Saying it would put them at a competitive disadvantage, a group of local businessmen and property owners are objecting to the creation of a Transportation Development District (TDD) in Warrenton.The …
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Saying it would put them at a competitive disadvantage, a group of local businessmen and property owners are objecting to the creation of a Transportation Development District (TDD) in Warrenton.The group outlined its opposition in legal documents filed last week in Warren County Circuit Court.They were filed in response to a petition filed by the city of Warrenton in February to create a TDD to secure funding for a second Interstate 70 overpass near the western city limits.A hearing was held last Friday in Warren County Circuit Court in the matter and another is scheduled for Aug. 23.At that time, Franklin County Associate Circuit Court Judge Stanley Williams will hear arguments for and against the TDD and could rule on whether to create the district.Judge Williams was assigned to the case after a change of judge was requested by the city of Warrenton.If the judge rules in favor of creating the district, it would still require voter approval of the 14 residents within the district, according to lawyers familiar with the case.As proposed, the district would extend from near mile marker 191 along Interstate 70 approximately 2.1 miles west of the current exchange. The district would include the Wal-Mart SuperCenter and several other businesses located within the immediate vicinity of the current interchange between Interstate 70 and Highway 47.In July, the city prepared a petition asking voters in the proposed TDD, to approve the formation of the “City of Warrenton Interchange Transportation Development District” and a 1 percent sales tax, which would be imposed on purchases within the proposed district.The sales tax would include all taxable sales within the district, but excludes the sale or use of motor vehicles, trailers, boats, outboard motors, or revenues from utilities, such as gas, water, or electric.It also excludes telephone service revenues.A formal answer in opposition to the TDD was filed by three business entities, Fastlane Group, Inc. doing business as Holiday Inn Express, Fastlane Group Inc. d/b/a Fastlane North and the Fastlane Central Partners, LLC d/b/a Fastlane Central.According to court documents, the businesses are opposed to the creation of the proposed TDD because the TDD project could result in and benefit commercial development outside the district which would be in direct competition to the businesses already in the district.John Hamill III, the lawyer representing the three business entities, said that the proposed TTD is unusual in his view in that a lot of the potential benefit will go to businesses outside of the district or to businesses that do not exist yet.“It creates a fertile ground for competition for existing businesses who have to assess a 1 percent sales tax. The other thing the TDD would do is create another political subdivision that would have the power of eminent domain. That is a concern for us,” Hamill told The Record.Another group of business and property owners filed documents opposing the TTD with the court on July 26. Those property owners allege in the court documents that under the city’s proposal, 14 voters have the ability to impose a one percent tax on both the business community and the local consumer which they feel is unfair.Calling it taxation without representation, they argue that the registered voters of the city haven’t been allowed to vote on the proposal. They also argue that the TDD would create a noncompetitive local business environment because not all local businesses would be required to collect the tax.The TTD creates, by city regulation, winners and losers, according to the opposition group.The group calls the city’s plan for a new interchange an “overpass to nowhere” and alleges there is no plan in place to extend the overpass to connect the north side and south side of the city limits.The documents were filed pro se and were signed by George Eble, CEO of Petro-Mart/Western Oil, Inc.; Brett Stewart, owner of Subway; Jo Pilla, owner of Pilla Real Estate Co.; Wayne Baker, president of Fastlane Central, Fastlane North, and in his capacity as president of Holiday Inn; Larry Kroninger, owner of Burger King; and James Hunt, owner of The Hideout Bar.Warrenton Mayor Jerry Dyer previously told The Record that the total cost of the new interchange would be approximately $15 million, with half of the funding coming from MoDOT, pending availability of funds and contingent upon the city getting its half — $7.5 million — secured.If it wins voter approval, the TDD would allow the city to sell municipal bonds to finance its half of the needed funds and use the sales tax revenues to pay back the bonds each year, Dyer said.From an emergency standpoint, Dyer said if an incident would occur on the north side of Interstate 70 and it couldn’t be accessed by Highway 47, first responders would have to gain access either by going to the Pendleton or Wright City exits.He said the interchange also would benefit the city economically and could breathe new life into the failing outlet mall on the south outer road.“It could be new lifeblood for developers there,” he said.Dyer said the city also hopes that a new interchange would spur business growth along the nearby corridor.