Ferguson council directs $1.17 million from economic development fund for downtown repairs, grants and demo backlog

The Ferguson City Council voted unanimously June 3 to appropriate money from the city’s Economic Development Sales Tax (EDST) fund for a package of downtown and neighborhood projects.

The council’s action sets aside $220,000 for renovation of the Whistle Stop and caboose properties, $500,000 for demolition of blighted houses near 501 Plaza, $500,000 to cover the city’s matching share on Surface Transportation Program (STP) grants, $50,000 for a stockpile of Victorian-style light standards, $100,000 for a disaster-recovery loan/grant program for damaged sales-tax-generating businesses, and $300,000 for the Ferguson Neighborhood Improvement Program (FNIP). The funds will be drawn from EDST balances the presenters described as approximately $6 million.

Those allocations come from a set of six recommendations delivered to the council by Steve Weigert, an advisory-group presenter, and were moved into a single ordinance-style appropriations motion on the council floor. Councilman Kazoff moved the package; Lamica Covington seconded. Council members then adopted two amendments on the floor (raising the Whistle Stop amount to $220,000 and increasing demolition funding) before approving the full package by roll call.

Why it matters: EDST is a restricted revenue stream that the city uses for downtown and economic redevelopment activities. The approved uses — building renovation, demolition of unsafe properties, grant matching for federal transportation projects and a new small-business disaster program — direct one-time funds toward visible downtown repairs, grant leverage and help for businesses that produce sales tax.

Council discussion and conditions: During the debate Councilwoman North said she could support FNIP funding once it was clarified that the money would come from EDST rather than the general fund. Weigert and staff said the disaster-recovery program would be targeted to sales-tax-generating businesses, require insurance and require a post-award period during which the business must remain open. The FNIP allocation carries the council’s additional condition that no more than 20 percent of the awarded FNIP funds be used for administration and that the finance director have authority to examine FNIP records on request.

Demolition backlog and in-house work: Council members pressed staff on the demolition request after an amendment increased the demolition line to $500,000. City staff reported a backlog of properties: roughly 10 additional homes currently qualified for demolition and 27 more under notice/having hearings in the fall. Public works staff said bringing demolition work in-house (buying equipment to perform removals) could reduce per-structure costs to roughly $10,000–$15,000 and would increase the number of demolitions achievable in the coming fiscal year.

Grant matching and downtown lighting: The council and staff discussed that the $500,000 STP match is intended to cover several projects already in design, including Paul Avenue. The $50,000 for Victorian lights is for replacement poles only (stock), not installation; staff said some replacement standards already exist in other budgets but additional stock was needed to restore downtown standards quickly after vandalism or accidents.

Implementation steps and oversight: The motion puts the funds into the EDST appropriation and requires staff to develop program details — for example, the disaster-recovery grant program will require an application structure, insurance requirements and per-business caps to be drafted and brought back to council. The FNIP allocation is subject to the finance director’s oversight and the administrative-cost limit the council set.

Votes at a glance: The final appropriation package (as amended on the floor) passed on a roll call with Councilman Kazoff, Mayor Jones, Councilman Franklin, Councilman Palmer, Councilman Williams, Councilwoman Noah and Councilwoman Covington voting “Aye.”

Ending: Staff said the EDST recommendations will be incorporated into the ordinance that the council will consider at its next regular meeting, and that program-specific rules for the recovery grants and FNIP will be drafted for council review and approval.