ST. CHARLES — An environmental group is suing St. Charles over tax breaks for a
flood plain development.

The Great Rivers Environmental Law Center says a 99-acre commercial development
on the southeast corner of Highway 370 and Truman Boulevard did not meet the
statutory definition of "blighted," a requirement for using tax abatement to
improve the site. On Monday, Great Rivers mailed a lawsuit on behalf of the
Great Rivers Habitat Alliance to the circuit court in Cole County.

Dan Burkemper, executive director of the Habitat Alliance, said the group,
which also has sued St. Peters over a similar issue, wanted to be consistent in
opposing government subsidies for flood plain development.

"Subsidizing flood plain development through tax incentives is corporate
welfare that ends up costing taxpayers far more than they likely realize," he
said.

The lawsuit says that problems such as flooding, lack of infrastructure,
habitat for mosquitoes and erosion issues were typical of land located within
the 100-year flood plain. They should not have been used to declare the
property blighted, according to the suit.

Michael Valenti, St. Charles' attorney, declined to comment Tuesday because he
had not seen the suit. John R. Hamill, an attorney for Truman Business Center
LLC, the property's developer, also declined to comment.

The Adolphus A. Busch Revocable Living Trust also is a plaintiff. State
Attorney General Chris Koster is named as a defendant because the suit
challenges the validity of state statutes.

Truman Business Center is headed by Tom Glosier and Jim Zavradinos. The company
asked city officials to approve reduced property taxes to help pay for a
warehouse and office park complex. The $41 million project is one of a series
of warehouse and light industrial complexes along Highway 370 on St. Charles'
northern edge.

The council voted in June to approve property tax breaks to help pay for the
complex. Burkemper said it took longer than expected to put together the
lawsuit.

The developer is to receive 50 percent property tax abatement for 10 years and
authority for an extra sales tax of up to 1 cent through a community
improvement district.

The development's plan includes filling the site with up to 15 feet of soil to
raise it above the 100-year Mississippi River flood plain. It also calls for
raising part of Truman Boulevard.

Public improvements, including drainage, sewer, road and utility work, are
expected to take two years and cost $4.5 million.

The alliance is still fighting in court with the St. Peters over the use of
tax-increment financing for the Premier 370 Business Park development.
Tax-increment financing allows future income from a development to pay for
current costs, such as roads, sewers and other infrastructure.

A judge in Cole County sided with the St. Peters, but the state Court of
Appeals in Kansas City reversed the decision in March 2008 and ordered a trial.
The St. Peters case tentatively is set for trial in August.

Juana Summers of the Post-Dispatch contributed to this report.