Kirkwood considers tax breaks for developers amid financial strain
City has not offered tax abatements to developers in at least a decade, official says
KIRKWOOD, Mo. (First Alert 4) - The city of Kirkwood is considering giving tax breaks to developers for the first time in at least a decade, as the city works to grow and address an aging population.
The potential move comes as Kirkwood faces mounting financial issues, and some residents have raised concerns about the city giving up millions of dollars in tax revenue.
Resident raises concerns
Michael Carmody, a Kirkwood resident, told First Alert 4 that the impact would fall on taxpayers over a period of years.
“The impact this is going to have on the taxpayers and the amount of years they’re going to have to make up this tax abatement, somehow, somewhere, whether it’s a lack of service, whether it’s the impact that it’s going to have in schools could be incredible, and our library is going to get hit harder than our city,” Carmody said.
No decision made yet
No decision has been made on potential tax breaks. The subject came up at a recent city council meeting as the city considers approval of a new 202-unit apartment complex on the current site of the city’s Public Works Department.
The property was rezoned for residential use last year. The developer, Double Eagle, is under contract on the property.
Jonathan Raiche, Kirkwood’s planning and development director, said tax breaks have not been given to developers during his 10 years on the job.
Asked whether the city should be considering tax abatements for these types of projects, Raiche said, “I can’t speak on behalf the city council, tax abatements are a very common tool as the presenter said last week, it’s a common economic development tool used throughout the state of Missouri and other states around the country and it comes down to the elected officials to determine whether it’s in the benefit of the whole community, basic idea of abatement is a short term offset for a longer term gain.”
City faces financial pressures
As First Alert 4 has reported in recent months, Kirkwood is in a deep money crunch.
A consultant recently said $90 million is needed to maintain the city’s aging water system.
The city’s electrical department went $15 million over budget last year, and a forensic audit is now being launched.
The city also overpaid for the property where the new Public Works building will go.
It’s not known right now when or if the Council could vote on the tax abatement.
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