TIF Commission's First Meeting

The TIF Commission for the mall site redevelopment held their first meeting on February 4, 2021. If you missed it, a video recording is posted on the City's website (here). The commission is made up of representatives from the City of Crestwood, Lindbergh School District, and St. Louis County government.

During this first meeting they elected a chair and vice-chair, provided an overview of how a TIF works, provided a high-level conceptual concept of the redevelopment (pictured above), and scheduled their next meeting (March 4).

What is a TIF - Tax Increment Financing is a tool used to help offset development costs associated with projects such as this. The site must qualify as "blighted" and the development must show that development is not possible without the use of a TIF.

Here's how it works - A baseline of sales tax revenues associated with the site is set. 50% of all sales taxes collected above this baseline for a period of 23 years will be captured by the TIF to help reimburse the developer for the site improvement costs. The other 50% will be treated just as normal taxes and flow through to state/local destinations. A maximum TIF amount is set, so if that amount is captured before the 23rd year, the TIF can expire early.

What about the existing TIF - Back in 2016, a TIF was established for this site, along with two other similar tools (TDD, and CID) - which all totaled $25M in maximum reimbursement. The "scope" of the TIF was the entire 47 acre site. So now in 2021, 5 years of the 23-year period have already expired, and the now about half of the site will become residential and should be excluded from the "scope" of the TIF. So - a new TIF will be created to replace the old one. Only the commercial portion will be included and the developer (Dierbergs) indicated that the target amount will "substantively less than the $25M previously approved".

Site Plans - The drawing above was shared by the developer during the TIF meeting. It is clearly labeled "CONCEPTUAL", as that site surveying, core drilling, and final designs are still in progress. It is hoped that much of this preliminary work will be further along and more details can be provided at the March 4 meeting.

Clearly there is still a lot of work to be done before construction starts, but this is an encouraging start.