Will Chesterfield be able to support two outlet malls at once? Some in the financial markets seem to think so.
Fitch, one of three companies that serves as a rating agency for securities, recently upgraded its outlook from “stable” to “positive” for bonds associated with the Chesterfield Valley Transportation Development District.
The move was in part due to confidence in that the opening of Taubman Prestige Outlets and St. Louis Premium Outlets, both to be located in Chesterfield Valley, would grow sales tax revenues.
In a press release, the company cited several factors for the decision:
- Recent sales tax improvement: The Positive Outlook reflects continued progress in expansion of the sales tax base with the planned opening of two sizeable outlet centers on track for later this year.
- Improving but volatile sales tax collection: Sales tax collections for 2011 and 2012 were up considerably versus prior years, reflective of an improved local economy, but inherently remain subject to cyclical volatility.
- Accessible location: The district encompasses a five mile commercially attractive retail corridor along Interstate 64 which caters to the affluent St. Louis County region.
The company also believes that there is enough economic activity and concentration of wealth in the area to support such intensive retail. It cites the significant growth of Mercy Healthcare, which is headquarter in Chesterfield, and the relocation of RGA’s headquarters to the city as well.
“These projects will bring a sizable numbers of workers to the area, increasing the population of shoppers within the district,” it stated.