Festus leaders are already spitballing how to spend a hefty new revenue stream after consultants told them a proposed 240-acre data center campus could produce more than $10.5 million a year in fresh tax dollars. That kind of money has helped speed along rezoning, annexation and a vote to bring in outside negotiators, all in just a few months. While officials and school and county leaders start drafting their wish lists, neighbors are quickly organizing to try to stop the project.
As reported by the St. Louis Post-Dispatch, consultant Steve Etcher laid out estimates showing the campus would generate "more than $10.5 million" in new annual tax revenue that officials say could support schools, law enforcement and city services. Etcher and city staff shared the projections at a recent work session with the Festus R-6 School District, Jefferson College and other taxing jurisdictions as the city kicks off negotiations.
Officials' Estimates Versus Developer Promises
The developer, CRG, the data center arm of St. Louis builder Clayco, is talking up a much bigger haul. Company representatives have said the campus could eventually bring in $30 million to $40 million a year and support more than 1,000 construction jobs plus several hundred permanent roles. St. Louis Public Radio and other local outlets have reported that CRG is pitching the project as a multibillion-dollar investment that could remake the city’s tax base if it is fully built out.
City Hires Negotiators
To turn those rosy projections into binding obligations, the council voted to hire MarksNelson Advisors to negotiate a development agreement with CRG. The city signed on for an initial $20,000 engagement and $400 an hour for additional work, according to local reporting. Leader Publications reports that Steve Etcher of MarksNelson is expected to meet with city, school and county officials to start hammering out a community benefit agreement and other protections.
Residents Demand A Say
Opponents are not waiting on the fine print. Organizers say they have gathered more than 1,400 signatures door to door asking the council to place a ban or referendum before voters, and crowds have filled council meetings to complain about potential noise, lighting and strain on utilities. KMOV-First Alert 4 reported that city officials say state law restricts what kind of referendum the city can legally put on the ballot.
Legal Challenge Underway
The dispute has already landed in court. Local reporting says at least two lawsuits have been filed targeting ordinances tied to rezoning and annexation for the site. Leader Publications notes that a Feb. 6 filing by Morgan Ruzicka seeks a declaratory judgment that would overturn recent city ordinances. The cases are pending in Jefferson County Circuit Court.
Where The Money Might Go
City staff and developer materials do not quite match up on what a payout would look like. Officials told the St. Louis Post-Dispatch that new tax revenue would bolster local schools, public safety and city services, while CRG’s projections highlight a broader windfall spread among multiple taxing districts. The real take-home amount for local operating budgets will hinge on the final development agreement and any abatements or tax incentive deals that are cut.
What’s Next
For now, the next moves involve negotiations and a string of public work sessions and hearings. Industry coverage says no operator has been publicly identified yet for the data center build, and any agreement will require public informational meetings before construction starts. DataCenterDynamics reports that the project remains in early planning, and local outlets say the council has set work sessions to gather priorities from schools, first responders and county officials. My Mo Info says a work session with Steve Etcher was scheduled for March 2 to discuss a community benefit agreement.
Festus now finds itself weighing a potential multibillion-dollar buildout and a hefty stream of new tax revenue against long-term questions about land use, infrastructure and neighborhood impacts. It will likely be the council, and possibly the courts, that decide whether that money ever shows up and who gets first claim on it if it does.
