St. Louis is issuing fewer tax incentives for development projects within the city limits.
Incentives are approved by both the Land Clearance for Redevelopment Authority Board and the Board of Aldermen, and in 2017 both bodies approved incentives for 66 projects. That number dwindled to 11 in 2023.
The figures come from a presentation by the St. Louis Development Corporation on Tuesday to the Board of Aldermen鈥檚 Housing, Urban Development and Zoning Committee, the first time SLDC has presented such a report. It鈥檚 an annual report .
鈥淲e鈥檝e cut back on incentives quite a bit on projects that actually need it versus using it a lot on many possible projects that didn鈥檛 need it in the past,鈥� said Zachary Wilson, SLDC鈥檚 vice president of economic development incentives.
The presentation also showed a sharp difference between the number of projects receiving approval for tax incentives and those projects that then activated them. Projects must be completed and comply with city rules for minority- and women-owned business participation goals, workforce development and prevailing wage, to make use of an incentive.
鈥淭his department does not hand out cash,鈥� Wilson said. 鈥淲e save money in the long term for the developer, and they build that into their loan.鈥�
Wilson acknowledged that the process to win approval for development tax incentives in St. Louis is much more rigorous than in municipalities in neighboring counties.聽
鈥淭hey have hardly any requirements on their incentives,鈥� he said.
It鈥檚 something Ward 9 Alderman Michael Browning echoed.
鈥淭hat makes it tough to compete,鈥� he said, adding he still supports more stringent requirements and guidelines for tax incentives.
The presentation to the Board of Aldermen committee also comes nearly two years after SLDC revamped to better align with what local neighborhoods want. These changes are ones many aldermen, including Ward 14 Alderman Rasheen Aldridge, said they were pleased with.
鈥淏eing very strategic on (incentives) will be able to bring a different type of growth and development to the community,鈥� he said. 鈥淚t may be a hindrance to us, because counterparts in the region don鈥檛 do that.鈥�
Wilson added the updated process has him pushing developers to reach out to the community much earlier.
鈥淓ven before I get an application people call and have questions about incentives, I say, 鈥榶ou have to talk to neighborhood groups,鈥欌�� he said. 鈥溾�榊ou have to get involved as soon as possible.鈥欌��
