Florissant TIF - Cross Keys Redevelopment

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This presentation was given to the Florissant City Council and Mayor at a Council meeting in 2002, covering the inconsistencies of the TIF proposal given to the Florissant City Council for the Cross Keys redevelopment.

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Florissant TIF - Cross Keys Redevelopment

  1. 1. Cross Keys Redevelopment © Susan M. Geerling, 2002
  2. 2. Background <ul><li>2000 - Mayor Eagan and Council desire Cross Keys Improvement </li></ul><ul><ul><li>Owner won’t redevelop, but will sell </li></ul></ul><ul><ul><li>Mayor Eagan informs Council of interest by Home Depot </li></ul></ul><ul><ul><ul><li>Council says “No” to Home Depot </li></ul></ul></ul><ul><ul><li>Council decides to send out Request for Proposals (RFP) </li></ul></ul><ul><ul><ul><li>RFPs sent to 20 developers </li></ul></ul></ul>
  3. 4. Background <ul><ul><ul><ul><li>Resident Survey used to suggest tenants </li></ul></ul></ul></ul><ul><ul><ul><ul><li>No Tax Increment Financing (TIF) offered in RFP </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Mayor Eagan opposed to TIF - would veto </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Three developers responded: Desco, Sansone, THF </li></ul></ul></ul><ul><ul><ul><ul><li>All three requested TIF to develop </li></ul></ul></ul></ul>
  4. 5. Decision Process <ul><li>(Mayor Eagan had passed away, Mayor Lowery elected) </li></ul><ul><li>City Administration made comparisons and recommendations based on proposals </li></ul><ul><li>TIF information given to Council </li></ul><ul><li>All Developers made presentations to council </li></ul><ul><li>Sansone selected by Council based on: </li></ul><ul><ul><li>Administrative recommendations </li></ul></ul>
  5. 7. Decision Process <ul><li>Sansone selected by Council based on: </li></ul><ul><ul><li>Presentation materials </li></ul></ul><ul><ul><li>Details of their redevelopment plans </li></ul></ul><ul><ul><li>Lowest percentage of TIF requested </li></ul></ul>
  6. 9. Significant Changes Developer Made After Being Selected <ul><li>Requested higher TIF amount </li></ul><ul><ul><li>Originally requested $12.6 million </li></ul></ul>
  7. 11. Significant Changes Developer Made After Being Selected (cont.) <ul><ul><li>Requested $2 million more </li></ul></ul><ul><ul><ul><li>Reason: Schnucks’ right of first refusal </li></ul></ul></ul>
  8. 13. Significant Changes Developer Made After Being Selected (cont.) <ul><li>Final TIF amount is $15.5 million ( additional $2.9 million ) </li></ul><ul><li>TIF percentage changed from 26.9% to 40.8% </li></ul><ul><ul><li>Highest retail TIF percentage in metro area </li></ul></ul>
  9. 15. 4.1% T.I.F. “ Clock Tower” St. Louis Co.
  10. 16. 9.6% T.I.F. “ Galleria” Richmond Heights
  11. 17. 9.8% T.I.F. “ The Shoppes at Sunset Hills” Sunset Hills
  12. 18. 9.9% T.I.F. “ West County Center” Des Peres
  13. 19. 10.4% T.I.F. Park 370-“Mills Mall” Hazelwood
  14. 20. 12% T.I.F. “ Sunset Hills Plaza” Sunset Hills
  15. 21. 13.3% T.I.F. “ Brentwood Square” Brentwood
  16. 22. 13.6% T.I.F. “ North County Festival” Ferguson
  17. 23. 15.4% T.I.F. “ Dierbergs Pointe” Brentwood
  18. 24. 21.8% T.I.F. “ Home Depot Project” Bridgeton
  19. 25. 23.3% T.I.F. “ Cave Springs Home Depot” St. Charles
  20. 26. 26.3% T.I.F. “ Northland Redevelopment” Jennings
  21. 27. 27.3% T.I.F. “ Promenade” Brentwood
  22. 28. 32.1% T.I.F. “ Crossings at Halls Ferry” Ferguson
  23. 29. 32.2% T.I.F. “ Costco/Home Depot Expo” Maplewood
  24. 30. 40.8% T.I.F. “ The Shoppes at Cross Keys” Florissant
  25. 31. Significant Changes Developer Made After Being Selected (cont.) <ul><li>Selection of Home Improvement Store as Main Anchor </li></ul><ul><ul><li>At Executive Session on 4/30/01, Council told all developers no Home Improvement store </li></ul></ul>
  26. 33. Significant Changes Developer Made After Being Selected (cont.) <ul><li>Only after ALL bills were passed did Sansone inform Council of Home Depot as their “big box” tenant (11/26/01) </li></ul><ul><ul><li>Council Unanimously voiced displeasure at that meeting </li></ul></ul><ul><ul><li>Everyone instructed not to discuss tenant publicly </li></ul></ul><ul><ul><ul><li>Within a week Post Dispatch column announced Home Depot’s interest in Florissant </li></ul></ul></ul><ul><ul><ul><li>“ St. Louis Business Journal” (12/14/01) announces Home Depot in Cross Keys </li></ul></ul></ul>
  27. 35. Significant Changes Developer Made After Being Selected (cont.) <ul><ul><ul><ul><li>Email from Business Journal Indicated Sansone provided information </li></ul></ul></ul></ul>
  28. 37. Significant Changes Developer Made After Being Selected (cont.) <ul><ul><ul><li>Sansone quoted in Post Dispatch column (1/16/02) </li></ul></ul></ul>
  29. 38. “… including the prototype Home Depot store and a brand-new Schnucks Market, still planned on coming to the Cross Keys project. He and his city council were relentless until we finally said yes,” said Jim Sansone of the Sansone Group
  30. 39. Significant Changes Developer Made After Being Selected (cont.) <ul><li>Original Transportation and Development Tax (TDD) was for 1/2 % sales tax in new development </li></ul>
  31. 41. Significant Changes Developer Made After Being Selected (cont.) <ul><li>Final agreement shows 1% TDD sales tax </li></ul>
  32. 43. Site Plan Changes Developer Made After Being Selected <ul><li>The number of parking spaces reduced </li></ul><ul><ul><li>Original number 1,883 </li></ul></ul>
  33. 44. 1,883 Total Parking Spaces
  34. 45. Site Plan Changes Developer Made After Being Selected (cont.) <ul><ul><li>Reduced to 1,655 now </li></ul></ul>
  35. 47. Site Plan Changes Developer Made After Being Selected (cont.) <ul><ul><ul><li>Barest minimum possible under B-5 code </li></ul></ul></ul>
  36. 49. Site Plan Changes Developer Made After Being Selected (cont.) <ul><ul><ul><li>“ Seasonal Storage” space reduces number even further </li></ul></ul></ul>
  37. 50. 48 Spaces
  38. 51. Site Plan Changes Developer Made After Being Selected (cont.) <ul><li>Schnucks loading docks moved </li></ul><ul><ul><li>Originally behind building </li></ul></ul>
  39. 53. Site Plan Changes Developer Made After Being Selected (cont.) <ul><ul><li>Now along Lindbergh side of building </li></ul></ul>
  40. 55. Site Plan Changes Developer Made After Being Selected (cont.) <ul><li>Color of overall development changed </li></ul><ul><ul><li>Originally red brick, creme highlights, green roofing </li></ul></ul>
  41. 57. Site Plan Changes Developer Made After Being Selected (cont.) <ul><ul><li>Now plan includes many different, lighter colors - no red </li></ul></ul><ul><ul><ul><li>However, booklet given to Council at public hearing (2/25/02) still shows original red brick design in 9 photos. </li></ul></ul></ul>
  42. 61. Site Plan Changes Developer Made After Being Selected (cont.) <ul><ul><ul><li>One page shows a single storefront with new color scheme. </li></ul></ul></ul>
  43. 63. Site Plan Changes Developer Made After Being Selected (cont.) <ul><li>Construction Materials Changed </li></ul><ul><ul><li>Administrative report stated “brick and stone” </li></ul></ul>
  44. 65. Site Plan Changes Developer Made After Being Selected (cont.) <ul><ul><li>Sansone proposal booklet stated “brick and stone” </li></ul></ul>
  45. 67. Site Plan Changes Developer Made After Being Selected (cont.) <ul><ul><li>At public hearing, council was told store entries, field elements, sign areas, cornices, rear and side portions of most buildings will be constructed of EIFS (synthetic plaster), concrete masonry units, split faced block, etc. Only bottom eight feet of store fronts will be brick. </li></ul></ul><ul><ul><ul><li>Deviates extensively from Florissant’s masonry code </li></ul></ul></ul>
  46. 69. Site Plan Changes Developer Made After Being Selected (cont.) <ul><li>Water Features </li></ul>
  47. 71. Site Plan Changes Developer Made After Being Selected (cont.) <ul><li>Original proposal showed two water features </li></ul>
  48. 73. Site Plan Changes Developer Made After Being Selected (cont.) <ul><li>Plan now shows only one. </li></ul>
  49. 75. Site Plan Changes Developer Made After Being Selected (cont.) <ul><li>Signs Deviate from Florissant’s Code Requirements </li></ul><ul><ul><li>Plan includes 2 higher-than-code pylon signs </li></ul></ul><ul><ul><ul><li>50% closer to street than code </li></ul></ul></ul><ul><ul><li>Plan includes 4 monument signs </li></ul></ul><ul><ul><ul><li>50% closer to street than code </li></ul></ul></ul>
  50. 76. Negative Impacts on Community <ul><li>A home improvement store in the development duplicates too many existing businesses </li></ul><ul><ul><li>Original plan was for new types of businesses </li></ul></ul>
  51. 78. Negative Impacts on Community <ul><li>Sales from full-tax-paying businesses will be reduced resulting in lower community funding. </li></ul><ul><ul><li>Tax income from stores in Cross Keys doesn’t return to community at typical rates until after TIF payoff (up to 23 years). </li></ul></ul>
  52. 79. Negative Impacts on Community <ul><li>Very little likelihood of creating a “larger home improvement market” in Florissant by saturating the area with yet another home improvement store. </li></ul><ul><ul><li>Home Depot at 270 & New Halls Ferry not doing as well as expected </li></ul></ul><ul><ul><li>The other Home Depot is barely generating enough revenue to pay the interest on the TIF bonds for that TIF project. </li></ul></ul><ul><li>Reduction in sales at many other area businesses could result in their failure </li></ul><ul><li>Big Box stores play “King of the Hill” to eliminate competion. We should not be used as a pawn in their game when it could result in more empty stores. </li></ul>
  53. 80. Would Sansone Build Without Approval of Home Depot? <ul><li>Why is this important for the Council to consider? </li></ul><ul><ul><li>Approval of B-5 doesn’t grant approval of Home Depot </li></ul></ul><ul><ul><ul><li>B-5 rezoning covers “permitted uses” within the B-3 zoning </li></ul></ul></ul>
  54. 82. Would Sansone Build Without Approval of Home Depot? <ul><ul><ul><li>B-3 zoning lists many businesses that are “permitted uses” </li></ul></ul></ul><ul><ul><ul><li>B-3 zoning also includes many businesses requiring a “Special Use Permit” </li></ul></ul></ul>
  55. 84. Would Sansone Build Without Approval of Home Depot? <ul><ul><ul><ul><li>“ Home Improvement Store” requires a special use permit. </li></ul></ul></ul></ul>
  56. 86. Would Sansone Build Without Approval of Home Depot? <ul><ul><li>Will Sansone be willing to proceed before Home Depot receives a “Special Use Permit”? </li></ul></ul>
  57. 87. Conclusion <ul><li>Because so many changes have been made to this development between Sansone’s original proposal and what is planned now - many which deviate extensively from the Florissant code - I cannot support this B-5 rezoning. </li></ul>

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