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Tax Deal with O'Fallon Could Land New Menards Store in LSL

The current site plan shows part of the parking lot, as well as outlots, on land that Lake Saint Louis is planning to annex.

A developer with a contract on a piece of property south of Highway N has plans to build a Menards home improvement store. Most of the property is in O'Fallon, but the current site plan for the development shows a corner of the parking lot, as well as the store's outlots, in unincorporated St. Charles County.

between Highway N and Old Highway N, either by a voluntary annexation agreement with the owner, or by an involuntary annexation on the April 3 ballot.

At Monday night's public work session with the Lake Saint Louis Board of Aldermen and city staff, City Administrator Paul Markworth unveiled a proposal for the two cities to share tax revenues for the development.

O'Fallon's Mayor Bill Hennessy and City Administrator Keith Reisberg were in attendance to listen to the Lake Saint Louis board's reaction to the plan before taking it back to their own city council on Thursday night.

The plan, which was the brainchild of Lake Saint Louis Mayor Mike Potter, called for Lake Saint Louis and O'Fallon to split the tax revenues from the Menards store and the outlot businesses 20/80, with 20 percent going to Lake Saint Louis and 80 percent going to O'Fallon.

The agreement would become void at the point that revenues Lake Saint Louis receives from the outlot stores is the same as the amount they would receive from the Menards store.

The developer has asked for a large pylon sign near Hwy. N, which would be on the property Lake Saint Louis is planning to annex. Lake Saint Louis will also be maintaining Orf Road.

Markworth expressed concern that the new development could hurt businesses at the Shoppes at Hawk Ridge, especially .

As an alternative plan, Potter suggested that sales tax revenues be used to relocate some power lines that go through the outlot area. Once those lines are gone, it is possible that two or three more lots could be developed.

Potter asked the board for permission to send the plan on to O'Fallon.

Ward 3 Alderman George Rich spoke against the plan, which he said did not provide enough benefits to Lake Saint Louis.

"We're giving away too much," he said, noting the completion of the Page Extension would make the outlots "prime property."

Rich's fellow Ward 3 Alderman, John Pellerito, was more positive about the deal.

"I’ve been excited about us working with other cities," Pellerito said. "That’s what we’re supposed to be doing, working together."

With Rich and Ward 1 Alderman Ralph Sidebottom against the deal, and Pellerito and Ward 2 Alderman Karen Vennard for it, Mayor Potter used his tiebreaker vote to give the go-ahead for Hennessy and Reisberg to discuss the plan with the O'Fallon city council.

Ward 1 Alderman Larry DeGroodt and Ward 2 Alderman Kathy Schweikert were not at the meeting.

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