Proposition "E"
Economic Development Sales Tax

In September of 2005, the City of Creve Coeur completed a nearly year-long public process to determine a plan for a new Downtown Creve Coeur. The Downtown Plan was approved and included many recommendations for achieving a pedestrian-friendly, dense mixed-use environment for the planning area located south of Olive Boulevard, mostly between New Ballas and Old Ballas Roads.

In September of 2006, the City of Creve Coeur approved an Implementation Study for the Downtown planning area. The study was conducted by Development Strategies, Inc. for the purpose of determining the costs associated with the potential improvements to the Downtown and the possible tools available to help fund these improvements. The DSI Study began with a determination of potential public improvements, including new and improved roads, major public open space, Downtown gateway features, streetscape of existing roads, and burial of power lines. Next, the report analyzed the probable costs of these enhancements and determined the total to be around $15 million, and with construction of parking garages, it could be around $40 million. Finally, the study considered the available options for financing the Downtown improvements.

The study looked at funding mechanisms such as a Transportation Development District (TDD), Community Improvement District (CID), or Tax Increment Financing (TIF), but determined that they have certain limitations to application on a Downtown-wide basis. The most promising source to help pay for the needed public improvements, according to the report, would be passage of a ½ cent local economic development sales tax. This city-wide tax offers flexible use and is estimated to generate in excess of $2 million a year on an incremental (pay-as-you-go) basis. The tax revenues can be used for purposes beyond the Downtown Plan, including infrastructure and aesthetic improvements along commercial corridors, utility line burial, as well as marketing, training, grants and loans for economic development projects. An economic development tax board is set up with a representative from the school district, three city representatives, and one county representative, and is responsible for overseeing use of the funds and approving development plans and projects. The sales tax must be approved by voters.

The City's Economic Development Commission studied this option and worked with the Creve Coeur-Olivette Chamber of Commerce to draft language into an ordinance. On November 29, 2007, the EDC voted to recommend a one-half of one percent Economic Development Sales Tax to the City Council for placement on the ballot in 2008. On March 24, the Creve Coeur City Council unanimously approved the placement of a one-half cent sales tax on the June 3rd ballot.

For more information on economic development, contact Michael Hurlbert, city planner and economic development administrator, at (314) 872-2551.