O'Fallon committee backs 5% amusement tax to rebate Marcus Theatres' mine-remediation costs

The O'Fallon Finance & Administration Committee on an advisory vote recommended the City Council approve a 5% amusement tax applied to Marcus Theatres ticket sales, with 99% of the revenue rebated to Marcus to reimburse specified remediation and repair costs.

Grant Bartsch, presenting the proposal, said the company discovered mine subsidence beneath two expanded screens and has been working with structural engineers and remediation contractors. "That is a very expensive venture ... their bills are a little over $9,000,000 to complete that work," Bartsch said. Under the proposed agreement, the city would collect a 5% tax on tickets sold for Marcus films and remit 99% of that tax back to the theater to reimburse eligible costs; the city retains 1% to cover administrative and legal review of receipts.

Bartsch said the rebate would continue until reimbursable costs are paid or for a maximum period (staff compared it to other incentive timeframes), and finance staff will audit submitted receipts and manage the reimbursement process. Committee members asked who would monitor the reimbursement threshold; Bartsch replied the finance department will review receipts and sales numbers and process payments.

During public comment, resident Alan Long asked whether the agreement would set a precedent for future private remediation claims. Bartsch pointed to prior, larger redevelopment agreements (including a hospital TIF) and other sales-tax rebate agreements as precedent, and described the amusement-tax rebate as a narrowly targeted, customer-paid mechanism limited to Marcus ticket buyers.

The advisory recommendation moves the ordinance to full council for consideration. If approved by council, staff said the arrangement would not affect other properties and would be implemented with ongoing financial oversight.