Walmart TIF Project Could Be On Chopping Block Next Week

A vote to rescind a redevelopment agreement outlining a controversial project to build a Walmart on Manchester Road near Kiefer Creek Road could be taken by Ellisville's City Council next week.

Council members heard from an attorney Tuesday representing plaintiffs who are suing over how the city issued a conditional use permit for the project. That lawsuit is in the state Court of Appeals. Jane Dueker told council members Tuesday night that the Sansone Group, the developer for the proposed Walmart project, was in breach of the firm's redevelopment agreement with the city because it had not produced evidence that it had legal title for all the necessary property by June 1 and had not filed a request with city council asking for an extension.

Ellisville City Manager Kevin Bookout told Patch Wednesday night that shortly after the lawsuit was filed in November, the Sansone Group notified the city of a claim of  force majeure, claiming that the lawsuit was a force beyond control that would push back deadlines contained within the agreement until the suit was resolved. 

The city council's vote last fall to issue the conditional use permit for the project expires in September.

Last month, an attorney for Sansone suggested council members could face legal liability under the redevelopment agreement if it did not vote to approve issuing Tax Increment Financing (TIF) bonds for the project. Council last month voted to obtain special counsel on the matter, but tabled the issue Tuesday.

Sansone representatives have not returned messages seeking comment after Tuesday's council meeting.

Dueker called on council members to vote to rescind the redevelopment agreement and believes the city would be violating it if it went ahead and voted to issue bonds. "You are not required to pass that ordinance before these conditions are met, so the idea that you have to do this in June, we fundamentally disagree with," she said.

Tuesday night, Mayor Adam Paul, a strident opponent of TIF proposals, who said after his reinstatement to the office on Monday that he would fight the Walmart project "until the doors open", said he would attempt to rescind the redevelopment agreement by a council vote next week. While he praised Sansone and claimed to have nothing against the company, he suggested that a lawsuit over failing to issue TIF bond notes could have consequences for other company projects requiring city approval.

"Sansone owns a lot of property up and down Manchester in our city. If you’re going to come sue us, it could pose serious problems," he said, "getting various permits down the road."

Ward 1 Councilman and Mayor Pro Tem Matt Pirrello, said the council had reviewed two resumes for special counsel on the TIF and that Paul wanted a third to be considered as well. While the two have clashed throughout the impeachment process, there seemed to a be a measure of agreement about the potential for a next step regarding the redevelopment agreement.

"If they have in fact missed deadlines and they have voided their contract, I would think we’re obligated to nullify their redevelopment agreement, Pirrello said. "If that’s not the case, then there’s just a misinterpretation then obviously we need to know that."

Looming over the issue, however, could be Mayor Paul's status in office. The city has asked a judge to reconsider a decision this week which puts a temporary stay on Paul's removal from office. While Paul's attorney contends that he retains full legal voting authority, Pirrello said part of the purpose of a hearing Friday was to determine how the stay impacts votes taken during the stay.