Sale of Hospital Generates Tax Money for Neighborhood

Tax monies generated from the sale of the Columbia Independence Regional Health Center in Independence, MO, are benefiting the surrounding residential areas under an unusual financing structure. Formerly owned by the Reorganized Church of Jesus Christ of Latter Day Saints, the hospital is now a for-profit institution that contributes nearly $400,000 yearly to the local tax rolls.

Monies are going to the neighboring Midtown/Truman Road Corridor project, which is a combined tax increment financing plan as well as a Chapter 353 development project. “As far as I know, we are the first in the country to combine these two,” says Jay Leipzig, housing advisory services manager for the Midtown/Truman Road Corridor Corp. “We are able to use TIF money to purchase property and use tax money to pay for the work.”