Wildhorse Village, LP has submitted a petition to the city of Chesterfield to establish a special business district to provide for the maintenance of public improvements.
The boundaries of the SBD include Burkhardt Place on the west and south, Chesterfield Parkway on the east, and Wildhorse Creek Road on the north.
The proposed special business district includes approximately 80 acres that will be developed as a mixed-use development, consisting of 635 residential units and 801,000 square feet of commercial uses (office, hotel, retail, restaurant).
The special business district would provide for maintenance, repair and replacement of city accepted streets, street lighting, landscaped center medians, and the paved lake trail within the Wildhorse Village development. Other costs would include police services and general administrative costs.
As part of the process, a public hearing was held on May 15.
"The special business district is a mechanism for the property owners within that district to pay for those services," explained Justin Wyse, director of planning.
A survey and investigation report is required that summarizes the services currently provided by the city, as well as the future costs anticipated with the development of the site.
According to City Administrator Mike Geisel, the additional obligations that will be created by that development are in excess of $1 million.
"This is the opportunity to fund the cost of their own services," Geisel said.
An election would need to be held on the approval of a tax on owners of real property in the district in a sum not to exceed $0.85 per $100 assessed valuation to provide revenue.
Chesterfield will conduct a mail-in election to authorize a levy on the site to pay for the additional services not currently provided.
In addition, an advisory board would be created. The mayor, with the consent of the city council, will appoint the seven-member board to make recommendations as to the uses of the district. Two of the seven members will be designees of Wildhorse Village and five will be designees of the city.
The city council has already approved the use of up to $353 million in tax increment financing (TIF) for the redevelopment plan for the Chesterfield Regional Tax Increment Financing District.
While the TIF has a maximum life of 23 years, there is no sunset clause on the special business district tax.
Although this specific petition only involves the Wildhorse Village development, the same concept and requirements could be considered for the Chesterfield Mall redevelopment area as well, Geisel said.
The city council had a first reading of the bill to create the district. A second reading and vote for passage is expected at its next regular council meeting.
In other action, the city council approved a bill to adopt a procedure for considering development plans according to Chapter 353 of the Revised Statutes of Missouri, as amended. Known as The Urban Redevelopment Corporations Law, Chapter 353 authorizes the city to approve, by ordinance, development plans that allow for the redevelopment of blighted areas and the granting of tax exemptions to encourage such redevelopment.