Commission Votes for No Tax Incentive for Lindenwood Town Center

The project hit a stumbling block Thursday.

The Tax Increment Financing (TIF) Commission voted 8-4 to recommend that the St. Charles City Council not approve a $9.6 million TIF agreement as part of a redevelopment plan for that area.

Now the TIF agreement would need approval from seven members of the St. Charles City Council or a super majority.

The Desco Group said the financing mechanism was crucial part of the multi-use development that will be anchored by a grocery store and will include retail and a hotel.

The U.S. Post Office located next to is expected to move to the development, freeing up space for the hospital to expand.

Mayor Sally Faith said the council would consider the redevelopment proposal in the next two or three weeks.

"I think it’s a good project," she said. "I think it needs to happen and I’m not waffling from that. But what this commission has said is don’t use a TIF. And so we’ll see what the other council members feel and just go from there."

Commissioner Vicky Huesemann, aide to St. Charles County Executive Steve Ehlmann, made the motion to recommend the city not approve the TIF.

"I personally just have a problem with the financing method," she said.

Desco had requested a three-part TIF. One portion is a self-imposed 1 percent sales tax on the site, which shoppers would pay, which is expected to generate $3.36 million over 23 years. A second portion would be $3.2 million in St. Charles sales tax revenues expected to be generated. The third portion is the $2.98 million in real estate tax that would be diverted.

Commissioner Ed Katchter, former superintendent of Orchard Farm School District, said the vote says nothing about either or the Desco Group.

"I think they (Lindenwood and Desco) are good people who do good things," he said. "The no votes just simply felt that we felt there were other (financing) venues and that historically, TIFs have not been great for schools."

Superintendent Randy Charles said from the school's perspective, $2.2 million of the $3.4 million in new taxes expected to be generated would be diverted away from the school district.

"The project, aside from the TIF, is several pieces and has a lot of good things," he said. "I hope that everyone will find a way to make the project happen."

Comissioner Mary West, who voted in favor of the TIF, said the city needs redevelopment projects such as this one.

"It's an aging city," she said. "This only improves the quality of life for our citizens. It'll increase the property values of surrounding properties in the city."

Voting to reject the TIF were:

• Huesemann
• Katcher
• Tim Bekebrede, member of the St. Charles Board of Education
• Randy Charles, superintendent of the St. Charles School District
• Matthew Brown, special assessments manager for St. Charles County
• Jim Brown, St. Charles City-County Library District director
• Donald Dilly, owner of Don Dilly Agency
• Jill Miles, St. Charles resident

Mary West, St. Charles resident, Tom Palitszsch, owner of Thomas Realty Group and Neal Lang, commander of VFW Post 2866, voted in favor of the TIF. John Oldani, Vice President of Student Development for Lindenwood University, abstained from voting, but abstaintians are counted as a no vote.