The Crestwood Board of Aldermen planned to conduct a public hearing earlier this week on the termination of the Sappington Square Community Improvement District, or CID.

The Board of Aldermen was scheduled to meet Tuesday — after the Call went to press — to consider a petition to terminate the CID that was filed last month by Pulaski Bank, which owns Sappington Square.

If aldermen vote to adopt an ordinance terminating the CID, a 1-percent sales tax now collected on purchases within the district will be abolished.

The Watson Road retail center, previously owned by Sappington Square LLC, was purchased by Pulaski Bank 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 original CID was approved by the board in November 2006 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.

In September 2010, the board voted 4-3 to defeat a new development agreement involving the city, Pulaski Bank, the Sappington Square CID and Priority Property Holdings LLC for the 5.7-acre site on Watson Road.

In May 2011, the board tabled a second reading of an ordinance to determine if the CID’s 1-percent sales tax would continue through a new development agreement with Pulaski Bank.

Some aldermen have been opposed to the city entering into a new development agreement with the property owner Pulaski Bank, its subsidiary and the CID.

The board has debated at length whether the CID — along with the 1-percent sales tax levied on purchases made there to reimburse certain costs to the developer — should be discontinued.

During an aldermanic candidate forum earlier this year, Mayor Jeff Schlink noted the original Sappington Square redevelopment agreement had a stipulation that the project needed a certain percentage of retail.

“Obviously the retail component is because you can’t pay anything off if you’re not generating (sales tax) …,” Schlink said at the forum. “Right now, we don’t have a development agreement on there, but we continue to pay.”

City officials, according to Schlink, have tried to work with Pulaski Bank while Sappington Square shoppers continue to pay the additional 1-percent sales tax on purchases.

In a July 18 memo to the Board of Aldermen, acting City Administrator Karl Kestler wrote, “Upon termination of the CID, the tax will be abolished.”

The petition to terminate the CID states a letter dated April 23 confirmed “there are no obligations due and owing to it under the cooperative agreement, including with respect to any reimbursable project costs or operating costs as such terms are defined in the cooperative agreement, and has waived and disclaimed any further right, title and interest in and to the cooperative agreement.”

In a separate matter Tuesday, aldermen were scheduled to discuss selection of bond counsel and consider issuing a request for proposals, or RFP, for planning services for the proposed redevelopment of Crestwood Court.

Gilmore & Bell and Thompson Coburn previously submitted proposals to the city to serve as bond counsel. However, aldermen in March placed the selection of bond counsel on hold indefinitely.

Centrum Properties, which owns Crestwood Court, presented proposed redevelopment plans to the board and community in June. Centrum Properties and Angelo, Gordon and Co. purchased the mall from the Westfield Group in 2008.