ST. ANN • The redeveloper of the nearly vacant Northwest Plaza shopping center has won support from a St. Louis County tax increment financing commission for public help funding the project.
The commission voted 9-2 on Wednesday night to recommend that the St. Ann Board of Aldermen approve the $106 million redevelopment plan by Raven Development/NWP LLC. The plan includes about $33 million in TIF financing.
Northwest Plaza, deveoped in the '60s, was once the largest shopping center in the world, but it has languished in recent years.
St. Louis-baed Raven has proposed tearing down much of the center, renovating the 12-story office tower and building big box stores, offices, restaurants and potentially a technical college and an assisted living facility.
The plan will go to the aldermen July 2. Mayor Michael G. Corcoran said he expects strong support there.
"The project will be a huge success and we're excited," Corcoran said. "Clearly, this development would not happen without a TIF. There are good and bad TIFs, and this is a perfect example of the proper use of TIF."
The commission's vote followed a public hearing during which four people spoke, all in favor. That's in contrast to other recent TIF projects in St. Louis County, where sharp opposition has been voiced by the public as well as TIF commissioners. (County TIF commissions are made up of six county government appointees, and six from other affected taxing jurisdictions.)
In some cases elsewhere in the county, TIF commissions have ruled against projects, only to have local city councils or aldermanic boards pass them anyway.
Mike Jones, senior policy adviser to County Executive Charlie A. Dooley, was one of the county appointees to the panel to vote for the project.
"TIFs as an economic tool have been misused and misapplied for real estate transactions in overbuilt retail markets, moving sales from one part of the county to the other," Jones said. "That's been our major objection. The conditions at Northwest Plaza are exactly what TIF and other economic development tools were designed for."
Even with the help, he added, developing Northwest Plaza "is going to be a bear. It's a major development challenge."
Maggie Hart-Mahon, deputy St. Louis County counselor, voted against the TIF. She said she did not oppose the idea but had concerns about the numbers.
"Although I completely understand that Northwest Plaza is an area that very much needs redevelopment, and it's been languishing for a long period of time, I don't think this particular project is financially feasible," Hart-Mahon said. "I hope I'm wrong."
The county's director of administration, Pam Reitz, also voted no.
Under the TIF plan, 100 percent of additional property tax revenue and 50 percent of additional sales tax revenue would be used for the development for up to 23 years.
Costco buys out partner's stake in Mexican division - Seattle Times
Costco Wholesale is buying the 50 percent stake held by Controladora Comercial Mexicana in its Mexican division for about $760.4 million, the companies announced Thursday.
Costco and Controladora have each had a 50 percent interest in Costco de Mexico, which Costco Wholesale ran.
At the same time, Costco Mexico declared a dividend of approximately $340.9 million, which will be split evenly between a Costco Wholesale subsidiary and Controladora.
Costco Wholesale said it will use its share of the dividend along with cash on hand and investment balances to pay for the acquisition.
The buyout will consolidate control under the management of Issaquah-based Costco Wholesale and give Mexico City-based Controladora cash to pay down debt.
The joint venture has grown little in recent years, so Costco Wholesale will probably put more money into its Mexican operations, said Carlos Hernandez, an analyst with Planet Retail in Madrid.
"Costco hasn't grown that much in Mexico," Hernandez said.
"Controladora didn't have money to expand its own stores let alone the joint-venture stores with Costco. Now, Costco can expand into other cities."
Costco Wholesale has 32 stores in Mexico, the same number it had in 2009, Hernandez said.
Janney Capital Markets analyst David Strasser said he expects the deal will add 10 to 12 cents per share to Costco Wholesale's earnings over the next twelve months, and he raised his estimates based on the announcement.
Stifel Nicolaus analyst David Schick was bullish on the long-term prospects for business in Mexico
Costco Mexico CEO Jaime Gonzalez Solana will remain in the post and Controladora Chairman Guillermo Gonzalez Nova and CEO Carlos Gonzalez Zabalegui will continue as board members.
The deal still needs the approval of Controladora shareholders and the Mexican Federal Competition Commission.
Costco Wholesale runs 602 warehouses, including 435 in the United States and Puerto Rico, 82 in Canada, 22 in the United Kingdom, 13 in Japan, eight in Taiwan, seven in South Korea and three in Australia.
Its stock closed Thursday at $89.83, up $2.40, or 2.7 percent. It has had a 52-week trading range of $70.22 to $92.10 per share.
Information from The Associated Press and Bloomberg News is included in this report.
Costco Wholesale Corporation and Controladora Comercial Mexicana Agree to Transaction Concerning Costco de Mexico - msnbc.com
ISSAQUAH, WA and MEXICO CITY — Costco Wholesale Corporation (NASDAQ: COST) ("Costco Wholesale") and Controladora Comercial Mexicana, S.A.B. de C.V. ("CCM") are pleased to announce that they have executed a definitive agreement under which wholly-owned subsidiaries of Costco Wholesale will purchase from CCM its 50% share interest in Costco de México, S.A. de C.V. ("Costco México"), a joint venture, for $10,650 million MXN (the equivalent amount in U.S. dollars is $760.4 million based on an exchange rate of 14.006 pesos to the dollar). In addition, Costco Mexico has declared a cash dividend of approximately $4,774 million MXN (the equivalent amount in U.S. dollars is $340.85 million based on an exchange rate of 14.006 pesos to the dollar), 50% payable to a subsidiary of Costco Wholesale and 50% to CCM. Costco Wholesale will use the dividend proceeds and existing cash and investment balances to fund the purchase. CCM will use the dividend and sale proceeds to pay down debt.
The Costco México joint venture has been 50% owned by each of Costco Wholesale and CCM and operated by Costco Wholesale. The closing is subject to the approvals of the Mexican Federal Competition Commission and the shareholders of CCM. Mr. Guillermo González Nova, and Mr. Carlos González Zabalegui, respectively Chairman and CEO of CCM, will continue as members of the Board of Directors of Costco México. Mr. Jaime Gonzalez Solana will continue as CEO of Costco México.
Costco Wholesale currently operates 602 warehouses, including 435 in the United States and Puerto Rico, 82 in Canada, 32 in Mexico, 22 in the United Kingdom, 13 in Japan, eight in Taiwan, seven in Korea and three in Australia. The Company also operates Costco Online, an electronic commerce web site, at www.costco.com and at www.costco.ca in Canada. The Company plans to open up to an additional six new warehouses prior to the end of its fiscal year on September 2, 2012.
A brief conference call to discuss the transaction is scheduled for 8:00 a.m. (PT) on June 14, 2012, and is available at 800-399-8203 or via a webcast on www.costco.com (click on Investor Relations and "Play Webcast").
Certain statements contained in this document constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. For these purposes, forward-looking statements are statements that address activities, events, conditions or developments that the Company expects or anticipates may occur in the future. Such forward-looking statements involve risks and uncertainties that may cause actual events, results or performance to differ materially from those indicated by such statements. These risks and uncertainties include, but are not limited to, domestic and international economic conditions, including exchange rates, the effects of competition and regulation, uncertainties in the financial markets, consumer and small business spending patterns and debt levels, conditions affecting the acquisition, development, ownership or use of real estate, actions of vendors, rising costs associated with employees (including health care costs), energy, and certain commodities, geopolitical conditions and other risks identified from time to time in the Company's public statements and reports filed with the Securities and Exchange Commission.
© Marketwire 2012
Mariners make wholesale roster changes - YAHOO!
Seattle Mariners Should Become Sellers Before …
After losing four straight games to the Los Angeles Angels at home, it appears as Full Story »Seattle Mariners Should Become Sellers Before All-Star Break: A Fan's Take
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