By Travis Gettys
Enquirer contributor

CRESTVIEW HILLS - A disagreement between city and county officials over tax revenues could jeopardize the construction of a $90 million "lifestyle" shopping center here.

Cincinnati developer Jeffrey Anderson Real Estate told city officials Thursday that it would bypass a planned bond issuance and attempt to raise capital for the project, which would replace the nearly vacant Crestview Hills Mall with an upscale shopping center.

If it cannot be financed privately, the project could fall through. Demolition of the existing mall is scheduled to begin April 19.

The city planned to sell $90 million in industrial revenue bonds to build the new mall and hold title on it until the bonds are paid off by Anderson, which also developed the successful Rookwood Commons in Norwood.

City Council last month unanimously approved a financial agreement with the developer, which would pay the city $5,134,000 over 20 years in lieu of property taxes.

But county officials say that figure is too low, and could result in higher taxes for residents of other Kenton County cities to make up for lost property taxes on the site, which is valued at $11 million.

"We would lose $8 million (in property taxes) over 20 years," said Kenton County Judge-executive Ralph Drees.

That figure is based on the new mall being valued at $75 million, which Drees labeled as conservative.

A state committee approved the bond plan March 29, but issued a 30-day deadline for the city and county to agree to terms before the bonds could be issued.

That isn't soon enough for the developer, which hopes to open Crestview Hills Town Center by October 2005.

"The timing of the redevelopment is the most critical issue for the developer," said Mayor Paul Meier. "They can't have any delay."

Drees said he suspects that Anderson officials, who did not return Enquirer phone calls, want to get started quickly so they can sign up tenants before a similar development, the $56 million Buttermilk Town Center in nearby Crescent Springs, gets under way.

"They want first crack at the first and the best stores," Drees said.

The new mall would generate an additional $120,000 in other taxes annually, including payroll taxes, Meier said. The city currently receives about $18,000 per year in property taxes on Crestview Hills Mall.

If efforts to finance the project fail, the city would seek another developer for the site, which sits along Interstate 275 within minutes of Interstate 75.

"We'll go back to square one and try to redevelop," Groth said.