ST. CHARLES • St. Charles County Executive Steve Ehlmann is opposing a $9.6 million tax subsidy for a Schnucks-anchored complex planned near Lindenwood University.
Ehlmann, a longtime critic of such tax breaks, supports the project itself and St. Charles city officials' request for $6 million in county aid for the extension of nearby West Clay Street.
However, he said a city tax-increment financing subsidy would be "bad public policy" because it would channel into the project some of the new property tax revenue generated that would otherwise go to the St. Charles School District and other governments.
"If the city can do a TIF to make others pay for what is their responsibility, when are we going to start using city money for schools?" Ehlmann said Friday.
David Leezer, the city's economic development director, noted that the TIF would capture only some extra tax revenue that otherwise wouldn't be generated. So, he said, the project still would result in a net tax gain for the other governments.
"I can guarantee you they're going to get none of it the way it is now," he said.
The project, which also calls for a pharmacy, other stores and restaurant space along First Capitol Drive, would go up on university-owned land replacing vacant older homes, commercial buildings and other structures.
New city property tax and sales tax revenue also would be used in the TIF. But unlike with some other projects, no county sales taxes — the main revenue source for county general operations — would be tapped.
Ehlmann announced his opposition Thursday to a city-county TIF commission. There, he released statistics showing the average pay of St. Charles city employees exceeds that of county employees, workers for three other major cities in the county and teachers in county public schools. If the city was more efficient, he argued, it could cover the full subsidy itself.
Favoring the TIF is Mayor Sally Faith, who said it is essential to the project, which also involves moving the city's main post office to the 20-acre site.
Ehlmann has six appointees on the 12-member TIF panel. The final say is with the City Council, where a two-thirds majority vote can overrule commission rejection.


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