A divided Tax Increment Financing (TIF) Commission Wednesday approved a plan to amend the Hadley Township Redevelopment plan and approved a TIF redevelopment plan for Hadley Township South, moving a Menards store development one step closer to finalization.
Both measures were approved 6-5, moving the issue to the Richmond Heights City Council. The TIF Commission's recommendation will be taken up by the council no sooner than June 3.
The proposed development is in the southern section of the Hadley redevelopment area–the area south of Elinor Avenue and north of W. Bruno Avenue.
It would be just north of Walmart, in the Maplewood Commons, and southeast of Home Depot, in Brentwood.
Susan Meyers, Michael Pratl, Michele Kopolow, Betty Humphrey, Nelson Mitten and Ralph Posley voted to approve the measures. The nay votes came from Michael Jones, Margaret Hart-Mahon, Glenn Powers, William Ray and Pam Reitz.
The commission approved two measures. The first was a 2013 amendment to the original 2006 Hadley Township Redevelopment Plan.
The amendment was needed, City Manager Amy Hamilton told the Commission, in order to restructure the area, stopping the TIF clock for the area under consideration for Menards. The other areas of the area covered by the original TIF are still under the original time line.
"We could not make the project support the request of the $15 million on the 2006 time line," Hamilton said.
The amendment applies only to the property that would contain the Menards. Hamilton said a retail strip area and fast food out lot would be under the original time line.
The change would allow the TIF for Menards to run 23 years from 2013, instead of 23 years from 2006.
Hamilton and Menards Representative Scott Nuttelman both noted that the proposed TIF is a pay as you go model. Menards will front the money for site repairs, infrastructure and buildout of their store.
"It's the risk we are taking," Nuttelman said. "If the taxing isn't there, we don't make our investment back."
Nuttelman said the particulars of the site, including the topography and need for improved infrastructure, required the use of TIF funds.
"We have a track record of successful stores—Menards has never closed a store in history of the company," he said. "But even for us, if this came to us without this TIF, we'd say no. We would never have a profitable store. It would kill the idea in its infancy without TIF funding."
He added that Menards has two stores in the St. Louis region in St. Peters, MO and O'Fallon, IL. He said no TIF funding was used in the building of the St. Peters store and the funding existed through a previous TIF area in O'Fallon for some infrastructure improvements.
Menards is a family-owned company with 275 stores in 13 states.
See our previous coverage:
- Richmond Heights Menards a Step Closer: Council Moves to Condemn Properties
- Law Offices May Remain Within Menards Development Area
- Hurdle Cleared for New Menards in Hadley Township
- Resolution to Extend Menards Project to be Considered at Richmond Heights Meeting