TIF Public Hearing Gets Heated In University City

UNIVERSITY CITY, MO — University City held a long, hot, occasionally raucous public hearing on the proposed development at Olive Boulevard and Interstate 170 Wednesday night. It began with standing room only — more than 700 people crowded into the Mandarin House, with at least a hundred being turned away at the door by the fire marshal — and ended four hours later with only a few dozen stalwarts holding out until the end.

Occasional cries to turn up the volume interrupted the city's presentation on tax increment financing, or TIF, which went on for almost an hour and a half before any citizens were able to add their voices to the discussion. The air-conditioning drowned out the PA system for many jammed into the back of the room, while those in the front sweltered, wondering if the air was really on at all. Others yelled questions and jeers, arguing that they couldn't understand the numbers being thrown at them by the city's hired consultants and the developer himself.

"Listen to me, this is good for you," said Novus President Jonathan Browne, as citizens yelled from the audience. "Listen. Tell you what, let me present the information, and then you decide whether it's good for you. You don't know what it is until I give it to you."

That's part of the problem, many residents said — that they weren't included in the process from the beginning and are only now being presented a plan seemingly out of whole cloth.

"Do you want me to walk away?" Browne continued. Several residents shouted yes. "Do you really? I heard at least one no, that's all I need, I'm moving on. I'm not alone here."

He's right about that. The city, including the city manager and perhaps the entire city council, is firmly behind him in support of the project.

Though Browne said he is still not allowed to reveal the secret commercial retail tenant that will anchor the new development, he all but admitted that it is a Costco.

"Here's what I can tell you," he said. "You do a little math here. Let's see how smart you are. There's three wholesale clubs. It's a wholesale club. It's not BJ's. It's not Walmart [Sam's]."

Though the development will displace 67 homes, 58 apartments, 7 property owners who rent to dozens of businesses, two churches and a school, the retail anchor will bring more than $100 million of taxable sales to the area, Browne said. Currently, the site does about $6 million worth of taxable sales annually, according to the developer, though some residents challenged that number.

More than 50 speakers lined up to express criticisms of or support for the project. Everyone seemed to agree on at least one thing: the third ward has been neglected for too long. Some said they hope this development can change that, while a great many expressed skepticism and mistrust of the city and the developer.

"I'm very optimistic about this plan," said Cheryl Mursaddiq. "But after listening to some of my neighbors, the fact that there was such a lack of transparency definitely concerns me. I really don't feel a decision can be made on half information."

Mursaddiq said she was also challenged by a neighbor who is waiting to see whether the development will go forward before deciding to fix her roof or sell her house. "You can get the support for this. It sounds like a great plan, but lack of transparency breeds mistrust, and I think that's what we've seen here tonight. If you have trust, then you'll have support."

That lack of transparency was readily apparent to one Asian business owner, who said she only found out about the proposed development a few hours before the public hearing, and that neither the city nor the developer had made information available in her language.

Caroline Fan, director of Missouri Immigrant and Refugee Advocates, spoke for about 40 Asian and Latino residents and business owners, including Li Ming, the owner of Lulu's Seafood and Dim Sum, and Nobu Kidera, who owns the last Japanese-American owned sushi restaurant in St. Louis.

"Currently, the top two tax generators for University City are Olive Supermarket, which is Chinese-owned, and Seafood City Supermarket, which is Vietnamese-American owned," Fan said, speaking for Li. "So, what do you think is going happen if you bring in a big box?"

The businesses would go under, someone in the audience shouted.

Fan said she personally translated the city's information for many of the residents she spoke for, all with no help from the city. "TIF is very hard to explain in English," she said. "Try explaining it in Chinese or Spanish."

Fan said her group previously awarded University City a "champion of diversity" award, a fact she is now ashamed of.

Many business owners said they would be unable to afford to relocate in University City, with one calling the relocation plan presented by acting community development director Rosalind Williams a joke. Kidera, speaking through Fan, said he had recently installed a new $20,000 air-conditioning system in his sushi restaurant, and that he and his wife work five days a week with no retirement savings.

According to the relocation plan presented by the city, business owners who own their property would receive $1,000 toward their moving costs, with some "desirable" businesses receiving more on a case-by-case basis. Businesses that lease their space would receive $3,000 to cover relocation.

Homeowners would receive $10,000 toward buying a new house in the third ward, or $1,000 for relocating elsewhere within University City. That money could be used for down payments, closing costs, renovations or temporary rentals.

"$10,000 hardly pays to relocate our bathroom. The money that goes into building a restaurant is significantly more," said the owners of Pho Long restaurant currently located in Jefferey Plaza, adding that the proposed rent to relocate in Novus' new development is about three times what they are paying now. They said that's unaffordable and would effectively put them out of business.

Others raised concerns about gentrification pricing current residents out of their communities. One of those people was state Sen. Maria Chappelle-Nadal, a University City resident. "I am concerned because I'm looking at history," she said. "In the district that I currently represent, there are a lot of previously historical African-American communities where there was blighting done and they wanted to do development, and now those communities don't exist anymore."

"How much will property taxes go up?" another resident asked, adding that many residents in the third ward live on a fixed income and might not be able to afford steep tax hikes.

"This is a black and white issue," said Sandra Whitley. "And whoever says it isn't, you're a damn liar. You're taking homes where people are raising children, want to pass something down to their children. The old saying was, if you're white, you're alright. If you're black, stay back. If you're brown, stick around. Now, there are brown people around here, and we don't want this. You're talking about redevelopment. You're taking black homes. You're taking 100 percent black homes, why can't you have 100 percent black construction workers?"

Earlier in the meeting, the developer said a goal of 39 percent minority participation in the project — which would mirror the demographics of University City — was unattainable, but pledged to do his best. One reason for that is that the city has pledged to use union workers for the development.

"Everyone knows we were kept out of unions," said resident Bobette Patton, who otherwise supports the project. "Don't tell me we can't get that. Make it happen."

Matt Stiffelman, who previously owned Vernon's BBQ until it closed earlier this year, summed up many of the comments voiced at the public hearing.

"There are good developments, and they win. And there are bad developments, and they screw everything up," he said. "Everyone who has a complaint, you all need to listen. Because every complaint is what's wrong with your plan.

"I can tell you for sure that the city is doing a bad job explaining this. I have a thorough knowledge of TIF and I don't understand what they're saying. They understand what they're saying, but they're not explaining it to us well. I'd like to help you guys communicate and translate, but you have to call on the citizens to help you if you want the citizens to be involved."

Stiffelman said the third ward has been neglected for decades and the city needs to re-earn its trust. "We don't trust the city because the city has left us hanging while we watch the first and second ward get the treatment they deserve. So, I'm glad the money is going to the third ward. We need to make sure everything they say is contractually bound and there's no way they can get out of it.

"I'm not for or against this project. I'm for the right project in U City and nothing less."

A map of the proposed development:

Another public hearing is scheduled for June 6 at 7 p.m. It will again be held at the Mandarin House unless a better venue can be found.

To catch up before the next public hearing, read Patch's previous reporting on the proposed Olive development below:

• Watch The April 15 University City TIF Commission Meeting
• Citizens Call For Community Benefits Agreement Before TIF Vote
• Mostly White TIF Commission Weighs Fate Of Minority Community
• Councilmember Smotherson Responds To Patch TIF Commission Article
• Olive Development Meeting Scheduled For 6:30 Tonight: Watch Live
• Olive Retail Anchor To Remain Secret Until TIF Is Approved
• Sale Of McNair Building, Eminent Domain Discussed Monday Night
• Local Government Watchdog Accuses TIF Chairman Of Conflicts Of Interest

Read other coverage here:

• Developer petitioned for Community Benefits Agreement, U. City has no minority inclusion policy for public-subsidized projects
• Curious Louis: The future of St. Louis' 'unofficial' Chinatown
• University City Big Box Plan Exemplifies All That Is Wrong
• Proposed development could change the texture of University City's gritty back door
• County Let University City Choose Some Appointees For Commission Weighing $70 Million Big-Box TIF
• U. City Has A Chance To Be An Innovator On TIF Development

Public documents can be found on the city's TIF informational web page.

Photo by J. Ryne Danielson/Patch