CREVE COEUR — A planned redevelopment of a former Bayer campus here into a nearly $1 billion mixed-use “Main Street†concept is expected to begin construction later this year now that the city approved a controversial tax incentives package for the project.
The Creve Coeur City Council on Monday voted 6-1 to abate an estimated $86 million in future real estate taxes and approve a special sales tax to help pay for Olia Village, a $985 million project by Fireside Financial and Jack Matthews Development that calls for apartments, townhouses, retail, hotels and offices on 96 acres at 10300 Olive Boulevard.
The move paves the way for a project meant to transform the landscape in Creve Coeur with a pedestrian-friendly, dense development with greenspace and a “Main Street†for public events, joining Creve Coeur to a list of other west ºüÀêÊÓƵ County suburbs aiming to create new city centers.
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In Chesterfield, two multibillion-dollar projects are poised to create a “downtown†of thousands of new apartments and townhomes, dozens of retail shops and offices and greenspace, supported by $353 million in tax increment financing the city approved in 2022. In Brentwood an industrial corridor along Manchester Road is undergoing a $400 million revamp into apartments and restaurants and a public trail. In Wildwood, plans call for a Village Green park and public gathering space just west of Wildwood City Hall. Town and Country in recent years opened its “Town Square,†a 9-acre recreational and retail space at Mason and Clayton roads.
Creve Coeur Mayor Bob Hoffman said Olia Village is an unprecedented investment in the city of about 18,500 people.
“This is a tremendous opportunity for a city of our size,†he said.
But residents blasted the city for approving tax incentives they said were unnecessary and would hurt future funding for government and public school services.
“They’ve been very generous to the developers at a heavy cost to Creve Coeur taxpayers,†said Elizabeth Link, one of about a dozen residents who opposed the incentives Monday and at a public hearing March 25.
The city’s action Monday abates as much as 75% of real estate taxes on future construction for 25 years. The abatement does not apply to 130 townhomes planned for the site. An estimated $85.7 million will be diverted from 16 taxing jurisdictions, including $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 council also on Monday voted unanimously to create a Community Improvement District to levy a special 1-cent sales tax on the site to help offset costs of construction, which is expected to begin in July and end in 2029.
Fireside is also expected to petition for a half-cent sales tax levied by a Transportation Development District to fund road improvements.
Fireside and Jack Matthews said they needed the incentives to help offset extraordinary costs, including construction of public utility connections, challenging topography and working around three water mains running through the site.
A blight study cited asbestos in three buildings planned for renovation, including an underground cafeteria with extensive water damage and no working HVAC or fire suppression system; deteriorated curbs and sidewalks with no wheelchair ramps; above-ground power lines that need to be buried; and incidents of trespassing, vandalism and theft.
Matt Pfund, president of Jack Matthews Development, said Monday that negotiations with the city for incentives had required “much give, take and compromise.â€
But residents argued the site was prime real estate and easily profitable to redevelop without the breaks.
“A smaller incentive would still get it done,†resident David Caldwell said Monday.
City officials said public services would not lose any current tax revenue but would gain from an estimated total of $127 million in real estate taxes over the abatement period.
Councilman Dan Tierney was the lone vote against the incentives Monday.
Outgoing Councilwoman Sari Neudorf was not present at the meeting. Neudorf, appointed to the council in 2022, lost reelection last week to challenger Drew Newman. Newman won 68% of the vote, 327 votes to 148.
Former longtime mayor Barry Glantz, Hoffman’s predecessor, was a consultant for Fireside and Jack Matthews on the project.
The Creve Coeur City Council approved preliminary plans for Olia in November after negotiating changes to address concerns from residents saying it would disrupt their neighborhoods. The changes added an additional tree buffer to shield homes and reduced the height and scale of some buildings.
Edwardsville-based Fireside bought the property in September 2022 for $55 million after Bayer put the western half of its campus for sale, citing a coronavirus pandemic-induced shift in office needs.