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DEF is a non-partisan, independent political blog based in the
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on lawmakers, their policies, and those that have influence upon
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The Department of Economic Development (DED) has approved the establishment of an Enhanced Enterprise Zone (EEZ) in St. Louis.
The city's EEZ covers the entire riverfront as well as large sections of the Northside and areas along highways 44, 64 and 70. According to the EEZ law, new and expanding businesses in the zone that are not gambling, retail trade or food and drink establishments are eligible for yearly tax credits for up to five years. The DED and the City will determine eligibility for the credits, and businesses may apply for an additional five year credit period if they plan further expansion.
The law also states that all businesses receiving credits must meet job and investment criteria. For businesses that are expanding or building new facilities this means creating at least two new jobs and making a $100,000 investment. Businesses that are building replacement facilities must meet the same job requirement, but also make a $1 million investment.
But not every business that builds in the EEZ necessarily gets credits. The DED awards credits on a case-by-case basis after the business goes through an application process. Businesses moving to an EEZ from elsewhere in Missouri must present the DED with approval for job relocation from the local government where the jobs are held.
Finally, any organizations taking advantage of existing tax credit programs, including the Brownfield Redevelopment Program, cannot receive EEZ credits.
The I-70 Northwest Development Corporation of St. Louis will receive $95,000 in Neighborhood Assistance Program (NAP) tax credits to build a senior care center. The center will take up just over half of a 4,308-square foot mixed-use building.
Dubbed the Kingsway Adult Day Care Center, the facility will provide health monitoring, social and personal care services, meals, transportation and educational and therapeutic workshops and activities to 24 senior citizens.
The $95,000 is part of $499,700 in NAP tax credits awarded by the Department of Economic Development to Missouri not-for-profits. Other organizations receiving funding include the Center for the Visually Impaired in Kansas City, Sylvan School, Inc. in Poplar Bluff and the Pregnancy Care Center in Springfield.
Governor Matt Blunt has announced that Parkside Towers, LLC will receive $5.1 million in redemption tax credits. The credits come as part of the Department of Economic Development's (DED) Brownfield Redevelopment Program, which gives incentives for the redevelopment of contaminated and underutilized commercial and industrial sites. According to Blunt's office, the property is currently contaminated with asbestos and lead-based paint.
Parkside is receiving the incentives for their plan to redevelop the Park Pacific property at 210 N. 13th Street. Missouri Pacific Railroad abandoned the property in 2003 and Parkside plans to turn the property into commercial, retail and residential space, including restaurants, offices and condos.
Residents of Lafayette Square got a first look tonight at plans for a new development on the site of the old Praxair chemical plant.
Located on the corner of Missouri and Chouteau Avenues in south St. Louis, the vacant three-block area was home to Praxair, which was leveled by explosions and fire in 2005.
The exact specifications have yet to be worked out, but developers Jeff Winzerling and Pete Rothschild have come up with a $41 million plan that would incorporate condos, town homes, parking lots, a community park and retail and office space into the now vacant area.
Click here to see the Lafayette Square neighborhood's current urban plan.
By a unanimous vote yesterday, a State Senate committee approved House Bill 1, the economic development package which includes the controversial Distressed Area Land Assemblage Tax Credit. The committee also passed two amendments to address some outstanding concerns with the credit. From the Post-Dispatch:
The revision stipulates that the tax credit cannot assist developers with outstanding fines, bills or taxes to a municipality. As of last month, public records indicate that McKee owed more than $35,000 in fees to the city for providing upkeep at the abandoned tracts, though city officials say they are satisfied the money will be paid.
The panel also approved an amendment ensuring that public hearings are held before the approval of any project qualifying for the tax credit. Last week, the House approved an amendment requiring local elected officials to sign off on qualifying projects.
After a move by State Representative Jamilah Nasheed to force a vote on the Land Assemblage Tax Credit separately from the larger economic development package, the credit still passed by a large margin of 106 to 45, with six members absent.
Voting in favor of the tax credit were Representatives T.D. El-Amin, Rodney Hubbard*, Connie Johnson and Tom Villa.
Voting against were Representatives Mike Daus, Jamilah Nasheed, Jeanette Mott Oxford and Robyn Wright-Jones.
Speaking on the floor in favor of the bill, Representative Hubbard said, "With the addition of local control, any concerns that people have with any proposed development can now be addressed at the local level."
Hubbard also read from an editorial in today's St. Louis American which said, "What is certain is that North City needs major development, and economic development in distressed areas in particular is driven by tax credits. It is also certain that a move from blight of its current scale (and not only on properties owned by McKee) to a project worth major investment is almost certain to involve compromises by North City residents and officials who represent them..." *Hubbard is a client of A D French & Assoc.
VIDEO: Michael Allen Outlines Possible Improvements to Tax Credit Bill
By Antonio D. French
Filed
Wednesday, August 22, 2007 at 7:34 AM
Michael Allen, the blogger whose research into the once-mysterious Blairmont land acquisitions led to all the attention the Land Assemblage Tax Credit is getting today, testified yesterday in Jefferson City on ways to make the legislation better.
At yesterday's committee hearing on Governor Matt Blunt's economic development package, which includes the controversial Land Assemblage Tax Credit, State Rep. Rodney Hubbard* offered an amendment to require any redevelopment plan to be approved by the the Board of Aldermen. The committee passed the amendment 11-0.
Hubbard also offered an amendment to shrink the amount of land a developer needed to qualify for the credit from the current 50 acres down to just two. Committee Chair Ron Richard (R-Joplin) said he felt that amounted to "gutting the bill" and recommended the committee members vote against it, which they did.
Hubbard also attempted to add language that would require three public meetings be held before any redevelopment plan is approved. Committee members said they felt the local control amendment put in the hands of the Board of Aldermen the power to conduct as many meetings as they choose before they approve the redevelopment plan.
St. Louis Alderman Charles Quincy Troupe, a longtime critic of the city's Land Reutilization Authority's land-banking policy, testified today in Jefferson City that the proposed Land Assemblage Tax Credit would be good for north St. Louis — but only if it was amended to require any redevelopment plan eligible for the credit to first be approved by the Board of Aldermen.
Troupe said St. Louis has suffered over the years from "corrupt and backwards and sometimes outright stupid" policies. He pointed to the twenty-year-old LRA policy of acquiring thousands of properties, mostly in north St. Louis, and routinely denying independent rehabbers a chance to purchase one or two properties at a time.
With the protection of local control, Troupe said he supports this tax credit bill and sees it as promising for much needed investment.
Following Troupe's testimony, State Rep. Rodney Hubbard* offered an amendment, which was approved by the committee, to require any redevelopment plan to be approved by the the Board of Aldermen. *Hubbard is a client of A.D. French & Associates
Supporters of the proposed Land Assemblage Tax Credit bill testified today before the House Special Committee on Job Creation and Economic Development in support of the legislation.
St. Louis Mayor Francis Slay's chief of staff Jeff Rainford; Rev. James Morris; John Cross of SEIU Local 2000; and Robert Tillman, a 19th Ward homeowner, were among those who said the proposal will allow for much needed and much delayed development to begin in north St. Louis.
When it comes to the proposed Land Assemblage Tax Credit, the devil is in the details.
A story in today's Post-Dispatch says leaders in the Republican-controlled legislature are confident that a scaled-back version of Governor Matt Blunt's economic development package will pass during the special session which begins tomorrow. Included in that package is the controversial tax credit which as originally passed seemed to include parameters that only one known developer could qualify for.
Developer Paul J. McKee Jr. has purchased more than 500 tracts of land in and around Old North St. Louis, land that could be used in part to qualify for such tax credits.
Blunt says the new bill would broaden the program so that more developers could participate. Under the latest draft, the subsidy could go to those who buy at least 50 acres for projects covering at least 75 acres in low-income areas. Up to $10 million in credits could be issued each year until the total hit $95 million.
The sponsor, Sen. John Griesheimer, R-Washington, Mo., said he believed the new proposal satisfies concerns that the program was designed for one man. Griesheimer added that McKee "ought to be nominated for sainthood" for investing in decaying areas of St. Louis.
Senator Griesheimer may feel differently about McKee's qualifications for sainthood after he watches PubDef's latest video on the St. Charles developer's northside activities. Check back Monday for that special report.
Lowering the requirement of the acreage needed in order for a developer to qualify for the tax credit is a step in the right direction, said the original Blairmont watchdog, Michael Allen. But at 50 acres, the bill would still make McKee the only likely applicant in Old North St. Louis.
"What we need is a threshold much lower than that, closer to half that number," said Allen. "At 20 to 25 acres, other developers and even established neighborhood organizations could apply and receive these tax credits."
PubDef will be reporting this week from the special session in Jefferson City, following the negotiations as legislators, lobbyists and residents try to reach a compromise.
According to the Post, the Legislature's schedule calls for a House committee to hold a hearing on the bill on Tuesday. The full House will vote Thursday. A Senate hearing will take place Aug. 27 and the full Senate could vote Aug. 29.
Legislators: "Blairmont" Credit Should Be Amended, Opened to More Than McKee
By Antonio D. French
Filed
Thursday, August 16, 2007 at 8:54 PM
A group of St. Louis legislators, including State Reps Jamilah Nasheed, Jeanette Mott Oxford and Rodney Hubbard*, State Senator Harry Kennedy, Aldermen April Ford Griffin, Dionne Flowers, Freeman Bosley, Sr., Jeffrey Boyd, Marlene Davis, Terry Kennedy, Frank Williamson, Bill Waterhouse, and Aldermanic President Lewis Reed*, today called for the controversial Land Assemblage Tax Credit to be amended during next week's special session.
At a press conference this morning at the corner of Montgomery Street and N. Garrison Avenue in north St. Louis, 5th Ward Alderman April Ford-Griffin voiced her concerns about the proposed Land Assemblage Tax Credit that is once again being discussed by state legislators.
Griffin echoed concerns that the bill needs to be amended to allow others beside controversial St. Charles developer Paul McKee to benefit. According to Griffin, McKee has intentionally allowed his 500-plus properties in north St. Louis to deteriorate — and in some cases, workers have intentionally knocked down walls and destroyed foundations — in order to drop the property values and buy more land.
Griffin said the state legislature should not reward McKee for his poor stewardship of these properties.
Griffin also accused Mayor Francis Slay's office someone in city government of sending city workers to McKee's sites yesterday to clean up his lots ahead of today's press event.
Several other aldermen, including Charles Troupe, Dionne Flowers, Freeman Bosley, Sr., Marlene Davis, Jeffrey Boyd, Terry Kennedy, Frank Williamson, Bill Waterhouse, and Board President Lewis Reed attended the event. State Reps Jeanette Mott Oxford and Jamilah Nasheed, who both helped organize the event, were joined by colleagues Rodney Hubbard, Cynthia Davis (R-O'Fallon) and Ron Casey (D-Crystal City). License Collector and former 19th Ward alderman Mike McMillan also attended.
When a group of local lawmakers lead a tour of some of north St. Louis' most blighted areas Thursday, they'll do so to call attention to the need for development and state investment in those areas.
They'll also be illustrating why they believe the proposed $100 million Land Assemblage Tax Credit should be amended to allow other developers besides Paul McKee to qualify for it.
State Reps Jeanette Mott Oxford, Jamilah Nasheed and Rodney Hubbard*; and Aldermen April Ford-Griffin and Marlene Davis will lead a group of invited guests, including other state legislators, around parts of the 5th and 19th Wards where McKee has quietly aquired more than 500 properties.
Many of McKee's buildings have become eye sores and nuisance properties in neighborhoods occupied by longtime residents holding out for the city's "renaissance" to come their way and new residents pioneering to rehabilitate a once great area.
Oxford and Davis each told PubDef that they welcome the state's attempt to spur development, but that they would like to see the legislation, which will be voted on next week, amended to allow more developers to participate.
The legislators' press conference is set for Thursday at 10:00 a.m. at 2950 Montgomery, with a bus tour to follow at 10:30 a.m.
PubDef will be reporting next week from the special session in Jefferson City, following the negotiations as legislators, lobbyists and residents try to reach a compromise that allows north St. Louis to benefit from needed investment, while not cutting all but just one or two would-be developers out of the project. *Rodney Hubbard is a client of A D French & Associates
Longtime "Blairmont" watchdog Michael Allen sat down with PubDef Friday to discuss Governor Matt Blunt's veto just hours earlier of the giant economic development bill that included a $100 million tax credit for one man, developer Paul McKee.
In addition to giving his reaction to the veto, Allen, an Old North resident who said he fully supports the state earmarking millions of dollars in tax credits to rebuild north St. Louis, suggested ways that McKee and state legislators can craft a better piece of legislation next year — one which residents and local elected officials can support.
In Monday's edition of the Mexico Ledger — out of Mexico, Missouri — reporter Tim Hare looks at House Bill 327. It seems there's a little bit for everybody in the the giant givaway legislation.
From the article:
Referring to its potential to help create quality jobs, Senator Wes Shoemyer urged area residents to encourage Governor Matt Blunt to sign House Bill 327.
Shoemyer made the appeal during a legislative breakfast held Friday morning at the Mexico Area Chamber of Commerce. He indicated final approval of the bill could have direct benefit for Mexico and its residents.
Among the provisions of HB327 are changes to existing elements of the Quality Jobs program, including raising tax credit caps, utilizing tax credit offsets, and providing for certain tax exemptions."
The article continues:
HB327 has recently come under greater scrutiny following revelations that Paul McKee Jr., a St. Louis-based developer with political ties, could potentially greatly benefit, especially from provisions in the bill that would provide tax credits eliminating interest costs and half of eligible land costs.
Sen. Delbert Scott of Lowry City has decried the bill, stating from the Senate floor in May, "It's an attempt to hide a big pot of money for one guy. The whole thing stinks."
While the governor does have line-item veto authorization on appropriations bills, the line-item veto is not permissible under state guidelines on tax credit legislation.
If necessary, Shoemyer said Blunt "could call a special session with a narrow call on it so he knows he would get clean legislation," and also questioned whether the St. Louis developer in question would be able to meet certain eligibility requirements.
Michael Allen, the unofficial Blairmont watchdog and half of the writing team behind the Ecology of Absence blog, says developer Paul McKee is continuing his acquisition of a large portion of north St. Louis, despite public claims to the contrary.
According to Allen, one of McKee's mysterious Blairmont companies, MLK 3000 LLC, spent $935,400 between May 17 and June 20 in order to acquire nine properties.
The properties and their recorded sales prices are:
2517 North Market, $92,000.00
2225 Mullanphy, $80,500.00
2223 Mullanphy, $80,500.00
2221 Madison, $74,750.00
1902 Dodier: $115,000
1831 Laflin, $78,200.00
1836-42 N. 22nd, $147,200.00
2529-31 Hebert, $97,750.00
2500 Sullivan, $172,500.00
According to Allen, the deeds are signed by Roberta M. Defiore, manager of MLK 3000 LLC and former consultant to the Archdiocese Office of Urban and Community Affairs. The loans come from the Parkburg Fund LC, an entity incorporated in August 2006 prior to MLK 3000 LLC's first purchase.
Here is a video produced a while back on Blairmont, featuring Michael Allen:
Many people are still waiting to see if Governor Blunt signs the huge tax credit bill that would provide as much as a $100 million subsidy for McKee's still-secret plan.
