Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Tif Finance topic
No spam. Unsubscribe anytime.
City finance director reports RPA 1 sales-tax increment roughly $742K in 2023, $997K in 2024; additional TIF payments noted
Summary
Finance Director Keith Cole briefed council on RPA 1 (Olive redevelopment) tax revenues: $742,005.72 in 2023 and $997,009.23 in 2024 from three city sales taxes; city attorney said the redevelopment agreement provided additional payments totaling $3,460,000 in a combination of a one-time $3 million payment and annual amounts.
The University City finance director presented an update on tax-increment financing (TIF) revenue for Redevelopment Project Area 1 (RPA 1) at the Jan. 27 council meeting, showing higher sales-tax increment collections since the Costco-led development opened.
Keith Cole told the council the three city sales taxes tied to the area generated about $742,005.72 in calendar year 2023 and about $997,009.23 in 2024. Cole explained those figures are the increment above the February 2018 tax base for the area and said the city’s total collected from the redevelopment so far is summarized in the meeting materials.
City Attorney Mulligan supplemented the presentation with information on redevelopment-agreement payments to the city. He said the agreement provides annual payments of $92,000 (received for several years) and a one-time payment of $3,000,000 tied to the Costco transaction; Mulligan summarized the combined receipts as $3,460,000 when adding five years of $92,000 ($460,000) to the $3,000,000 payment.
Council members asked for a comparison between pre-development revenues and current receipts. During discussion Council Member Clay and staff characterized the change as an increase from roughly a $140,000–$200,000 annual base before development to approximately $1,000,000 per year since the larger tenants opened; staff said the annual amount should rise further when Dierbergs or Target open as anticipated under the redevelopment schedule.
Cole and the city attorney noted the redevelopment agreement’s mechanics: part of the economic-development sales tax (0.25%) is remitted to the city as increment, while other rates (fire and park/stormwater taxes) allocate increment differently and feed a special allocation fund used to pay TIF obligations. Under the amended redevelopment agreement, the annual $92,000 payment will increase to $200,000 once either Dierbergs or Target opens.
City leaders asked staff to provide more precise historical comparisons of pre-development tax receipts and to supply any backup documentation for publication and budget planning.
