If You Need A Subsidy In Chesterfield, Where Don’t You Need One?
Monday night, the Chesterfield City Council gave preliminary approval to a new outlet mall development that plans to impose a Community Improvement District (CID) sales tax of 1 percent to help finance the project. This CID is a tax subsidy and a tax giveaway, just like any TIF (Tax Increment Financing), EEZ (Enhanced Enterprise Zones), or other route of central economic planning.
I will admit that CIDs are a little less noxious than TIFs. But, no matter what grading scale, tax subsidies are not needed in Chesterfield. The market for retail shopping is plenty strong that the city does not need to turn over the taxing authority to private developers. The real issue, however, is that with projects like this, we must acknowledge that we long ago passed the tipping point where basically every major development in Saint Louis and Kansas City is subsidized by the taxpayers. When you are going forward with subsidies for things like outlet malls in one of the nicest parts of the region, the idea of a free market is basically defeated. Once you subsidize outlet malls in wealthy areas, at what possible good or service do you draw the line?
The obvious answer is that there is no line and the use of tax dollars for subsidized, politically-connected developers is just a fact of life now in much of Missouri. That is repulsive.
As a small business owner in Chesterfield, Missouri, I would like to comment regarding the 1% CID sales tax the City is considering imposing to finance a new outlet mall in Chesterfield.
I would like to understand the thinking by the City officials that warrants a need for taxing the residents and businesses in our community based on the following criteria.
The City of Chesterfield is doing just fine without an outlet mall. There is currently considerable and variable shopping areas that cover the needs of the community. Our restaurants hardly need more traffic. It’s difficult at the present time to not be required to wait for a table during the dinner hour.
The traffic on the bridge over the Missouri river does not need to be increased. The thought of adding yet another lane is daunting.
Now we have two different outlet malls fighting for the privilege of moving into our outstanding location in Missouri….and… we have to supplement them why?
I could understand our city officials needing to attract a new business by punishing the community with a sales tax if the location was unsuccessful but not when businesses are actually vying for the privilege.
My suggestion to the City of Chesterfield is to withdraw any idea of taxing those of us who made our City what it is without TIF or CID financing. If one of the developers bows out of the desire to build here, the other will benefit. If they both bow out, perhaps a location that needs the business more such as East St. Louis could become attractive to them.
Comment by Hannelore E. Bugby — May 10, 2012 @ 11:17 a.m.