt is not backed by the city, county or the state.

Since land for the district, 33 acres where the $165 million outlet mall will be built at Interstate 55 and Church Road, is within the city limits of Southaven, developers must petition the city to allow the establishment of the PID.

After the petition is presented, a public hearing must then be held within 45 days of fi ling of the petition. A public notice about the hearing must also be published at least once a week for four weeks before the hearing.

“There has been some inaccurate information on this issue,” Southaven Mayor Darren Musselwhite said.

“A PID has nothing to do with the city. Once the developers set

up the PID, it has no effect on the taxes or city money. It has nothing to do with the city.”

Musselwhite added: “By law, for a public improvement district to be created within the city limits of the municipality, the city has to approve that.

“We have to approve a public hearing, and then later we may approve the actual PID. The PID has it own board and can raise private financing by issuing bonds.”

Musselwhite said the Board of Aldermen has called a special meeting at 4 p.m. Monday to set the public hearing date for the PID.

“Once again, I just want to repeat that the PID affects no one except the people in the PID, and in this case that would be the retail businesses,” Musselwhite said. “It will have no impact on the citizens within the city of Southaven.”

Memphis-based developers Poag & McEwen Lifestyle Centers, part of the development group building the outlet mall, has already qualified and been approved for $34 million in sales tax rebates.