Ellisville Could Be Headed For A New Tiff Over Walmart TIF

A new Ellisville City Council could be headed for a fight over another issue approved by predecessors. The topic: the tax increment financing (TIF) of the Walmart approved for Kiefer Creek and Manchester Road.

On Wednesday, John Hessel, an attorney for The Sansone Group, appeared before the council to discuss the issuance of TIF notes.

What is a TIF “note”?

According to this primer 

The issuance of TIF notes is a method for a municipality to document its obligation to the developer to repay certified TIF reimbursable project costs. TIF notes are issued by a municipality to the developer in the amount of certified reimbursable project costs. Once a municipality makes a decision to issue TIF notes, the municipality is deemed to have:• issued notes for the amount of certified reimbursable project costs;• deposited the funds necessary for payment of the project costs in a project fund; • reimbursed the developer in full for the certified costs from the amounts on deposit in the project fund; and • the developer is deemed to have advanced the funds necessary to purchase the notes. TIF notes generally provide for payment of interest on funds due to the developer. 

Hessel had a message for the council members, which now includes some who won election in April based on an opposition to TIFs: The message was that they have little choice but to vote to issue the notes because the council voted last May to approve the TIF and the redevelopment agreement.

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"In this instance the city council truly is acting in an administrative capacity as opposed to your legislative," Hessel said. "You're acting in that administrative capacity because the city has already taken action with respect to the TIF and has already taken action with respect to the obligation to issue those TIF notes," adding that "under the law, you are obligated to pass those ordinances dealing with the creation of the TIF notes.

Councilman Mick Cahill, who ran as an anti-TIF candidate in April, spoke up at that.

"If I don't take these actions the city and the current city council members will be liable so to me, that sounds like a threat if I don't vote that way, then I'm all of a sudden gonna be sued," he said.

Hessel reminded Cahill and the council that they would not be voting "for" the TIF by issuing the notes.

At the urging of former Mayor Adam Paul, who spoke out in a public comment period during the meeting, council members went into closed session and emerged to decide to hire a special counsel to review the council's options.

Hessel urged members to make a decision at the next month's council meeting.