Howard Bend Levee District: Property owners and Harrah's will foot the bill for higher levee
The development plan for 8,600 acres of flood plain in Maryland Heights lacks one element that aided similar projects in Chesterfield and St. Charles - a public subsidy.
The newly elevated levee that protects the land in Maryland Heights from the powerful Missouri River was financed not by the federal government or local sales taxes, but by the property owners who would benefit from the project.
The Howard Bend Levee District issued $21.2 million in bonds to pay for the work, and will repay the money through annual assessments on businesses and landowners.
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Foremost among them is Harrah's Entertainment Inc., which operates a casino and hotel at the northern end of the development zone.
Harrah's accounts for more than half of the district's $1.71 million in annual assessments, according to St. Louis County tax records.
Harrah's also pays taxes to the city on admissions and winnings from gamblers. That money has been poured into roads and other improvement projects, including the new Maryland Heights Expressway, which will run through Howard Bend.
Chesterfield, St. Charles, Hazelwood and St. Peters all used tax increment financing to pay for work on levees, earthwork, roads and other infrastructure for their flood plain developments.
Tax increment financing is a mechanism that diverts new tax revenue generated by a development project to help cover the cost of the improvements.
The manner in which Harrah's is taxed and the amount of revenue the casino generates for Maryland Heights made the use of a TIF not only impractical but unnecessary.
In addition to helping finance the new 500-year Howard Bend levee, Harrah's has surrounded its casino complex with a separate, private levee.
Maryland Heights intends to convert Howard Bend from a largely agricultural and recreational area to a mixed-use commercial area, complete with office towers, service and distribution businesses and some light industry.
Elisa Crouch and Mark Schlinkmann of the Post-Dispatch contributed to this report.
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