In 1974 Independence Mayer Dick King cut the ribbon dedicating the Independence Center shopping mall near Interstates 70 and 470. The hope was that commercial developers soon would invest nearby, turning East 39th Street into a retail corridor to rival south Metcalf Avenue in Overland Park.

'That never happened,' said King, a Kansas City lawyer.

It's happening now.

It took 30 years and something called tax-increment financing, or TIF. That's a financial incentive that uses tax revenues generated by a project to reimburse developers for some infrastructure costs.

Now, two of the biggest TIF plans in state history are falling in place on both sides of I-70 in eastern Independence.

Bass Pro Shops, coveted across metropolitan Kansas City, chose Independence. Last month, the Independence City Council approved a TIF agreement that included $73 million in reimbursable costs as part of a $174 million project that will build a hotel, a 14-acre lake and a 60-foot waterfall alongside the celebrated outdoors retailer.

Also, this month city officials are negotiating a TIF plan with HCA Midwest Division, which wants to build a medical center on East 39th Street, not far from Bass Pro. HCA Midwest officials describe the hospital as a $250 million project -- the same estimated cost as the downtown Kansas City arena.

If approved, that TIF deal could include about $41 million in reimbursable costs.

It would be the city's 18th TIF agreement. Over the past decade, TIF has helped to transform the area's oldest municipality -- founded in 1827 -- into one of the state's leading retail districts.

Limited by Limestone

Thirty years ago, heavy deposits of limestone along East 39th Street posed huge upfront costs that scared most developers away. But with TIF agreements, that's no longer true.

That's been good for Independence, which had watched its sales tax revenues decline for years, said King,who is representing HCA Midwest in TIF negotiations.

'Businesses on Noland Road were moving and pulling out to other cities,' he added. 'But since Independence started using TIF, sales-tax revenue has gone up dramatically. Independence would be in dire straits today had they not pulled off what they did on 39th Street.'

Still, Independence's use of TIF has emerged as a flachpoint at times.

Citizens appeared outside several polling stations in August 2003. They sought signatures on petitions for charter amendment calling for voter approval of TIF projects. Completed petitions, however, never were submitted to the city clerk's office.

Some education officials also have been unhappy.

Earlier this year, Jim Hinson, Independence School District superintendent, told the City Council that he could not support the proposal for the new medical center outside the district's boundaries.

Last week, however, Hinson withdrew his opposition, saying he was pleased that a TIF revision includes annual payments of $290,000 to the district over the term of the proposed agreement.

'We didn't oppose the hospital. We opposed the location of the hospital,'Hinson said.

The proposal also includes an annual $177,000 for the Blue Springs School District.

One problem is that some people think TIF in Independene is reserved for the eastern part of town.

'It's the glamorous projects out east that gater all the attention, but thereare also TIFs in the older part of the city,' said Bruce Hahl, Independence community development director.

City officials insist that they use TIFs in line with policies to enhance older portions of the city. For instance, policies discourage retailers from leaving current locations for new TIF projects without City Council approval.

'We want to be bringing new businesses into the community rather than duplicating old ones,' Hahl said.

He cited the Gordman's store in Noland Fashion Square, part of the U.S. 40 and Noland Road commercial district that has struggled in recent years. Executives wanted to move the store to Eastland Center, another TIF development in eastern Independence. They agreed to stay put after speaking with city officials.

'Now they have remodeled their store,'Hahl said.

Another FIF, approved in 2002, hastened construction of a Hy-Vee at the same intersection.

Emotional toll

None of that makes the ongoing HCA Midwest TIF negotiations any less stressful.

Those discussions carry an emotional dimension because the plans include closing two existing hospitals. City officials have been sensitive to allegations that such a move signals abandonment of the older northwest district, where Independence Regional Health Center has operated for decades.

City Councilman Jason White last week said he was 'incredulous' that the TIF plan, while including consideration for two school districts, didn't spell out more details about the future of the two current hospitals. The TIF calls for $12 million to help in the buildings' renovation or rehabilitation, but funding for a possible urgent-care facility in Independence Regional has yet to be spelled out.

The first reading of the HCA Midwest TIF ordinance could be Nov. 15.