Chesterfield Council to Reconsider Drury's Inclusion in Downtown Tax District Monday

Chesterfield Council to Reconsider Drury's Inclusion in Downtown Tax District Monday
The Drury Plaza Hotel at 355 Chesterfield Center East | Source Druryhotels via Wikimedia Commons

Chesterfield's City Council will decide Monday whether to reconsider the tie-breaking vote that added Drury Development's hotels and restaurants to the Downtown Chesterfield Special Business District over the company's objections.

The motion to reconsider Bill No. 3587 is the only legislative item on the May 18 agenda, according to the council meeting packet posted this week. The meeting begins at 7 p.m. at City Hall, 690 Chesterfield Parkway West.

On May 4, the council split 4-4 on the SBD boundary expansion. Mayor Dan Hurt cast the tie-breaking vote in favor, and the bill became Ordinance No. 3378. Voting yes: Councilmembers Hansen, McGuinness, Moore, and Budoor. Voting no: Councilmembers Mastorakos, Koch, Tocco, and Moll.

The expansion adds four parcels to the district: the Drury Plaza Hotel at 355 Chesterfield Center East, Hyatt Place at 333 Chesterfield Center East, Bishop's Post and the RedKey Realty building at 16123 Chesterfield Parkway West, and a former theater parcel at 595 Chesterfield Center. That takes the SBD from 100 acres and 13 parcels to 115 acres and 17 parcels.

What Drury stands to lose

The district is authorized to levy up to $0.85 per $100 of assessed value for streets, lighting, trails, security, and public parking, though it is not currently collecting any taxes. The stakes are still significant. Drury's properties make up just 4% of the expanded district's land area but account for 20% of its assessed revenue based on 2025 valuations, according to figures Drury Development's Mark Kohl presented at the April 21 public hearing. Kohl said that share could climb to 59% by 2030 if no new buildings are constructed on The Staenberg Group's parcels. TSG owns 88% of the parcels in the expanded district.

"When you put us in the district, it puts us at a competitive disadvantage," Tim Drury, president of Drury Development Corporation, told the council on May 4. "This is going to cost us millions of dollars. It's not right."

Kohl argued that 75% of properties targeted for expansion oppose inclusion, and all of those opposed are unaffiliated with the mall redevelopment. Neil Griffin, speaking for the owner of Bishop's Post, said the restaurant cannot physically access the new development due to elevation differences between the properties.

TSG's Tim Lowe, vice president of leasing and development, countered that all parcels benefiting from Downtown Chesterfield's public infrastructure should share in funding the district. Lowe said the SBD is city-controlled, not developer-controlled, with the rate set annually through a public process.

What's not on the agenda

Notably absent Monday: Bill No. 3588, the TriStar TIF road-reimbursement dispute. TriStar Real Estate Acquisitions had sought up to $750,000 from TIF funds to offset costs of a second road the city requested on its 16.82-acre residential site. That bill died for lack of a second on May 4, and no new date has been set.

If the reconsideration motion passes Monday, the ordinance expanding the SBD would be reopened, though whether that voids it outright or requires a new vote is unclear from the council packet. If the motion fails, the mayor's decision stands and the $2 billion Downtown Chesterfield redevelopment's SBD boundary is locked in with Drury included. Drury Development first opened at the Chesterfield site in 2006 and expanded with Hyatt Place in 2013, paying full property and sales taxes without receiving city incentives, according to the company's testimony.

The next regular council meeting after Monday is June 1.