By Antonio D. French
Filed Monday, February 20 at 6:29 AM
Alderman Greg Carter (27th Ward) has introduced a bill that would require future TIF projects to pay a minimum of 50% of taxes on any residential component of the redevelopment.
Board Bill 421 follows the recommendation of Comptroller Darlene Green who has warned of the negative effects on the city and its schools by allowing so many new developments to go without paying taxes.
The bill states: "TIF has a financial impact on not only the City but also the St. Louis Public School District, the Metropolitan Zoological Park and Museum, the Junior College District, the Metropolitan Sewer District, the Missouri Division of Family Services, the St. Louis Office for Mental Retardation Development Disability Resources, the St. Louis Public Libraries, and the City of St. Louis Mental Health Board of Trustees, for the reason that tax levies on real property which would be otherwise be distributed are allowed to retire obligations of the redevelopment project."
Carter's bill was first read on Thursday and has been sent to the Housing, Urban Development and Zoning committee.
9 Comments:
So Carter wants to kill the redevelopment of St. Louis Centre? At least the condo or "residential component" of this desperately needed yet creatively financed project.
6:48 AM, February 21, 2006
I would have to side with Slay and McGowan. I do not think this is the right time to reduce TIF's.
I do not think throwing more money at the SLPSD will create a huge difference either. We should wait for the other reforms to take place.
7:04 AM, February 21, 2006
Diverting half of the TIF dollars on the residential portion of the STL Center development to the city, SLPS, etc. will not kill this project.
Honestly, should $900,000 condos be built with tax dollars?
Only developer greed can kill the STL Center project.
7:18 AM, February 21, 2006
900,000 Condos will bring residents downtown, and their dollars with them.
Do not forget they start at 150,000 which I would buy if I was not in college.
The tax dollars given to developers will be paid back easily once residents and business increases downtown. This is a basic fact.
You spend money to make money.
7:25 AM, February 21, 2006
A TIF lasts 23 years. That means that the taxing districts do not see a penny of the property taxes for 23 years.
As for spending money to make money, that does not work for downtown. Many (if not all) the businesses have TIF. This means sales and other taxes go to the developer as well for 23 years.
That's too long to wait for return on investment while the city budget takes the hit.
8:56 AM, February 21, 2006
What I am talking about is economic development. Spending tax dollars to get development yeilds economic activity and jobs for downtown. More residents move in, more shops open, which equals a downtown that is alive past 5 PM.
If we reduce TIFS prematurely, then development may move to other cities which have not reduced TIF payoffs.
10:08 AM, February 21, 2006
It's too early to even know if the boom will last 23 years, let alone 15. Carter has the right idea.
Pyramid won't be stopped by his bill. They will just have to make less money. Boo-hoo. As a consolation, they got almost all of the state affordable housing tax credits allocated to St. Louis anyway -- at the expense of actual affordable housing projects.
Pyramid's greed needs a brake.
10:11 AM, February 21, 2006
TIF only redirects the incremental increase in taxes to pay off improvements related to a development. SLPS redirects huge chunks of its budget all the time into items not benefitting the entire school district, while TIF only taps the increase over past revenues for a set period of time.
1:41 PM, February 21, 2006
You are right. The property tax increment, all of it, goes directley into the developers pocket for 23 years.
Not one penny of property tax revenue will go to fund the increased police and fire protection needed for the hundreds of new downtown residents added by St. louis Centre for 23 years.
That burden will fall on the people who pay taxes that actually go to the city--a decreasing majority.
6:36 AM, February 22, 2006
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