CHESTERFIELD — Chesterfield’s controversial tax-increment financing package to help redevelop the city’s former shopping mall and nearby land is allowed under state law, said State Auditor Scott Fitzpatrick on Friday after a review of the project.
Fitzpatrick said while he recommends that the city “correct†some aspects of the plan and improve transparency, “our investigation found no issues that would prevent the TIF from proceeding.â€
City Administrator Mike Geisel in response said city officials “feel very happy that the auditor has determined there’s no fraud, no corruption and no issues legally with the TIF.â€
“It’s going to go forward,†Geisel said.
Critics of the TIF have contended that it violates state laws meant to limit TIFs to projects that wouldn’t be possible without the special tax breaks.
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TIFs, which are supposed to incentivize redevelopment of blighted areas, freeze property tax levies and allow some new tax revenues generated by improvements to the site to help cover project expenses.
A developer, the Staenberg Group, has demolished most of the mall to turn it and nearby property into apartments, homes, shops and offices as an urban downtown.
Just west of the mall, CRG is building a large housing and retail project, Wildhorse Village, on previously undeveloped land.
In 2022, the city council approved a $353 million TIF package for the projects. The TIF is to help pay for new infrastructure at the two sites and adjacent areas and also cover infrastructure costs for the city’s Central Park, amphitheater and a county library branch near the mall site.
Fitzpatrick said the redevelopment plan as currently written doesn’t “clearly support†the conclusion that the affected area “on the whole†is impacted by blight factors as required by state law.
“However, state TIF laws also do not contain specific or clear criteria to draw a definitive conclusion,†he said.
Fitzpatrick also said his office’s analysis indicates that property containing blight factors encompasses only about 35% of the 216-acre redevelopment area.
He said the development plan itself is not clear on what areas and corresponding acres are considered blighted and what the designation was based on.
However, he said the Missouri Supreme Court has ruled that a blighted area may include parcels which are not themselves blighted if ‘’necessary to provide a tract of sufficient size or accessibility’’ to attract redevelopers.
To improve transparency, Fitzpatrick said, the city should consider clarifying the plan ‘’regarding what portions...are designated as blighted areas.â€
He also said the city should correct a discrepancy in a legal description, which Geisel said would be done.
Chesterfield Mayor Dan Hurt said city officials had been confident that the TIF followed state law because the city had used the tool previously. He pointed out that the city had used a TIF to rebuild the Chesterfield Valley area after the 1993 flood. “We believe this area....will have the same return in investment,†he said.
Fitzpatrick also said “given the scale and complexity of the project,†transparency would be improved if the city reported on the status of the TIF district more frequently than the required annual report.
