Crestwood Mall Development Sparks Financial Worries

CRESTWOOD, Mo. (KMOX) – Anyone driving in the area of Watson and Sappington roads can see the ongoing demolition of the former Crestwood Mall.

City administrator Kris Simpson says they’re “moving along nicely” since demolition started this past spring. Work on the 47-acre replacement for the nearly 60-year-old mall is expected to last through 2019.

However, Simpson is sounding the alarm about Crestwood’s finances. He says while the new development’s expected to generate up to $600,000 in annual revenue right away, it won’t be enough to offset the projected deficit.

“They estimated the early financial impact to be on the order of $500,000 to $600,000 a year. That’s a chunk out of a $7.1 million deficit, but that’s not a meaningful difference,” Simpson says.

Earlier this year, UrbanStreet was granted $25 million in tax support for up to 23 years, with private investment in the project coming to about $80 million. Yet, Simpson is tamping down expectations that tax revenue generated by UrbanStreet’s development will alleviate the multi-million dollar deficit he’s projecting over the next five years.

(TM and Copyright 2016 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

Follow us on Twitter | Like us on Facebook

Comments

Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS St. Louis

Live Inspired
KMOX Podcasts

Listen Live