Interesting Editorial...The City of O'Fallon Gives Special District Tax Abatement...Again! Citizens Group Forms To Take A Stand

We've Been Here Before...

The above photo is the result of a like 'sweet deal' known as the Meghan Crossings TDD, funded several years ago and now sits as a partial eyesore and half-filled with tenancy on Highway K. 

The storm is brewing again.  How many citizens remember the attempted Main Street Ventures Development of the early 2000's that was soundly stomped into non-existance by residents and business owners in O'Fallon? Where would the financial stability of the  City of O'Fallon be today had the irresponsible actions of those city leaders not been stopped? Would the entire downtown City of O'Fallon area now stand in the same disaarray as the old lumber site alongside the railroad tracks - another 'sweet deal' filled with tax abatements, gone bad? (see today's 'Road to Nowhere' - that was to be a NID development, the O'Fallon Station site below).

Citizens have awakened to more of the 'special deals' that the City of O'Fallon has created to "attract new jobs to the city". Once again, city officials have voted to give another multi-million dollar 'sweet deal' to the Centene Corporation construct a new location in the City of O'Fallon. This is just not a "new location" for Centene, but the building is a actually a 19,820 Square foot "Secondary Data Back-Up Recovery Center" (Warehouse of computer equipment). The City of O' Fallon is giving Centene $15.5-Million Dollars in Real Estate and Personal Property Tax Breaks and selling Bonds in the amount of $24-Million Dollars so that the building is built. All this for the transfer of six (6) positions within Centene.

By doing this, the City has diverted tax dollars that would normally go to area schools, Fire District, Library District and other tax-supported agencies to the pay-off of Bonds that will be used to build this privately-owned facility.In an economy when money is tight for all entities, taxpayers can expect that when these wells run dry, they will be looking to the public for tax increases - or services to the public will be cut.

Please read the following editorial submitted by an O'Fallon resident who leads the growing group of O'Fallon residents that stand against this plan.

Editorial
Monday, July 19, 2010

Dear Editor:

    I am very disappointed in the majority of the O’ Fallon City Council. I am very displeased at the 7 Yes to 3 No vote at the June 24th City Council Meeting granting the Centene Corporation of Delaware $24,000,000 in Bonds and the City of O’ Fallon owning and operating a secondary back-up data recovery building for a Fortune 500 Company with $4.1-Billion Dollars in sales in 2009 and $100-million in profits. The City Council authorized $15.5 Million in Real Estate and Personal Property Tax breaks and $400,000 in Sales Tax Exemption for equipment and materials, affecting 10 other governmental agencies with out their approval nor blessing with this project. The city has also approved paying legal expenses and closing fees to construct this computer warehouse and all in return for a mere six (6) existing jobs.

I am disheartened and ashamed at my City Council. This is not economic development at all. This is pure corporate greed at its best and the abuse of the State Law.  We are getting zero return on investment and are subsidizing a profitable Fortune 500 Company that pays no Sales Tax to O’ Fallon and no Corporate Tax to Missouri.

    Given of the Council’s Actions, I  want to put the newly passed City Charter into affect by forming a Referendum Committee called “Operation No Tax Break” and am in need of several volunteers to circulate a petition, placing this on the April 5th, 2011 Municipal Ballot asking voters to overturn, repeal, null and void Ordinance #5603. I need your help! I need 750 of my fellow Registered Voters to sign a Petition and file the signatures with the City Clerk by August 23rd or sooner. The Council will then be forced to reconsider the Ordinance and its merits. If they fail to rescind the deal, the referendum will go on the ballot for all to vote on the issue.

    If you are interested in assisting and helping me in this large task, please E-Mail me at StopTax@Mail.Com or call 314-440-9000

                                A.C. Dienoff
                                O’ Fallon, Missouri