Letter from the Mayor

Dear Friends, neighbors and interested parties,

        I am writing to clarify some misconceptions with respect to the Kenrick Plaza Development.  Because I have had a number of emails and many of them are questions with respect to the same issues, I decided it would be helpful to respond to the entire email list.  I would like to say that I have read every email and reviewed every link that has been sent to me, but because of time limitations, I have not been able to respond to each individual email.  With respect to the motion that was passed on Monday September 27, (5-1 vote), this motion allows us to gather specific information relative to the project.  The motion reads as follows:

“I move to designate G.J. Grewe, Inc. as the preferred developer of the Kenrick Plaza Redevelopment Area,subject to the following conditions: (1) within 60 days, the developer shall enter into a preliminary funding agreement acceptable to the City, whereby the developer deposits funds in an amount sufficient to cover the City’s costs of preparing a redevelopment plan, considering the redevelopment project, and negotiating a redevelopment agreement; (2) within 90 days of this date, the developer shall submit a revised concept site plan acceptable to the Board of Aldermen in its sole discretion; and (3) within 180 days from the execution of the preliminary funding agreement, the developer  and the City shall enter into a redevelopment agreement acceptable to the Board of Aldermen in its sole discretion. (high light for emphasis)

As you can see, there is a lot of work to be done, as well as a number of conditions to be met.  When I have been asked about specific information, site plans, amount of TIF, length of TIF… I do not yet have that information - this is the time to gather the information.  We will have attorneys, financial consultants, and PGAV consultants to work through the process of getting the information we need to see if the project can move forward. Also, several of the aldermen are contacting neighboring communities to get feedback on the process of bringing a Walmart to their community, and how the Walmart has affected their community.

-   There have been some questions as to whether or not I will come and speak with different “groups” in Shrewsbury about the process.  I would be happy to and have made myself available to the different groups that would have me.  I have already spoken at the VAK board meeting, Our Lady of Life, Saint Joes Apartments, and Kenrick Manor Subdivision meeting.  I would be happy to speak with any other group that would like.  

-   It is because of the citizens input that the city has been looking into the closing of Trianon , and eliminating service drives onto Cardinal Glenon Drive.

-   At present the area that is being redeveloped is from the drainage ditch westward to the cinema only.

-   The 2010 budget, as well as the 2009 budget and 2009 audit, are on the Web site and have been up for some time.  Click on financial documents and there you will find the budgets.

-   Closing our pool to compensate for the declining revenue in the budget will leave the city with a decaying pool, that is not yet paid for, as well as Kenrick Plaza which is in decline.

-    I have been asked if the city was trying to "wear people down" by moving so slowly with all of the meetings and others have asked why we have gone so quickly.  I can only say that we have moved at a pace that we believe is in the best interest of the community and has allowed all citizens to give their feedback to their aldermen.  No one should feel that they didn't know about the redevelopment or did not have time to address their aldermen.  Furthermore, the time we have taken has allowed us to gather preliminary information about both proposals.

-    The way we notice our open meetings with the BOA is through posted notices around city hall, our email list, the sign in front of the police station and some of these recent meetings have been noted in the Webster/ Kirkwood Times. Board of Aldermen meetings are always on the second Tuesday of every month at 7:00p.m. and work sessions can vary to accommodate the aldermen's schedule.

Thank you for your input.  Again, if you would like for me to come and speak at your "subdivision" meetings, I would be happy to.  

Sincerely,

Felicity Buckley, Mayor

VOTE - MONDAY at 6PM!!!

• Final Discussion over the Kenrick Plaza Redevelopment Proposals
• Vote on the Option to Designate a Preferred Developer for the Redevelopment of Kenrick Plaza by Official Motion and Roll Call Vote

It's important for you to bring everyone you can to this vote and show your opposition.

Monday, September 27^th, 2010 at 6:00 p.m. in the Aldermanic Conference Room of the Shrewsbury City Center at 5200 Shrewsbury Avenue, Shrewsbury, Missouri.

"See you at Wal-Mart" Notes from Town Hall Meeting 9-20-10

The Mayor and Board held a "Town Hall Meeting" to go through the questions submitted by the community.  They only took written questions to keep things civil. Although it was a good format for civility, it did not allow for any follow up discussion.  The crowd was angry and it was difficult to get past the obvious fact that the Mayor and the Board (as a whole) had already made the decision to go forward with the Wal-Mart development.  The "Town Hall Meeting" was just to try to explain their side of things. A woman in the crowd summed it up best at the end of the night when she said sarcastically to her friend "See you at Wal-Mart."

Mayor doesn't think that Kirkwood, Town and country, etc. have been hurt by Wal-Mart.  (Did not mention Maplewood)

Traffic is a legitimate concern – Trianon will become a dead end at the development.

A lot of people in the area think that will be a good idea.

Will make sure there is emergency access.(They did not say how)

Any other type of development without anchor store and cross traffic would not be successful.

Everyone will be using same exit in Kenrick manor, but they will just have to deal with the inconvenience.

Crime – street being closed off and drop in development will decrease problems. 

Chief of Police thinks that stopping the cut through will cut down in traffic. (Not sure if he understands how much traffic will be pushed through other cut throughs).

Police will determine how much new personnel will be needed. Not worried about it.

Property values – would have been affected with lots of cut through traffic, but now will not be a concern. (Not sure how they can possibly believe this)

Power house gym will not be affected.

Mom and Pop stores were put out of business by Shop and Save, Dierbergs, etc. (so might as well make the same mistake again, right?) Some stores survive because anchor stores come in. Dierbergs welcomes Walmart? Because of traffic...

Fire chief doesn't need another firehouse for this development

Trying to be more vigilant about keeping areas from being blighted.

Community was concerned about certain businesses trying to come in several years ago and police agreed so they kept them out.

What will happen to existing tenants? Will be taken care of through relocation process. Relocation policy for current tenants - can get from city hall.

What will be done to protect adjoining property during construction.  City and developers will take care of it.

What are budgetary concerns? See handout about sales tax declining.

How much will tax rate have to go up if we do not have revenue coming in for deficit? Property taxes will have to increase 44% for first year to cover deficit.

Why are we doing development during bad economic times? Shrewsbury is bad economically before and after economy went in tank nationally.

Not only about money, corridor is in danger.

TIF – some people think TIFS are just the way things are. Others think that big companies should have to pay. Dierbergs came in via some type of TIF.

CID and TDD – taxes that are on products that are sold within redevelopment.

Dierbergs will not have to help pay off TIF. Money to pay off TIF will come from revenue made by development. City's general fund will not be responsible for paying off bonds. Unlike Manchester and McCausland. (This doesn't make sense.  Who's fronting the money if it isn't coming from City's general fund?)

Inconvenience Trianon closing will have on those residents – does that inconvience outweigh the benefit of the city.

25 acres of property – don't just go to store and say “Hey will you develop this?”

Kirkwood took out Meachum Park not their own neighborhood – Development will not take any houses

Even though TIF will take 15 years we will start getting money throughout the whole time.

What will city do to keep same area from more blighting? City will try to do a better job reinforcing our codes.

What can we do if developer does not stick to agreement? - Legal issue

Who is going to own property? Lipton

Will entrances by PH Gym remain open? Yes

How will traffic affect other streets in community? Inconvenience we'll have to deal with. People are accustomed to current low level of traffic due to theater going out of business.

When will you send info in writing with studies, etc. ? Info is on website and will continue to go on there.

Would any city service be cut if development doesn't go through? Yes, don't know which ones.

Why don't we put a use tax in place? Has been looked at but county shot it down. Will look into it further.

If we wait until economy gets better, ability to negotiate goes down. This issue has been looked at for a long time.

Can we raise taxes? Yes – we can vote on that, but taxes will have to continually be raised because deficit will continue to increase.

Our lady of Life will discuss with Mayor tomorrow

How many voters in this community? – over 5000

Won't have certain info until we select a developer.

Town and Country development was abandoned by Wal-Mart – A: that's exactly what happened with the cinema.

There are only 2 responses to RFP and Capital land pulled out.

Length of Walmart stays around – seems to be about 15 years (Isn't this the exact length of the TIF?  Does no one else see the problem with this???)

Lighting and 24 hour noise – will be looked into during site plan. Shnucks is 24 hour and not a distraction Property being lowered will help.

Why can't road be moved? Not cost justified.

Why do you want to destroy our quality of life? We have to have revenues to maintain quality of life we currently have.

What is the alternative to doing nothing? It will become a low rent district.

Why are we doing business with a sleezy developer? It is clear to Mayor that developers are difficult to deal with. Should not give up our future because of the personality of a particular person.

Why do we keep addressing a Wal-Mart? That is what has been proposed. The board of alderman has been told that not everyone is opposed to a Wal-mart. Some are opposed to Wal-mart no matter what.

Values of Wal-mart are not the values of other people. Not up to the Mayor to get into that.  Plus other stores have the same issues.

When can we see the final design? Not for a while. Not until developer is chosen, etc.

Can we run Shrewsbury Ave though park? Haven't looked into it.

How do you recall the mayor and board of alderman? If you don't want something make sure you know what the alternative will be.

What is the Citizens Advisory Committee? Info on Shrewsbury website

GJ Grewe is developer – no tenants have agreed yet.

Big box is how everyone shops now so there is no way around it.

Traffic increases on Kenrick and Weil? Not discussed.

Both Laclede (county road) Watson (state road) will have to deal with their own traffic problems.

Grewe proposal does include a Wal-Mart.

How much money will we make during and after TIF? Haven't negotiated yet, don't know.

How will citizens be kept involved with Wal-mart design, etc.? Don't know yet, can email us with concerns or thoughts.

Businesses do come and go no matter if it's a Wal-mart or not.

The developers will be left with the junk bonds if revenue does not come in, not the city.

Where will you get tenants? Don't know, up to developers.

Are there other options? No.

The area has always been commercial.

Other questions will be posted on website and answered.

Mayor knows that people are concerned and board has made a great effort to listen to community.

Notes from Work Session 9-7-10

These are some of the notes I took at the Work Session Meeting on 9-7-10.  There were around 100 people there to listen. The Grewe team had a lot of different speakers to go over each part.  Got the vibe of "Trust us and we'll make you all rich." FYI, Grewe was wearing a Rusty-Orange suit.

There has not been a traffic study performed yet. Will not be performed until after site plan is approved.

The developers are proposing a pedestrian walkway that possibly cuts through the rock under the train tracks just before the bridge.

The development will close Trianon Pkwy at the site.  Trianon will dead end at the site and there will be no direct street from Laclede to Watson near the development.

Grewe will continue to lease and manage the site. They want the stores to be open 24 hrs/day because they claim they expect that much business. Claim they will set up the truck deliveries for whatever schedule works for the city.

Developers will change elevation and architectural feature of cables from towers. Bring grade down 100 feet so that junior stores are lower than wall so residents don't look at them.

TIF Schedule

• Tif commission 10/12
• Commission sets public hearing 11/17
• Commission holds public hearing 1/05/11
• City and Grewe finalize agreement 2/1
• City adopts TIF ordinance 2/8
• City approves agreement 2/8
• Grewe constructs development 2011-2012

18^th month construction schedule

TIF financing 20 years

2009 city operating rev. - $5.7 million

prop tax – 10.1 %

utility tax 19 %

sales taxes – 34.9 %

Police budget for 2010 - $1,829,699

Taxable sales have declined since 1999

Since 2005 general fund sales taxes have declined annually by 3.3% on avg.

Expenditures have been flat since 2007

Kenrick Plaza sales taxes – 2000 $11.2 mil

2009 $4 mil

Estimates from developer 

2013 $75 mil City tax revenue ($988,556) (Assuming TIF - 50%)

Post TIF City will get $2.5 mil per year

Incentive limited to $15 mil will pay off in 13-15 years

TIF was 35% instead of avg. 25% – 1% sales tax total on TDD or CID or combo –take this out and it's only 23% ----a full 1% is going into $15 mil

If they can issue TIF notes that will be replaced by bonds then they will do it if banks allow. The cities general fund is not obligated to pay money if development does not generate TIF revenue levels. Bank financing is contingent upon financial agreement of $15 mil by city.

TDD will have board members - non voting member by city. At least 3 members be the developers. Board only has discretion on timing.

Developers don't know Don't know rate of return or the tenants.

Eminent domain – requesting authority. Have to relocate tenants, easement issues, etc. will try to negotiate, but need to have power to able to bully people if they say no. They promise to be nice about it.

Funds to help Police during TIF - $1 million will go to police from sales minus half for TIF

Creek, MSD, Carpet tile store, sanitary treatment – They will apparently just take care of it with magic.

Then a lot of sucking up by Grewe.

Back of Brentwood Square has same walls enclosing. Will be 20-30 feet tall.

Residents association questions

Shopping centers have a sea of asphalt, how will this be different? A: hopefully there will be enough walking area. Sanitary treatment center is concrete box underground that filters debris from water runoff.

Can we get a copy of site survey to get a better understanding of current conditions. A: useless without new site plan. 

We really want the site plan anyway. A: Come to my office. (Grewe)

No decision on Kenrick Plaza developer in Shrewsbury

One developer didn't show up, telling the city it didn't want to make any promises it couldn't keep. The other developer, which has made a Walmart supercenter the cornerstone of its proposal, gave a brief presentation and asked the city to pick the company immediately so plans could move forward. City leaders declined to do so...