CRESTWOOD, Mo. — Dierbergs Markets will seek $17 million in tax incentives for part of a redevelopment of the former Crestwood Mall site in south St. Louis County, according to newly released documents.
The St. Louis-based grocer in December announced it will partner with homebuilder McBride Homes on a redevelopment of the mall site that includes a 70,000-square-foot grocery and additional retail and restaurant space on the western side of the property, plus 81 single-family homes developed by McBride on the eastern side.
In documents submitted to the city of Crestwood, Dierbergs said the commercial portion of the project will cost around $67 million and it is requesting $13.5 million in tax increment financing, which allows developers to use the rise in tax revenues from property value growth to finance projects. Another $3.5 million would come from a community improvement district that would levy a 1% sales tax on the site.
While the overall project is a co-development between the two companies, each portion of the project is being developed separately, with Dierbergs leading the commercial side and McBride developing the residential subdivision. The documents submitted to Crestwood do not detail the costs of residential portion of the project, and a spokeswoman for McBride said the homebuilder does not intend to request any tax incentives for its part of the work.
Crestwood's TIF commission will first hear the Dierbergs proposal on Thursday, with another public hearing on the request set for June 17.
In a letter to the city, First Bank indicated it would lend money to the project, but said that "would not be feasible without the assistance of TIF and a CID."
The Dierbergs-McBride effort is the latest redevelopment plan to emerge for the former Crestwood Mall site. Most recently, St. Louis-based Walpert Properties had plans to develop "Crestwood City Center," which was to include retail, office and residential components. However, that project fell through last year, with officials saying economic conditions caused by the Covid-19 pandemic were behind their decision to walk away from the development.
Click here for the full story.
Editor's note: An earlier version of this story incorrectly stated that McBride Homes was part of the request for $17 million in tax incentives to redevelop the former Crestwood Mall site. The story also said the overall project would cost $67 million. The cost and tax incentives, however, were only for the commercial part of the project that will be developed by Dierbergs. McBride Homes says it does not intend to request subsidies for its residential portion of the project.