City Sets Public Hearing for Sam's Club

A public hearing for the proposed Sam's Club location in Wentzville will be held on Wednesday, April 13. The hearing will be held in conjunction with the city's board of aldermen meeting.

At the hearing, THF Realty and its agent Alan Bornstein, will present information on a request to create a Community Improvement District (CID). THF is not  seeking Tax Increment Financing (TIF) for the location.

TIFs allow the use of local property and sales taxes to assist in the funding of a redevelopment.

The developers are seeking a 1/2 cent sales tax within the CID, which would cover the Sam's Club and an unnamed out-lot store or restaurant to be build on the Sam's parking lot.

The sales tax also would cover a small portion of the existing Transportation Development District (TDD). The CID sales tax would take over the tax currently charged in that section of the city's TDD 2.

The 1/2 cent sales tax, plus another 1/2 cent tax shared with the city, would provide funds to facilitate development of the site. The sales tax collected would not exceed $7.25 million.

According to Tom Cunningham, the city's bond council, CIDs are governed by specific legislation, and the collection of the sales tax was allowed under the act.

He also said there is a specific definition for blight under the CID Act, which provides additional authority to expend funds for improvements to parcels of land within the CID.

He also noted that the changes in the sales tax in that area could benefit the citizens and shoppers in .

"The existing obligation of TDD bonds will be absorbed with the revenues from Sam's," he said. "The CID bonds have  a shorter term than TDD funds."

This will create a better result for the duration of the levy for both the city and the taxpayers, according to Cunningham. He also noted that the public hearing would include more details for both the board of aldermen and the public.

Cunningham acts as a gatekeeper for issues such as these. He works with the developer and their attorneys to prepare financial agreements. The preliminary costs incurred by the city to employ the special council are covered by developers seeking tax incentives in the city. 

"We work on your time, but their nickel," Cunningham said. 

If things go according to schedule, Bornstein said he expected the sale of the land to be complete in late summer with construction to begin immediately following the sale.

"We are looking to be open by spring or early summer — sometime in the second quarter of next year," he said.

The new Sam's would sit behind the existing and across from . Initial specs put the store at 136,000 square feet on a 26-acre lot. The store would face Bear Creek Drive. 

According to Bornstein, the entrance to the site would come from Bear Creek Drive. Deliveries would be required to enter and exit the facility through the existing service road behind Wal-Mart. 

The Sam's Club gas station would sit across the street on a vacant lot near Kohl's, Bornstein said. There also is room on the proposed Sam's lot for a restaurant or store to go in, although nothing is planned at this time.

The store will feature a canopy for carts coming out of the store, where patrons can pull their cars up to load their purchases.

Several residents of the Bear Creek area told the city council at a previous meeting about their fears for traffic congestion on their road. Bornstein said THF has no plans to widen May Road for the increased congestion but is dedicating an additional 20 feet of road right of way to the city for future expansion. 

Other residents questioned whether there was a better location in the area for the store. Bornstein said six other locations — both in and outside the city — were considered and rejected before the current location was selected.

Sam's Club began as a membership bulk purchasing store in 1983. There are now nearly 600 sites, according to the store's web site. The company is part of the Wal-Mart family of stores.

Bornstein said the store's hours of operation would follow Sam's Club guidelines, with the store being open to members from 9 a.m. to 10 p.m. Most locations open at 7 a.m. for small business members.