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2017/06/22 - Walter's Blog: Economic Development

Democracy on the Front Lines
City Administrator’s Blog
Walter Denton

When the O’Fallon City Council approved a Tax Increment Financing District to attract the new St. Elizabeth’s Hospital, their purpose was twofold: provide good, professional jobs in O’Fallon and utilize the hospital as an economic engine for economic development. So far, the project is successful on both counts.

Economic development is important for three reasons: job creation, community benefit, and tax revenue. When the hospital opens on November 4, it will employ 1,300 people. In addition, the adjacent medical office building will house private doctor offices and clinics. It is estimated that 250,000 people will visit the hospital each year. All of this activity will function as job creators at the hospitals and for surrounding businesses.

New businesses are good for O’Fallon residents because it provides new restaurants, stores, and services for them to enjoy. Although St. Elizabeth’s Hospital is not open yet, we are already seeing the effects of the medical campus as an economic engine. The Blade Office Building opened last year with Class A office space and the Tim Hortons/Reliance Bank is open and thriving. Construction is underway for a new Marriott Town Place Suites hotel and a Dewey’s Pizza restaurant. On June 13, the Planning Commission heard a proposal to build a Sugarfire Barbeque restaurant on Green Mount Road next to the Blade Building. This will be a welcome addition to O’Fallon.

Lastly, economic development is important for local tax revenue. The O’Fallon City Council has made it a priority to keep City property taxes as low as possible and to structure revenue from other sources. 44% of the City’s General Fund budget comes from sales tax, so economic development is critical to paying for the City’s public services such as Public Safety, Code Enforcement, and Parks. In addition, Hotel/Motel Tax revenues are used to pay for improvements at the Family Sports Park.

We are looking forward to the opening of St. Elizabeth’s Hospital and beginning a community partnership that will benefit everyone.