Council Votes Down TDD Financing Proposal

Creve Coeur City Council members met in a special session Monday night and unanimously decided to opt against a move that would have changed the terms of the city's commitment to the Olive-Graeser Transportation Development District (TDD).

The current agreement calls for the city to pay $55,000 annually to help retire debt over 40 years if bond financing for the project, could not be secured. A proposal on the table from the investment firm Stern Brothers would have had the city commit to those payments for 25 years.

City Finance Director Dan Smith repeatedly referred to the arrangement as a complicated one, while Ward 2 Councilman called the situation "perplexing" as city officials grappled with the fact that there were so many unknowns in judging if the Stern Brothers bond financing option might be available  down the road, or if a better deal might come along.

After adjourning into executive session to discuss legal concerns over the decision, the council came back and voted against the revised terms.

At the same time, council members opted to defer action on another proposal which would have the city buy "Series A" notes on the $1.25 million project, allowing the city to receive the 1 percent sales tax generated in the TDD.

Editor's Note: A previous version of this story indicated the city council opted to defer on a proposal that would have the city purchase "Series A" Bonds on the project. City Finance Director Dan Smith tells Patch that the proposal involved Series A Notes, not bonds. Smith also pointed out that Council members voted against the Sterm proposal because the idea of buying notes on the project appears to be a better option for the city down the road.