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O'Fallon Station plans coming together
Steve Pokin
Of the Suburban Journals
O'Fallon Mo Journal
Plans for O'Fallon Station, a mixed-use development in downtown O'Fallon, call for allowing merchants who locate there to charge a special sales tax of up to 1 cent.
Will Holman, one of three partners developing 11.2 acres off of West Elm Street, said the funds would be used for infrastructure enhancements such as wider streets and sidewalks, benches, trees, planters and older-style street lights.
"It will be like downtown St. Charles except the street will be wider," Holman said.
There will be on-street parking, he said.
Most of the project would be built on what is known as the abandoned lumberyard site. O'Fallon Lumber closed in the fall of 2001 and the property fell into disrepair. In fact, it had become the major eyesore of downtown O'Fallon.
In addition to the sales tax, those who purchase the 68 to 72 condominium and townhouse units would have to pay a special assessment of $3 or $4 a month.
The project would be just south of the Norfolk Southern Corporation railroad tracks. Several two- and three-story buildings would face the tracks and serve as a sound buffer for the homes.
The buildings near the tracks would have retail shops on the first floor and office space on upper floors.
The 1-cent sales tax and the real-estate assessment are allowed in development projects that the city designates as a Community Improvement District (CID).
A CID lasts 20-years ? less if the project generates higher revenue than anticipated.
Holman told aldermen at the Feb. 24 workshop session that he sought a CID designation and that the project would "die on the vine" without one.
Elected officials responded favorably, except for Alderman Lynn Schipper, Ward 2, who has consistently questioned why more and more developers are seeking special taxing districts to help fund projects.
"I think your project would be tremendous for that area," Schipper said. "But it's nothing more than a subsidy for you, paid for by the taxpayers and citizens."
Holman responded that the merchants who locate in O'Fallon Station would not sell big-ticket items, such as large-screen TVs, in which the additional sales tax might impact a shopper's decision.
Don Detrich, president of O'Fallon's Downtown Neighborhood Association, endorsed the project.
"I do want to welcome this project to the 'hood," he said.
O'Fallon Station is generally seen as a major step in the selective redevelopment of downtown O'Fallon.
In fact, Holman said, his group has several nearby buildings under contract, such as the Cooler tavern, Pay-Day Loan and a Mexican grocery store.
Both Ward 1 aldermen said they liked what they saw. The development would be in Ward 1.
"With all the blood, sweat and tears that has gone into the selective development of downtown O'Fallon, I am very happy with this," Alderman Bob Patek said.
"I know of enough people, myself included, who would be tickled to pay extra to get these shops closer to where we live," said Alderwoman Cheryl Hibbeler.
O'Fallon Station plans coming together
Steve Pokin
Of the Suburban Journals
O'Fallon Mo Journal
Plans for O'Fallon Station, a mixed-use development in downtown O'Fallon, call for allowing merchants who locate there to charge a special sales tax of up to 1 cent.
Will Holman, one of three partners developing 11.2 acres off of West Elm Street, said the funds would be used for infrastructure enhancements such as wider streets and sidewalks, benches, trees, planters and older-style street lights.
"It will be like downtown St. Charles except the street will be wider," Holman said.
There will be on-street parking, he said.
Most of the project would be built on what is known as the abandoned lumberyard site. O'Fallon Lumber closed in the fall of 2001 and the property fell into disrepair. In fact, it had become the major eyesore of downtown O'Fallon.
In addition to the sales tax, those who purchase the 68 to 72 condominium and townhouse units would have to pay a special assessment of $3 or $4 a month.
The project would be just south of the Norfolk Southern Corporation railroad tracks. Several two- and three-story buildings would face the tracks and serve as a sound buffer for the homes.
The buildings near the tracks would have retail shops on the first floor and office space on upper floors.
The 1-cent sales tax and the real-estate assessment are allowed in development projects that the city designates as a Community Improvement District (CID).
A CID lasts 20-years ? less if the project generates higher revenue than anticipated.
Holman told aldermen at the Feb. 24 workshop session that he sought a CID designation and that the project would "die on the vine" without one.
Elected officials responded favorably, except for Alderman Lynn Schipper, Ward 2, who has consistently questioned why more and more developers are seeking special taxing districts to help fund projects.
"I think your project would be tremendous for that area," Schipper said. "But it's nothing more than a subsidy for you, paid for by the taxpayers and citizens."
Holman responded that the merchants who locate in O'Fallon Station would not sell big-ticket items, such as large-screen TVs, in which the additional sales tax might impact a shopper's decision.
Don Detrich, president of O'Fallon's Downtown Neighborhood Association, endorsed the project.
"I do want to welcome this project to the 'hood," he said.
O'Fallon Station is generally seen as a major step in the selective redevelopment of downtown O'Fallon.
In fact, Holman said, his group has several nearby buildings under contract, such as the Cooler tavern, Pay-Day Loan and a Mexican grocery store.
Both Ward 1 aldermen said they liked what they saw. The development would be in Ward 1.
"With all the blood, sweat and tears that has gone into the selective development of downtown O'Fallon, I am very happy with this," Alderman Bob Patek said.
"I know of enough people, myself included, who would be tickled to pay extra to get these shops closer to where we live," said Alderwoman Cheryl Hibbeler.