Sales Tax Hike for Chesterfield Outlet Mall Developer Passes 6-1
Chesterfield City Council moves for St. Louis Premium Outlets to get $30 million to build.
Photos
A 55-acre outlet store mall proposed for Chesterfield Valley got the OK from the Chesterfield City Council for a 1 percent sales tax hike on consumers once it opens.
The tax, levied under a Community Improvement District (CID) lets developers of St. Louis Premium Outlets leverage future tax gains toward $30 milllion to build the shopping complex.
After the vote, Chesterfield Blue Valley LLC developer Dean Wolfe, who owns the 188 acres of former farmland where the mall would be, said he was happy to conclude this step.
"It's an important element in our development," Wolfe told Chesterfield Patch.
The approval for the additional sales tax passed 6-1, with Councilman Barry Flachsbart voting no, saying he preferred a 5/8 percent sales tax instead of 1 percent.
"I'm not against a CID, I just think it's too much," Flachsbart said afterward.
Monday night's meeting had none of the raucus naysaying over the sales tax hike, like the public hearing two weeks ago.
However, an attorney for Taubman—a competing outlet mall developer—questioned claims by Premium Outlets developers over readiness to build, and whether they sought to condemn surrounding property in order to get drainage ditches through.
Then longtime resident Harvey Ferdman testified he didn't like the cost of doing business disguised as a sales tax, but that merchants should pay for it.
Also, Chesterfield's former mayor Nancy Greenwood sent a letter read aloud that expressed doubt over whether constituents really wanted more sales tax—and she decided "No."
While current Chesterfield Mayor Bruce Geiger does not vote, he encouraged councilmembers to support the tax measure, with a list of why, including:
- No city funds will be spent on the project
- No risk to the city
- The outlets will bring in $25-27 million a year in new revenue to the city when it's fully operational, in Phase 2
- It will provide $15 million in new revenue to schools, fire, and others in property tax revenue, during Phase 1
- Job creation for construction
- Job creation in retail sales
The measure passed with an amendment that puts the City of Chesterfield's top staff administrator on the board of the CID as a non-voting member.
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Gene Spilker
9:29 pm on Monday, May 21, 2012
I would like to get on your email list. Me email address is:
hspilker@swbell.net.
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Gene Spilker
9:30 pm on Monday, May 21, 2012
I had trouble getting to sign in on my email address.
Harriet pilker
Kurt Greenbaum
7:26 am on Tuesday, May 22, 2012
You're signed up!
Harvey Ferdman
11:22 am on Tuesday, May 22, 2012
One of my points was that people have become sensitive to tax rates and that shoppers at this mall are going to think ALL business in Chesterfield are charging this tax rate which may hurt other business in our community. The speaker after me was a Republican State Rep who made my point for me by talking about his efforts to impede the large number of people from St. Louis who buy cars in Illinois because of the lower sales tax there … an effort that appeared to please the council members. The irony of this is that at the last meeting, the council members made it clear that they don’t think people will pay attention to the extra sales tax this CID allows.