Aldermen dissolve Sappington Square CID

Crestwood board voted in ’06 to form CID for retail center

By Staff Report

The Crestwood Board of Aldermen unanimously voted to approve the termination of the Sappington Square Community Improvement District, or CID, ending the collection of a one-cent sales tax.

Aldermen voted in 2006 to establish the Watson Road retail center’s CID to help fund up to $2.5 million of the roughly $13 million project. The funding was to be generated through a 20-year, one-cent sales tax at Sappington Square.

Pulaski Bank purchased the property in December 2010 after Sappington Square LLC defaulted on a loan from the bank to redevelop the site. Pulaski Bank had foreclosed on the property.

The Board of Aldermen voted 4-3 in September 2010 to reject a new development agreement for the 5.7-acre site.

City Attorney Rob Golterman told the board the Sappington Square CID Board of Directors recently passed a resolution to repeal the 1-cent sales tax in the CID.

“A condition of that repeal is the approval of the petition to terminate the CID district … If that occurs, the tax will be repealed on that project and there will no longer be a Sappington Square Community Improvement District,” Golterman said.

Upon approval of the CID’s termination, Golterman said notifications need to be sent, “primarily to the taxing authorities,” and he believes that process will be completed within 30 days.

The petition for termination of the Sappington Square CID states “a reserve account with a minimum opening balance of $10,000 shall be established with funds currently held in the trust fund.”

Golterman said those funds then would be used to pay for “any costs associated with the termination of the CID district.”

The remaining balance, $79,000, would go back to the current property owners.

“It is our intention to include any legal fees in connection with the repeal of the tax and the termination of the district, as well as a final audit of the district,” Golterman said.