A bill to approve a petition to establish a Community Improvement District for a new subdivision in O’Fallon was tabled at the City Council’s Oct. 26 meeting for a second time.
McBride & Son has petitioned the city to establish a Community Improvement District that would allow the home builder to impose an annual assessment on homeowners in its Cobblestone Crossing development located off of Hwy. P. McBride & Son said the CID is necessary to help cover “extraordinary development costs” related to the subdivision, which will span 82.5 acres and include 284 single-family homes.
CIDs are political subdivisions that are created as a financing mechanism for public improvements and can generate funding either through imposing property taxes, a sale tax or a special assessment.
The bill on McBride’s CID request was initially tabled at the city council’s Sept. 28 meeting in order to allow discussion at the next city council work session. Representatives from McBride & Son presented their case for the CID at the city council’s Oct. 12 work session and multiple city council members expressed skepticism about the proposed CID.
The proposed CID would impose annual assessments on homeowners totaling $300, $400 or $500, depending on the tier of the home purchased from McBride & Son.
McBride & Son has formed CIDs for four developments located in Eureka, Maryland Heights and Jefferson County. The company also recently proposed establishing a CID for a new subdivision in Lake Saint Louis.