2016/10/28 - Walter's Blog: Destination O'Fallon
October 28, 2016
Economic development is the lifeblood of a community. It means jobs and services for residents. It means tax revenues for government services. In the City of O’Fallon, economic development means more tax revenue from visitors through sales taxes, food/beverage taxes, and hotel taxes so the City property tax rates can stay low.
The City of O’Fallon recently launched a new economic development initiative called Destination O’Fallon. Destination O’Fallon includes a number of projects and community-wide investments that will continue to make O’Fallon a national destination for businesses, families, and visitors. Two of the largest projects will include a state-of-the-art multi-sports complex in the O’Fallon Family Sports Park and a new multi-purpose community plaza in the heart of historic O’Fallon Downtown.
With the construction of the St. Elizabeth’s Medical Campus, O’Fallon is on the cusp of a new era of growth and expansion. The hospital is scheduled to open in November 2017, so the future is happening now. The City Council anticipated this opportunity and the Strategic Plan includes economic development as a top priority for the future of O’Fallon.
In particular, the Strategic Plan describes two essential elements of economic development: business recruitment and destination development. Business recruitment includes marketing and incentives for new businesses to locate in O’Fallon along the Green Mount Corridor, Rieder Road Corridor, and Downtown area. Destination development includes capital investment in infrastructure and attractions that will bring additional visitors and businesses to O’Fallon.
A community is judged by how it takes care of its downtown. The 2015 Downtown Plan and 2016 Citizen Survey both emphasized downtown O’Fallon as the heart of the community and there is demand for more community activities and events in downtown.
A new concept plan envisions a Downtown Plaza at the underutilized area on First Street known as the “Santa Hut Lot.” The plan includes features such as a multi-seasonal pavilion, park plaza, water feature, and a landscaped area that can be used for both parking and event space. The estimated cost of the Downtown Plaza is $850,000-$1,500,000, which will be refined after input from the City Council and O’Fallon residents.
The second piece of Destination O’Fallon is the expansion of the Family Sports Park. An economic impact study recently revealed that visitors spend $1.6 million each year for tournaments and park events, and parks generate $5.1 million in economic impact to the O’Fallon economy per year. A feasibility study further confirmed that the construction of all-weather fields will significantly increase O’Fallon’s ability to attract large national and regional tournaments. These tournaments could double the number of visitors to O’Fallon and be an economic engine for local businesses. The estimated cost of the Family Sports Park expansion is $7.5 million-$8.4 million, depending on how many all-weather fields are built.
The proposal includes a 4% increase in the Hotel/Motel Tax to fund the cost of construction. Currently, O’Fallon has the lowest Hotel/Motel Tax in the region at just 5%. An increase in O’Fallon’s Hotel/Motel Tax is being used so that out of town visitors, not O’Fallon residents, will pay for the community investments. O’Fallon families and homeowners will experience the benefits of additional amenities and increased home values without having to pay for it through increased sales or property taxes.
The construction will be funded through a $9.5 million bond issue. The City can afford the payments on this bond without any additional room nights or hotel rooms. O’Fallon has a AA+ bond rating which was awarded by Standard & Poor’s because of the City’s “strong management, strong budgetary performance, very strong budget flexibility, and very strong liquidity.”
If the City Council chooses to increase the Hotel/Motel Tax, then planning and design will begin on the projects with feedback from the community and City Council. It is anticipated that the projects will be ready when St. Elizabeth’s Hospital opens in the fall of 2017. Destination O’Fallon will make the O’Fallon community a national destination for families, businesses, and visitors. An increase in the number of visitors and businesses will provide a boost to the O’Fallon economy. O’Fallon will become an even more desirable community in which to live, which in turn will help to increase O’Fallon homeowners’ property values.
For more information, the slides from Destination O’Fallon presentation are posted on the Internet along with some Frequently Asked Questions. Articles are in this week’s issues of the O’Fallon Weekly and O’Fallon Progress. The O’Fallon Weekly even posted video on their “Facebook Live” site.