Senate Substitute for Senate Committee Substitute for House Committee Substitute for House Bill 191

It is likely that a substitute for the House’s original economic development bill will be brought to the Senate floor at some point this week. An earlier version of this substitute is available on the Coalition’s legislative update page. It is anticipated that the legislation will include a $100 million cap on historic tax credit, with supplemental appropriations, and a per-project cap on residential rehabilitation.

House Committee Substitute for Senate Bill 377

This bill has been placed on the informal calendar, and may be brought to the House floor this week. It currently contains a $165 million cap, with exemptions for projects that receive less than $350,000 of historic credits. Language is available on our legislative update page.

House Committee Substitute for Senate Bill 280

Although HCS/SB 280 currently exists as a bill which calls for insurance companies’ exemption from state corporate income and franchise taxes, it is suspected that this bill could be used as a vehicle for economic development language. And, given that historic tax credit cuts have frequently been tacked on to such bills throughout this year’s session, HCS/SB 280 is a bill of interest.

House Committee Substitute for Senate Bill 215

After hitting a roadblock in the Senate on Thursday of last week, this bill now has the potential to come up at any time. Currently, HCS/SB 215 does not contain any tax credit language. However, it is possible that the bill could be sent to conference and allowed to include historic tax credit cutbacks if the Senate and House vote to exceed the differences.

(Legislative Update courtesy of Missouri Coalition for Historic Preservation & Economic Development)

Courthouse (Lexington, MO)

Missouri’s Historic Tax Credit program is under fire by a group of senators who have sought to frame this debate in terms of “urban” versus “rural.” They cite examples such as the plans for the Ballpark Village in St. Louis to argue that the Historic Tax Credits only benefit big developers in urban centers.

The reality is, however, that HTCs have actually been used by communities across the state of Missouri. Cities and towns that have utilized HTCs include: Arcadia, Boonville, Butler, California, Cape Girardeau, Carthage, Chesterfield, Chillicothe, Clarksville, Columbia, Danville, Excelsior Springs, Farmington, Fayette, Ferguson, Florissant, Fulton, Glasgow, Hannibal, Hartsburg, Hermann, Independence, Jefferson City, Joplin, Kansas City, Kennett, King City, Kirkwood, Lee’s Summit, Lexington, Liberty, Louisiana, Manchester, Maplewood, Neosho, Nevada, New Haven, New Melle, North Kansas City, Osceola, Park Hills and Pilot Grove, through Rocheport, St. Charles, St. Joseph, St. Louis, Ste. Genevieve, Sedalia, Springfield, Trenton, University City, Webster Groves, Wellston, West Plains, Weston, Wildwood and Wright City.

According to the Missouri Coalition for Historic Preservation and Economic Development, between 1998 and 2006, more than 900 historic renovation projects were completed across the state of Missouri in 37 counties and 55 communities.

Courthouse Square Historic District (West Plains, MO)

Another important fact is that the vast majority of HTCs in Missouri have not gone to large-scale redevelopment projects, but rather to small homeowners and developers. The break-down goes like this: Over the past decade, only 11% of all projects spent over $5 million in rehabilitation, while 2/3rds were less than $500,000. The people that really benefit from this tax credit are not the big developers, but rather, the independent “mom and pop” in communities across the state.

Not only is the HTC program is utilized by developers statewide, but also large historic preservation projects in places like Springfield, Jeff City, KC, and St. Louis employ many laborers from small communities across Missouri. These renovation projects typically require a high level of skill, and therefore are some of the highest paying blue-collar jobs available.

If the HTC program receives a cap and becomes subject to annual appropriations, obtaining this tax credit will become a political process. Leaving the HTC uncapped allows for it to function through efficient markets; whereas putting a limit on it subjects the HTC to lobbyists and those with political power. Based on the “reformers” arguments, it is ironic to realize that capping the HTC would end up benefiting big developers, while limiting the availability of tax credits in small communities across Missouri.

It is vital to continue the historic tax credit program without any changes so that the credits may continue to spread to smaller communities throughout the state.

Southeast Missourian Newspaper Building (Cape Girardeau, MO)

The following state senators and representatives are in support of the Historic Tax Credit program:

Senator Jeff Smith (D-4)

Senator Jane Cunningham (R-7)

Senator Tom Dempsey (R-23)

Senator David Pearce (R-31)

Senator Eric Schmitt (R-15)

Senator Wright-Jones (D-5)

Senator Jolie Justus (D-10)

Senator Rita Heard Days (D-14)

Senator Yvonne Wilson (D-9)

Senator Wes Shoemyer (D-18)

Representative Ron Richard (R-129) (Speaker of the House)

The following 6 senators, lead by Senator Lager, constitute the group of legislators who would place limitations on the Historic Tax Credit:

Senator Brad Lager (R-12)

Senator Jim Lembke (R-1)

Senator Jason Crowell (R-27)

Senator Matt Bartle (R-8)

Senator Luann Ridgeway (R-17)

Senator Chuck Purgason (R-33)

The following legislators are on-the-fence regarding the proposed limitations on Historic Tax Credits:

Senator Griesheimer (R-26) (Chair of Senate Economic Development Committee)

Representative Timothy Flook (R-34) (Chair of House Economic Development Committee)

Note: At this time, the majority of the House remains on the fence in relation to this issue.

FYI:

Map: Missouri Senatorial Districts

Map: Missouri House of Representatives Districts

***Find out who your Legislators are!

In St. Louis alone, Historic Tax Credits have been responsible for the dramatic redevelopment of the downtown center, as well as the restoration of significant historic properties such as the Chase Park Plaza, the Moolah, and the old Post Office Building. These Tax Credits have also contributed to the revitalization of historic neighborhoods across the city. The Historic Tax Credit program has had similar effects in other Missouri cities, including Springfield, Columbia, and Cape Girardeau, as well as smaller communities statewide.

The Chase Park Plaza (Central West End, St. Louis)

The Fight over Historic Tax Credits
Missouri’s Historic Tax Credit is currently under fire in the State senate. Headed by  Senator Brad Lager, a group of Republican senators is seeking to set a 2 year sunset and a cap (between $50-100 million) on the state’s Historic Tax Credit program. To put this figure in perspective, two years ago the state awarded more than $171 million in Historic Tax Credits, while last year the amount was $162 million (sbj.net). Several of these so-called “reformers” would also like to subject the Historic Tax Credit to annual appropriations.

With only four weeks remaining in the current legislative session, the debate over Historic Tax Credits is expected to resurface on the Senate floor. St. Louis senator, Jeff Smith, for one, is committed to fighting against the proposed cap. It is his belief that no bill at all would be better than seeing one pass which includes the current proposed “reforms” to the Historic Tax Credit program.

The historic Coronado building (Midtown, St. Louis)

Some Initial Talking Points

Historic Tax Credits create jobs and result in additional income for Missourians. In fiscal year 2007 alone, the historic preservation credit put over 4,900 Missourians to work. And, according to the foremost preservation economist in the United States, Historic Tax Credits have resulted in a total of 40,000 jobs since 1998. With a return to the state of over one dollar for each credit dollar issued, the Historic Tax Credit has resulted in $673 million direct and $700 million indirect additional income for Missouri taxpayers (Rypkema 2008).

Historic Tax Credits result in increased investment. More than $4 billion of investment has been leveraged throughout the state by the historic preservation tax credit. In FY2007 alone, amount leveraged totaled $729,637,669.

Historic tax credits affect the entire state of Missouri. According to the Missouri Coalition for Historic Preservation and Economic Development, between 1998 and 2006, more than 900 historic renovation projects were completed across the state of Missouri in 37 counties and 55 communities.

The vast majority of historic tax credits benefit small homeowners and developers. Since 2000, over 85% of projects have used under $1 million of tax credits, and 92.5% have been issued less than $2 million.

In addition, redevelopment projects that receive Historic Tax Credits employ many laborers from small communities across Missouri.

Historic preservation preserves the historic character of both residential and commercial communities. The biggest beneficiaries of historic preservation are local citizens, who work and live in distinctive, attractive places imbued with a sense of place.

Soulard historic neighborhood (St. Louis)

As a result of the Historic Tax Credit, Missouri leads the nation in historic preservation. The Historic Tax Credit has been so successful that several states, including Iowa, Massachusetts, Tennessee, North Carolina, Wisconsin and Maryland have made efforts to imitate the credit.

Capping the Historic Tax Credit will halt redevelopment and destroy the program. Renovated buildings must be completed and certified prior to the tax credit being issued. If developers/owners are not certain that a credit will be available, they will not make the initial investment. The credit is essential to making the project work.

Capping the Historic Tax Credit will benefit big developers and limit the availability of tax credits in small communities across Missouri. “If the credit is capped, and the credit run through an appropriations process, issuance of the credit will become a political process… A cap and appropriation will benefit the big developers who can afford to gain influence and work at getting credits full time (ecoabsence.blogspot.com).”

HTCs create jobs and result in additional income for Missouri taxpayers. In fiscal year 2007, the historic preservation credit put over 4,900 Missourians to work – that’s more than double the jobs created over the past four years by the Quality Jobs Act. And, according to the foremost preservation economist in the United States, historic preservation credits have resulted in a total of 40,000 jobs since 1998. With a return to the state of over one dollar for each credit dollar issued, the HTC has result in $673 million direct and $700 million indirect additional income for Missouri taxpayers (Rypkema 2008). For every one million dollars of spending on historic rehabilitation, local income increases by $704,000 and 20.2 jobs are created. Those results significantly exceed payback from other types of state investment (e.g. one million dollars of manufacturing output adds an average of $470,000 to local household incomes and creates 13.9 jobs) (Rypkema 2008).

HTCs increase industry. The historic preservation credit program has enabled an entire industry of historic redevelopment to emerge throughout the state. Architects, engineers, consultants, lawyers, contractors, sub-contractors, accountants, and highly skilled construction laborers are employed as a direct result of historic tax credits. These jobs cannot be shipped overseas; they are done right here in Missouri. A prime example of this is Quaker Windows, which was founded in 1949 by Marge and Harold “Bud” Knoll, and now employs over 400 workers in Freeburg, Missouri. The company supplies custom windows for historic projects throughout the country – in the states of Missouri, New York, and others. Quaker Windows is just one of many Missouri small businesses that continue to exist as a direct result of the specialized historic supply industry.

HTC result in increased investment. More than $4 billion of investment has been leveraged throughout the state by the historic preservation tax credit. In FY2007 alone, amount leveraged totaled $729,637,669. The Southeast Missourian reports on the case of the Missourian in Cape Girardeau, which spent millions of dollars on improvements: “dollars, which it would not have spent otherwise, hiring local contractors and workers, buying new mechanicals, contracting for state-based expertise (much local) in design, architecture and historic preservation (semissourian).”

HTCs increase both state and local tax revenues. One million dollars of rehabilitation investment results in an $110,000 increase in state taxes and $92,000 in local taxes (Rypkema 2008).

Historic preservation results in revenue from heritage tourism. According to a recent study by the Center for Urban Policy Research at Rutgers University, historic preservation in Missouri results in $660 million annual revenue from heritage tourism. Again, annually, that’s 20,0777 jobs, $325 million in income, $574 million in gross state product, and $79 million in state and local taxes and in-state wealth creation of $506 million.

Historic buildings are natural incubators for small businesses. 90% of all businesses in the U.S. employ fewer than 20 people; 60% fewer than 5. One of the biggest costs for business of this size is rent. In downtowns and neighborhood commercial districts “a major contribution to the local economy is the relative affordability of older buildlings” (Rypkema 2008).

Historic buildings create opportunities for affordable housing. “For a long time affordability was a social service issue-how do we house the least fortunate among us. Today it has become a central economic development issue” (Rypkema 2008).

Historic communities provide proximity to daily needs for people of modest means. “People of modest means need more then just low rent. They also need proximity–to schools, shopping, work, and transportation. Where are those daily needs always nearby? In our older and historic neighborhoods” (Rypkema 2008)

According to Rypkema, historic preservation should be a central strategy of every community. Any way you look at it, historic preservation adds value.

Statement from Sylvester Brown regarding termination from the St. Louis Post-Dispatch as issued at press conference on April 13, 2009:

Thank you for coming today…

For reasons I think you’ll understand, I humbly ask that you allow me to deliver this prepared statement without follow up questions.

Last week, I learned through my union, the St. Louis Newspaper Guild, that upper management at the St. Louis Post-Dispatch had decided to discharge me for violating the company’s ethics policy.

On March 27, I was told by upper management to leave the building, pending an investigation. I have not been allowed access since — not even to gather my personal belongings or to shake hands with the colleagues and friends I’ve made over the past nearly six years.

I’ve called this press conference to bid farewell to my friends at the Post Dispatch and the loyal readers who have made this enjoyable but at times difficult journey with me over the years.

Secondly, I’m here today to stand up for my name and reputation, which in the end, is all we really have.

I’m not going to use this occasion to debate the allegations made against me. We’ve passed out cards with my blog address, “sylvesterbrownjr.blogspot.com.” There, you will be able to review facts related to this battle, keep up with my work and monitor future developments.

In short, management alleges that I took a plane trip to Washington DC on March 26 as a gift in return for a column I wrote on and turned in the day before about a renewable energy project in East St. Louis.

I’m here to tell you that these charges are a gross distortion of the facts, which in my view, have been purposely manipulated to provide cover for far more desperate and nefarious acts within this once proud and honorable institution.

These are indeed desperate times in our industry. I fully expected the Post to drastically trim budgets and cut staff. The number of talented, seasoned journalists, who have been marched out of this building these past few years, speaks volumes about a frantic effort to survive while sacrificing, in my opinion, the integrity and goodwill once enjoyed by the Post-Dispatch.

However, and I’m embarrassed to admit it, I did not expect the Post to stoop to this – even in light of their pattern of distaste for me.

I did not expect my bosses to jump to an erroneous conclusion and immediately reduce me to nothing more than a stereotype.

Upper management, without the common courtesy of an explanation, quickly jumped on a stubborn, punitive, path of action and refused to back down even after the facts refuted their knee-jerk suspicions.

If management had bothered to ask, they would have known that my trip had nothing to do with East St. Louis. If they had taken time to really know me, my past, my passions (inside and outside the Post walls) about investing in black youth and creating vibrant, sustainable urban communities, they would have instinctively understood why the Summit Council for World Peace – an international organization dedicated to addressing the crisis of world-wide poverty – invited me to Washington and offered to reimburse me for the trip.

Unlike the Post, this agency, through former Congressman Walter Fauntroy, took interest in a book I’m working on which calls for a serious re-alignment of the black leadership agenda in order to work in accord with President Obama’s innovative initiatives that may finally effect real, long-lasting change in low-income, urban neighborhoods.

Sadly, management at the Post-Dispatch, in my opinion, embarked on and furthered a small-minded, predictable and divisive agenda, instead of welcoming my project, respecting me and a call for action in perilous times.

Five days after I was locked out the building, the Guild suggested that management at least hear my side of the story. Eleven days after I suspect they combed through my e-mails, looking for evidence to bolster their ridiculous claim, I heard from the guild.

Although I’ve been told that management hasn’t talked to one person involved with the DC trip, they decided to terminate me. A reason cited for my termination, the union tells me, was that management didn’t consider me “remorseful.”

On the same day the company decided to fire me, I learned through the grapevine that two other columnists were given a day’s suspension because they allegedly violated the company’s ethics policy for working with competing media.

The following day, after I heard of my discharge, the union called to share an offer from the Post to “protect my reputation.”

If I agreed to resign, which I understand requires I cannot speak, I would receive four weeks severance pay and the opportunity to freelance and/or write a farewell column. Under this arrangement, I was told, management wouldn’t leak the reasons for my termination.

Well, Post-Dispatch, thanks, but no thanks.

Just as I did not sell out for a plane trip, I do not sell out my integrity, my name or truth.

I’ll protect the reputation I’ve built in this community these past 22 years.

It’s apparent the Post doesn’t know me like my friends, colleagues and this community knows me. So let me be clear: I have no reason to be remorseful. The truth counters a need for remorse. I’m too stubborn to keep my mouth shut, too proud to cast down my eyes, and too old to shuffle.

The Guild’s executive committee voted unanimously to use all necessary resources to arbitrate this case and get my job back. Although I humbly appreciate its valiant support and its decision to fight these allegations, I’m asking the Guild to fight another day, not for me but for whomever is thrown off the ship next.

I couldn’t, in good conscience, ask my union to fight for a job I could never return to.

It’s clear to me that, even though we have worked together for all these years, management has never known me or what I stand for.

That supposed trained management would insinuate that a one day plane trip, where I spent more time in layovers than I did in Washington, was some sort of pay-off for covering an already written story is beyond logic.

Believe it or not, Post-Dispatch, I’ve been on planes before. This was by no means an exotic excursion.

Since I’m convinced such ridiculous logic has little to do with my termination, I’m forced to believe upper management acted on other, far more suspect motivations.

Perhaps it has something to do with the hasty meeting called after certain folks aligned with Mayor Francis Slay, a member of your community advisory board, issued threats to the newspaper after I wrote about his campaign and administration’s thug-like behavior.

Perhaps the real reason you’ve locked me out of the building is to confiscate the e-mails and letters I sent to the executive and managing editor, begging for intervention into what I described as discriminatory, inconsistent and unnecessarily punitive actions based on one editor’s personal, not professional, perceptions.

Maybe this action is a result of the Oct. 2008 letter I sent to management warning that a newsroom, already seriously lacking in diversity at the bottom and top, could ill afford to continuously mute the most visible and consistent black voice in its employ in response to his questioning of rules and policies drafted or enforced specifically for him.

I suspect that this press conference will send management scurrying to bolster their weak allegations. Be careful Post-Dispatch. My attorneys and the Guild are well aware of your stated reasons for my termination and of our tenuous relationship these past few years. As far as I’m concerned, in your gleeful attempt to rid yourselves of a payroll expense and a confrontational columnist, you’ve already defamed enough good people.

Be careful.

In closing, I want to thank the Post Dispatch readers. I will always value what we shared. Yes, our conversations were sometimes warm, sometimes controversial and sometimes contentious; but what family doesn’t have spicy, emotional debates?

I want to also thank my wonderful, talented colleagues – my friend and mentor Bill McClellan – my buddies Aisha Sultan, Deb Petterson, Carolyn Tuft, Steve Giegerich, Doug Moore, Tim O’Neal, Chris Gooden and so many others I fear I’m leaving out who helped me navigate the newsroom’s sometimes bewildering environment. I will also miss the street-wise banter I had every morning with Keith, Jeff, Kim and the rest of the security team.

Finally, I ask no one to feel sorry for me. So many have lost jobs here and across the country, I’m just among them now.

I’m blessed to have a wife, children, family and friends who value dignity over job security, pride over profit, fortitude over fame and truth over personal rewards.

If you will, feel sorry that this community has lost in the pages of the Post what I believe was a valuable and much needed voice that constantly urged St. Louis to rise above its engrained, petty racial and demographic divisions and explore the wonderful potential of its diverse populace.

If you will, feel sorry for my hardworking colleagues who have to continue fighting despite an upper management who are, in my view, so desperate to save their salaries and their own skin that they will stoop to destroying careers.

I walk away confident that I did my dead-level best to live up to the words mounted on the marble wall in the company’s foyer. Those words, by Joseph Pulitzer, say in part:

“Always fight for progress and reform … never lack sympathy with the poor, always remain devoted to the public welfare … never be afraid to attack wrong ….”

I leave this job with a positive vision toward the future, my shoulders girded and my head held high, knowing that I lived up to Mr. Pulitzer’s mandate.

Further, I am more deeply committed to the issues I have championed all these years. I am more convinced than ever that the charge of journalism is a check and balance fourth branch of government.

I insist that even in an age of spin, truth still matters.

Sadly, I believe the Post-Dispatch management cannot make the same claim.

Thank you.

“If a man is determined through DNA testing not to be the father of a child, he should not be forced to continue making child support payments,” Sen. Smith said. “We’ve seen several instances where genetic testing proves a man is not the biological father of a child, but the court orders him to continue making child support payments. So this bill is simply a matter of fairness.”

In 2008, the state Family Support Division reported 33,810 children were born out of wedlock in Missouri, accounting for approximately 40% of all births in the state. Seven percent of all cases required action to determine paternity.

Under SB 141, the court is required to grant relief and set aside the previous judgment of paternity and child support if a genetic test disproves paternity. The court also must eliminate remaining child support payments, expunge any criminal non-support records, and order the Department of Health and Senior Services to modify the child’s birth certificate. The bill does not provide reimbursement for any child support payments made under a previous judgment.

“A number of states like Florida, Georgia and Ohio have already passed laws freeing men from financial obligations if they find they were deceived into parenthood,” Sen. Smith said. “If a non-biological father wants to continue supporting the child and wants to maintain that relationship, that’s wonderful, but he should not be forced to support someone else’s child.”

Senate Bill 141 now moves to the House for consideration.

(AP) Albany, N.Y. — The two candidates in a New York congressional race that focused on President Obama’s economic policies are separated by only 65 votes with all the precincts reporting and more than 150,000 votes counted.

Democrat Scott Murphy, 38, holds the slim lead over Republican Jim Tedisco, 58. The race will come down to roughly 10,000 absentee ballots, none of which were to be counted on election night, officials said.

The victor will replace Democrat Kirsten Gillibrand, who was appointed to the U.S. Senate to succeed Hillary Rodham Clinton when she became secretary of State.

The League of Women Voters of St. Louis will be moderating a candidate forum for those who seek to be elected Mayor of the City of St. Louis in the April 7, 2009 election. And for the first time, all four candidates — Francis Slay, Robb Cunningham, Elston McCowan and Maida Coleman — have confirmed they will attend.

The forum will be held on Monday, March 30th from 7:00 to 8:30 p.m. at Central Library, the main branch of the St. Louis Public Library, located at 1301 Olive Street . This forum is co-sponsored by the League of Women Voters and the Downtown St. Louis Residents Association.