City To Olive-Graeser TDD: More Money Is Not OK

Monday night, city staff will formally discuss Creve Coeur's decision not to grant a one-time payment of some $30,000 to the Olive-Graeser Transportation Development District to help cover administrative costs.

The TDD was established to help fund improvements to the intersection at Olive Boulevard and Graeser Road, through additional sales tax revenues.

Even though the construction element is complete, the board must stay in business to manage the collection of sales tax revenues.

The TDD agreement included an annual cap on administrative expenses starting at $15,000 with modest increases over time.

In July, the TDD asked the city for money to pay outstanding legal and other bills, some stemming from as long as 12 months ago. In a letter to the city in July, Les Steinberg, representing the TDD board wrote that a consulting firm involved in Missouri TDD operations elsewhere indicated annual administrative costs normally range between $25,000-$45,000 and that there were currently $37,000 in outstanding bills.

In a letter dated August 16 from City Administrator Mark Perkins to Steinberg, the city said no, saying it would reduce the amount of payments the city could receive as debts get paid down on the project. The letter said the parties with those debts knew there could be delays because of the cap.

The TDD proposal said there is a risk that if the board's legal counsel walks away, so too might members of the board.

The immediate-term ability of the TDD to generate more sales tax revene took a hit recently, even though a new tenant has been signed to fill the former Walgreens site after being vacant for more than a year.

could open by the end of the year, but as a 501c3 entity, will not generate sales tax.