Crestwood board approves dissolution of Sappington Square CID

By Staff Report

The Crestwood Board of Aldermen voted unanimously last week to terminate the Sappington Square Community Improvement District, or CID.

The Watson Road retail center’s CID was established in 2006 to assist in funding up to $2.5 million of the roughly $13 million project. The funding was expected to 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 voted 4-3 in September 2010 to reject a new development agreement on the 5.7-acre site.

City Attorney Rob Golterman told the board the Sappington Square CID Board of Directors recently adopted a resolution to repeal the 1-percent 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of that repeal is the approval of the petition to terminate the CID district … If that occurs, the tax will be repealed on that project and there will no longer be a Sappington Square Community Improvement District,” Golterman said.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 would then 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.