Editor’s note: This story first appeared on the front page of the Oct. 26 edition of The Record. That story incorrectly stated that the city of Warrenton provides funding for the redevelopment of the former Warrenton outlet mall. The Record regrets this error and apologizes for any confusion it has caused. This revised story correctly reflects that the project’s developer is fronting the cost of the project.

The city of Warrenton is suing the board that oversees the Warren County 911 dispatch center over its refusal to pay tax money into a fund for redeveloping the former Warrenton outlet mall.

In a petition filed at the Warren County Circuit Court Oct. 17, the complaint reads the Warren County Emergency Services Board has refused to pay two invoices from September and October, totaling about $400.

The origin of the dispute is a tax increment financing (TIF) district Warrenton established to reimburse redevelopment costs at the Shoppes at Warrenton mall (formerly the Warrenton Outlet Center). TIF is a system in which the developer fronts the cost for the project. The project, when complete, will generate new sales and property tax revenue. That revenue will then reimburse certain development expenses.

Several new businesses have opened at the mall since the TIF district was established, generating new sales tax revenue that is split between the city, emergency services board and several other political subdivisions. State law requires 50 percent of that new revenue to be paid into a special allocation fund to reimburse TIF costs, according to the lawsuit.

But a provision in the law also allows emergency services to be reimbursed out of that same fund they pay TIF money into. This has led to a debate about whether the board can simply keep its money, rather than paying it into the fund and then asking to get it all back.

In letters responding to invoices sent Aug. 31 and Sept. 15, Emergency Services Administrator Amy Ellard said “Missouri law authorizes the (Emergency Services) Board to be reimbursed from the special allocation fund in the amount of at least 50 percent nor more than 100 percent of the district’s tax increment. The board has chosen to retain 100 percent of the district’s tax increment. Therefore, no invoice is due.”

City officials took issue with that interpretation. Warrenton’s Board of Aldermen passed an ordinance Sept. 19 outlining the reimbursement process. It states all reimbursements from the special allocation fund must be approved by city staff, and that entities are not eligible if they don’t first pay money they owe into the fund.

According to the city’s lawsuit, the state law that governs TIF redevelopment projects makes clear that if the Emergency Services Board is eligible for reimbursement, it “must seek any reimbursement from the city’s special allocation fund and has no legal right to simply retain such funds.”

Attorneys for the city of Warrenton and the Emergency Services Board declined to provide additional comment.