Clayton’s Board Approves Its First Use of Tax Increment Financing

December 19, 2007

Recognizing that competition to recruit and retain businesses is intensifying, and the use of economic incentives is becoming more prevalent throughout the St. Louis Metropolitan area, the Clayton Board of Aldermen voted unanimously on Dec. 18 to adopt an ordinance authorizing the use of Tax Increment Financing for the proposed Carondelet Village redevelopment project.

At a public hearing on Dec. 3, 2007, the TIF Commission, which was appointed in September 2007 to review the developer’s request for a public-private partnership, adopted a resolution recommending that the Board of Aldermen approve the redevelopment plan, designate the redevelopment area as a “redevelopment area” pursuant to State law, approve the redevelopment project, and adopt TIF within the redevelopment area.

Following the adoption of the ordinance authorizing the use of TIF, the project must go through the site plan review process with the Plan Commission. The Board of Aldermen must also negotiate a redevelopment agreement which will set the main parameters of the project such as default provisions, timeline, amount of TIF and financing structure.

“Using economic incentives is new to Clayton, but it has become a necessity in the race to maintain economic viability,” said Clayton Mayor Linda Goldstein. “The incentives not only encourage development, they level the playing field in the competition.” At the Clayton Chamber sponsored State of the City breakfast on Dec. 6th, Ward III Alderman Alex Berger III, an aldermanic representative to the City’s Economic Development Advisory Council, stated the City is committed to maintaining its vibrancy and vitality. Mark S. Mehlman’s proposed $116 million Carondelet Village development plays a very important role in enhancing the City’s vibrancy and vitality within the Central Business District, and adds the critical mass necessary to reestablish Clayton as a shopping destination.

A list of material describing the redevelopment project and a chronology of the public engagement process are available under BUSINESS on the City’s website www.ci.clayton.mo.us. Information about the TIF Commission is also available under BUSINESS and under CITY HALL, Committees/Commissions.