Council takes no action

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PRINCETON — The Princeton City Council took no action Monday night on any tax assistance for the developers of a proposed Princeton Shopping Center.

At Monday’s meeting in city hall, the council heard from Bob Ricca, of Central Realty based in St. Louis, who serves as managing agent for the old Wal-Mart store on North Main Street. The redevelopment project also includes the former Sullivan’s grocery store, which is now Lay’s Furniture, and the North Main/Backbone Road corner office, which will be razed for a new pharmacy.

The developers are asking the city to create a business tax district to increase sales tax by 1 percent for persons shopping in the new businesses at the proposed Princeton Shopping Center. The developers are also asking the city to rebate 50 percent of the city’s 1 percent share of sales tax to the developers of those new businesses. The tax district would be good for 23 years; the sales tax assistance would be good for 15 years.

At Monday’s meeting, Commissioner Bob Warren questioned Ricca on the expected costs of the proposed development versus expected revenue, including lease and tax revenue.

Ricca said expenses are expected to be about $3.5 million. Revenue, through the tax assistance period, is estimated at $6 million.

Princeton resident and longtime businessman Duane Quiram also addressed the council, saying he opposed the tax assistance for the redevelopment project.

“I think if a someone wants to come into Princeton to do business, whether it’s a developer or a retailer, they should spend their own money,” Quiram said. “As far as I’m concerned, I think less government is good government.”

Quiram also questioned how an area could be defined as “blighted”, as required for a tax district designation, if there is only one empty building. The area is not blighted, he said.

City attorney John Isaacson said the term blighted is used in a fairly liberal designation.

Quiram also questioned whether the city needed another pharmacy, since it already has four.

Finishing his remarks, Quiram said he totally disagrees with the city giving any business any money. The city has the revolving loan which can be repaid by businesses, he said.

Ricca said the Princeton Shopping Center project, as a whole, can not go forward without the tax assistance from the city.

After Monday’s meeting, City Manager Jeff Fiegenschuh said he supports the tax assistance for the redevelopers. In today’s economy, developers often need to work with government officials to get incentives for locating in a community.

“I think government should be proactive in attracting businesses to a community,” Fiegenschuh said.

The issue of the redevelopment of the old Wal-Mart area is not dead. The city council will address it again at some point, Fiegenschuh said.

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