Tax incentive, new infrastructure part of proposed ‘transformative’ development in O’Fallon
Planning details are emerging for a “transformative” economic development proposal in O’Fallon.
They include establishing a business district around the 320-acre Park Place site that would allow developers to collect up to an additional 1% sales tax to pad their costs.
Park Place is a joint effort by Bruce Holland of Holland Construction, Rich Gorazd of State Construction and Michael Hamburg of Pier Property Group that city leaders have said could be the biggest development of its type.
As proposed, it would feature recreation, entertainment, retail, restaurants and a variety of housing options that could include 50 villas and 429 multi-family units. The cost is estimated cost of the project is $275 to 300 million.
At the March 3 meeting, the O’Fallon City Council approved setting a public hearing for March 17 at 7 p.m. on forming an O’Fallon Family Sports Park Business District for 320 acres, located west of Venita Drive and Porter Road intersection.
This does not approve formation of the district; it only sets the mandated hearing.
The location is east of downtown and along the West Highway 50 corridor intersection with West State Street. This area includes several recreational fields, one vacant building, some parcels currently used for agriculture and some vacant land.
It will include Park Place and the Old Base Factory and allow developers to collect up to an additional 1% sales tax, which is an additional tax on retail goods above and beyond what is currently collected in the city.
City staff has determined that this district would be an appropriate vehicle to be used to attract funding for a portion of the costs associated with building rehab, new construction and providing the supporting infrastructure needed for development.
Property Redevelopment
Hamburg has applied for a planned use permit for the proposed redevelopment, which is 105.18 acres of land.
That project is set for a public hearing at the Planning Commission on March 11 at 6 p.m.
Its purpose is to induce land development, encourage and promote rehabilitating existing infrastructures and construct new structures in this area, according to Hamburg.
The project will require many improvements to existing infrastructure, including an estimated $4 million in roadway improvements at the intersection of Illinois 50 and Venita Drive and a $1 million intersection with traffic signals at the entrance to Family Sports Park.
Other infrastructure investments include the relocation of Ameren transmission lines, installation of water and sewer infrastructure, public and private roadways, and on-site water detention facilities. The overall project costs are estimated at $300 million.
The project itself will be set for a first reading vote at the April 7 council meeting to approve the planned use zoning, creation of the 1% Special Business District, and the redevelopment agreement for the business district. It would be up for final approval at the April 21 council meeting.
Land Purchases
The council recently passed two resolutions involving land purchases for Park Place.
City-owned property measuring 24.99 acres is going to be placed under contract to sell to Pier Property Group for $1 million so it can begin site engineering design for the Top Golf-like golf complex planned along Venita Drive.
O’Fallon Mayor Herb Roach explained that the sale is not yet final, because zoning approvals and requirements must be met first.
The property was originally purchased by the city for construction of the Venita overpass, Fire House 4, and parks maintenance facility.
Also contingent on zoning approvals, the city plans to purchase 6.25 acres of privately-owned property for $250,000 that had originally been bought by Rich Gorazd of State Construction Company for use in the Park Place development.
The city preferred retaining the ground as parkland near the Family Sports Park, to provide additional buffers for residents.
Besides the meetings cited, here is the tentative schedule:
▪ March 24: Community Development Committee review.
▪ April 7: City Council first reading consideration.
▪ April 14: Community Development Committee review.
▪ April 21: City Council second reading consideration.
Project Details
No tenants have been confirmed, but the developers have said they plan to recruit businesses that will complement the Family Sports Park and adjacent residential areas.
The developers suggested entertainment-based retail buildings could be like Edison’s Entertainment, Upper Limits, and Main Event.
Options for office spaces and sit-down/fast casual restaurants will be considered, but developers say they are not seeking fast-food, gas stations or other businesses.
City planners say that they have told developers that protection of neighboring residential properties and the Sports Park is a top priority, and they will not allow any user that could have a negative impact on the area, public safety, or traffic.
After two public open houses, with plans laid out on boards for residents to view, the formal zoning reviews are underway. Input from the residents on the project design is still welcome, Roach said.
If approved, the plan is expected to be built in phases, with the new single-family residential areas and golf entertainment first. Because the development will require significant public infrastructure, that could take a couple of years before completion.
City staff have been working with this group since 2023 to shape the project for significant economic impact, said the new Community Development Director Greg Anderson. They have worked on mitigating traffic, noise, crime, and other concerns for nearby residents, as detailed below.
The O’Fallon Family Sports Park is a 200-acre sports and recreation complex at 301 Obernuefemann Road that features eight lighted all-weather synthetic turf soccer fields – one a championship soccer arena — and two premium grass soccer fields, 10 turf infield/grass outfield baseball/softball fields.
It has a Splash Pad, pavilions, concessions and a 2.1-mile walking trail. A playground was added in 2022. A new parking lot on the northeast corner was finished in the fall and open for use. The construction and expansion of the park was funded with large contributions of a 9% hotel/motel tax increase that is paid by out-of-town visitors instead of local taxpayers, part of an economic incentive called Destination: O’Fallon that went into effect in 2016.
According to the city’s parks and recreation department, sports tournaments have become a reliable source of revenue for O’Fallon, and last year’s estimated economic impact was over $9.6 million in gross revenue from baseball, softball and soccer teams visiting the Family Sports Park.
Comprehensive Traffic Study
The city’s traffic engineering firm CBB has recommended changes for existing roadways including additional turn lanes from Illinois 50 onto Venita Drive, a traffic signal at the Family Sports Park entrance and a roundabout at Venita Drive and Porter Road. These traffic improvements must be completed before the project can open, said O’Fallon Public Works Director Jeff Taylor.
The study showed that even in current conditions, if the Park Place development didn’t go through, current usage and future projected growth of the area in north O’Fallon would put strains on the existing roadway infrastructure.
With the Park Place project, these roadway improvements will be paid for by the developer.
In addition, requirements needed:
Lighted intersection at Venita and entrance to the O’Fallon Family Sports Park.
Extension of Porter Road to the west, allowing a long-term future connection towards Old Collinsville Road.
Rerouting of north Venita Road and the curve into Porter to become a roundabout serving the development site.
Major improvements to the intersection of Highway 50 and Venita Road, including:
Dual eastbound left-turn lanes to allow traffic to turn northbound onto Venita.
The stacking lanes will also be greatly increased in distance, allowing more cars to stack as they wait to turn north.
Timing adjustments to the signalized traffic light to provide protected left-turn movements for east-bound and west-bound approaches.
Southbound free right-turn lane to get traffic from Venita directly to Interstate 64.
Buffer Plans
The proposed project places the commercial buildings away from the Parcs at Arbor Green subdivision by buffering with a new residential development of villas to be built by State Construction.
Green space and parkland are planned between existing houses and commercial and/or apartments of the development.
The only proposed non-residential site north of the Porter Road extension will be one sit-down restaurant, buffered from the north by the new single-family villas.
The new golf entertainment complex will be in the south end. A large riparian buffer includes a creek and dense vegetation and trees, over 300 feet of protected drainage areas, and significant elevation changes.
City requirements prohibit light from the golf complex, or any development on site to carry over to the neighboring residential areas. Any lighting will be required to shine directly down to the development, and not over to any other properties.
Drainage
The entire project drains west into Ogles Creek. The proposal must comply with all local and state drainage requirements and includes multiple detention ponds, green space with walking trails, and future parkland at Porter and Simmons.
The new construction cannot send increased stormwater drainage to creek and downstream areas. Multiple wet ponds will work to hold water that currently runs off the farm field and flows directly into Ogles Creek, and along with it, tons of silt and dirt, causing issues with the creek drainage.
This story was originally published March 6, 2025 at 6:00 AM.