A project developers have described as an effort to revitalize Ellisville's business community could create approximately $500,000 in annual sales tax revenue if the project is approved, Ellisville city staff reported Friday.
Last week, an Ellisville TIF commission held a public hearing as required by law regarding a possible tax-incentive the project's developers are seeking. The TIF, or tax increment financing, would allow the developers to retain half of all newly-create sales tax dollars generated at the site.
If Friday's estimate is accurate, the revenues would account for an approximate 5 percent increase in the city's total revenues; since 2009, the City of Ellisville has operated on an annual budget of about $9 million.
At that time, the possibility of a big-box retailer like Walmart was discussed as a way to prevent additional city taxes or the loss of city services. Mayor Matt Pirrello said at that time that the city also may consider requiring residents to pay for their own trash pick-up, which would decrease current city expenses by about $500,000—the same amount Ellisville city staff said the Walmart project would generate. In April 2011, Ellisville voters approved a sales tax estimated to generate about $800,000 annually.
Ellisville City Council members could vote on approving the TIF sought by developers of the Walmart site at the city's March 21 meeting.