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Ground Breaking held for 260-acre project in O'Fallon, Mo.
By Nancy Cambria
ST. LOUIS POST-DISPATCH
03/29/2007
O'FALLON, MO. — As the promises went up, the trees came tumbling down in a ceremony Wednesday to mark the
development of a 260-acre tract of pine trees and fields at highways 40 and DD.
THF Realty and Cullinan Properties announced preliminary plans for The Village of O'Fallon, an outdoor, 50- to 100-
acre shopping, dining and residential area to be built in conjunction with a 400-home subdivision.
Cullinan President Jeff Giebelhausen said the Village development was part of the growing commercial trend away from
malls toward "lifestyle" projects. Such projects use pedestrian-style streetscapes to house shops, restaurants and
entertainment. In the case of O'Fallon, the complex would probably include second-story office and residential units.
THF, the owner of the 260 acres, will serve as the master developer, said President Michael Staenberg. Cullinan, based
in Peoria, Ill., will focus on the Village component. A yet-to-be-named developer will build homes by next year.
Although the event was termed a ground breaking, the companies don't expect to push any dirt until the summer; they
used a front loader to knock down a couple of trees at the ceremony. As of Wednesday they had not submitted formal
plans to the city, nor did they provide site plans or drawings for the projects. They also did not name tenants.
However, Cullinan President Jeff Giebelhausen, said the company had a successful track record with retailers such as
Jos. A Bank, J. Jill, Chicos, Ann Taylor Loft, Coldwater Creek and a variety of formal and casual dining chains. Cullinan
properties also include anchor stores such as Bob's Sporting Goods and Von Maur department store.
The project is likely to have upward of 500,000 square feet of retail space in addition to significant dining and
commercial space, making it about the size of a traditional mall. Giebelhausen said the company had decided to
announce the Village project in advance of the International Council of Shopping Centers annual convention in May. The
convention sponsors a leasing event in which national retailers and restaurateurs shop for new commercial locations.
"We move very quickly, and we want everybody to know we are committed," he said.
About 40 county and local officials attended the ceremony Wednesday. Among them were Council President Peter
Cantwell and Mayor Donna Morrow, who said the project would become a signature destination in the county and ensure
that O'Fallon continued to benefit from a healthy retail sales tax base.
Developers hope to first begin work on a boulevard with a landscaped median that will run from Highway DD at the Great
Escape movie complex northwest to meet up with a Highway 40 access road that currently dead ends. Morrow said the
road would also provide access to city-owned land to the south that will one day be developed into a park. The city
expects to ask MoDOT and others for financial support for the road, she said.
The developers said they had yet to determine if they would request any sort of special taxing district for the project.
Cantwell said the developers had been told the project would not be granted tax increment financing.
Nancy.Cambria@post-dispatch.com
Watchdog response:
Warning bells should be ringing for O'Fallon residents after reading the Post Dispatch article about the "proposed"
development at Hwy 40 and DD. The first thing that is odd is the timing of the announcement, and subsequent mock
ground breaking. Less than a week away from the municipal elections, and low and behold who trots out front to raise
the banner for this project but none other than Peter Cantwell, the developers own lap dog. Please forgive me if I find all
this suspicious, but how often do you see a major development stage such an event for something that has no plans
presented to the various city boards, no public discussions and no approvals of any sort. As a matter of fact the ground
breaking ceremony probably even violated the city grading ordinance since no plat approvals have been granted, a
necessity for developers to start work on a project.
It also seems odd that 40 or more city and county officials were on hand for this ceremony, why? I will tell you why, its
election time, that's why. They want to be able to say "I brought this to you". The interesting thing that they won't tell
you is what it will cost you. Peter Cantwell was quoted as saying that the developers have been told that the project
would not be given tax increment financing (TIF), but he did not say anything about TDD or CID which amounts to a
sales tax increase. Mark my word the developer will ask for and receive a special taxing district of some sort (TDD or
CID) and Peter will be first in line to vote for giving away your money to the developer. Mayor Morrow has already stated
as much when she is quoted saying the city plans to ask Mo DOT for financial support, this tells me a TDD is already
planned for this development.
Another interesting point is the comments by Morrow and Cantwell that this development will ensure that O'Fallon
continued to benefit from a healthy retail sales tax base. Excuse me Peter but make up your mind, just a few weeks ago
you were crying that O'Fallon was not pulling in enough sales tax revenue and how concerned you were. Now you claim
O'Fallon is all of a sudden healthy? All of this make perfect sense to me now. Peter decided to play politics, first
claiming that O'Fallon was headed down the tubes because of the "old board" and the shortfall on tax revenues, then
comes the staged ground breaking and all of a sudden O'Fallon has a healthy sales tax base all thanks to the great
Peter.
Don't get me wrong, the development sounds like it will be fabulous, and I am sure it will be successful but it is proposed
to be built at a major intersection in the largest city in the county, in one of the fastest growing areas in the country, so
why in the world would our elected officials consider giving away tax dollars in the form of a TDD or CID? Now that I think
about it there is no reason at all to considers giving anything, you don't have to entice the developer to build, they have
already had a ground breaking, you are not in competition with another city because they have announced the location
of the project, so if this developer asks for and if our elected officials give away tax dollars in the form of a TDD or CID it
will be clearly a political giveaway, a gift to the developer if you will., or business as usual for Peter Cantwell and the city
government in O'Fallon.