CREVE COEUR — City leaders on Monday will consider abating $86 million in real estate taxes, as well as adding a special sales tax, to help developers turning the former Bayer office campus into a “Main Street†development.
The $985 million project, called Olia Village, calls for apartments, 130 townhouses, retail, hotels, office buildings and park trails on 96 acres at 10300 Olive Boulevard, formerly part of Bayer’s North American headquarters.
Edwardsville-based Fireside Financial and partner Jack Matthews Development are asking Creve Coeur to approve a blight declaration for the campus and abate up to 75% in real estate taxes on new construction for up to 25 years.
The abatements, which would exclude the townhouses, would be worth about $85.7 million in tax revenues generated by improvements to the site, according to developers’ estimates.
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Fireside is also asking the city to create a Community Improvement District that would levy a 1-cent sales tax, for up to 25 years, to help pay for renovations and on-site improvements.
The City Council will weigh the tax incentives at a Monday at 7 p.m. at the government center, 300 N. New Ballas Road. The council is expected to take a final vote April 8.
Mayor Robert Hoffman is in favor of the tax incentives for the project, which he said is an “overall investment†for future revenue.
“It’s a huge investment in our city and will greatly improve the quality on the east side of Creve Coeur,†Hoffman said.
Fireside Financial did not respond to a request for comment.
Olia Village would transform the landscape in Creve Coeur by adding a more pedestrian-friendly, mixed-use development centered around a “Main Street,†with space for public events.
The council approved preliminary plans in November after negotiating changes to address concerns from residents saying it would disrupt their neighborhoods. The changes include an additional tree buffer to shield homes and reductions in the height and scale of some buildings. Construction on the first phase is expected to begin by July, and the project is scheduled for completion by 2029.
In its , Fireside said the project can’t go forward without tax incentives because the former office campus is blighted and that redevelopment poses “extraordinary costs,†including new utility connections, new roads and sidewalks, land clearance and the need to work around a water main on the site. The Bayer west campus had received utilities through a private connection to Bayer’s east campus.
Developers asked the city to abate 75% of real estate tax due on improvements to the site for 10 years, and then abate 50% of the tax due to improvements for the next 15 years. The property tax abatement would divert an estimated $85.7 million in tax revenues to 16 taxing jurisdictions, . That includes $45 million from the Ladue School District and nearly $1.9 million from the city. No taxes would be diverted from the Creve Coeur Fire Protection District.
The would fund an estimated $73.3 million in construction costs over five years, including $31.7 million to demolish or abate and renovate five existing buildings, the oldest built in 1965. Four of the buildings — two office buildings, a cafeteria and a data center — will be renovated for other uses. An existing utility building will be demolished.
A developers submitted to the city found asbestos in three of the buildings, including the cafeteria, which also has water damage and no working HVAC or fire suppression system. The study also cites deteriorated curbs and sidewalks with no wheelchair ramps; above-ground power lines that need to be buried; and incidents of trespassing, vandalism and theft.
Linda Rezny, a resident of unincorporated ºüÀêÊÓƵ County who lives north of the Olia Village site, said she hopes Creve Coeur rejects the tax incentives package. Though she doesn’t live in Creve Coeur, she said, the city’s decision impacts tax revenues for people outside the border.
“A mere eight council members are going to decide the fate of all of this money,†said Rezny, 76. “I think any reputable developer should be able to make money using that piece of property without all of these jurisdictions having this tax money diverted from them.â€
Fireside also plans to petition for a Transportation Development District to levy a half-cent sales tax on the property to pay for road and other costs, according to city records.
The existing campus served as half of agribusiness giant Monsanto’s headquarters, which straddled Lindbergh Boulevard, before Bayer bought the company in 2018.
But after the coronavirus pandemic, the German agriculture conglomerate put the western half up for sale, citing a pandemic-induced shift in office needs.
Edwardsville-based Fireside bought the property in September 2022 for $55 million.