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Draft "Land Assemblage Tax Credit" Application Ready for Comments
By Antonio D. French
Filed
Tuesday, January 22, 2008 at 1:05 PM
The Missouri Department of Economic Development announced today that a draft of the application for the controversial Land Assemblage Tax Credit has been posted on the department’s web site for public review and comment. Click here to see it.
Passed during a special legislative session last summer, the Distressed Areas Land Assemblage Tax Credit Act received a lot of attention for seeming to be a $100,000,000 tax credit which only one man could currently qualify for. That man, of course, was "Blairmont" developer Paul McKee.
The Act authorizes a tax credit equal to 50 percent of the costs and 100 percent of the interest incurred for the acquisition of an eligible parcel of land located within an economically challenged community. The Missouri Department of Economic Development is charged with administering the program.
“I strongly encourage all interested parties to visit our Internet site to view the draft application and guidelines and provide comments and suggestions,” said Economic Development Director Greg Steinhoff. “This program will provide another excellent tool for transforming economically distressed areas of our state into viable centers of job creation and economic development.”
Comments on the Land Assemblage Tax Credit application are due by 5:00 p.m. on Feb. 29, 2008 and may be sent my email at missouridevelopment@ded.mo.gov, by regular mail at Land Assemblage Tax Credit-Comments, P.O. Box 118, Jefferson City, MO 65102 or by fax at 573-751-9462.
Metropolitan Congregation United will host a public forum featuring developer Paul McKee on Thursday, October 25 at 6:30 PM at the Holy Trinity Church at 3518 North 14th Street. McKee will speak about his plans for the near north side.
McKee owns the Blairmont properties that were at the core of the Land Assemblage Tax Credit Debate.
Speaking at a meeting hosted by Alderman Charles Quincy Troupe Wednesday in north St. Louis, freshman alderman Marlene Davis fired off at legislators that voted in favor of the Distressed Areas Land Assemblage Tax Credit (three of the four northside state reps and both state senators supported it).
She also weighed in on Fire Chief Sherman George's situation. She said voters should hold Mayor Francis Slay accountable in 2009.
Davis joined Troupe in spreading some incorrect information about the Land Assemblage Tax Credit that caused fear in the minds of many poor homeowners in the audience.
She said the legislation was filled with "jargon" that "doesn't mean a whole lot other than [developer Paul McKee] can have what he wants and you don't have no say so."
That is false.
The words which Davis disregarded as "jargon" say that the tax credit can only be awarded after the Board of Aldermen has passed an ordinance approving the redevelopment plan. That process, like with any other bill, means public meetings and hearings.
Any "giving private land or property to a developer" has to be initiated and approved by the Board of Aldermen. This piece of legislation has nothing to do with that process.
Any properties taken by eminent domain, condemnation, or acquired from the LRA are not eligible for this tax credit. Such properties may be part of the total redevelopment, but only if the ordinance passed by the Board of Aldermen says so.
I am not aware of any instance in the history of the Board of Aldermen (and please, if someone knows otherwise, do let me know) when a property was taken by eminent domain without the support of the alderman in whose ward that property was located.
Most of the Blairmont property is located in the 5th Ward where Alderman April Ford-Griffin has said repeatedly that she will not support — and in fact, fight — anyone's property being taken by eminent domain for this project. One can only assume that Davis, in whose ward McKee also owns property, has a similar position.
There is too much on record that developer Paul McKee and the City of St. Louis have done wrong since the inception of this project that there is no need for people to start making things up. It damages the credibility of the valid arguments of people who are serious about making sure this project benefits the people who live there today and it's irresponsible because it uses lies to scare the shit out of people.
While these people keep spinning the events of two weeks ago they are missing the fight which is going on right now.
Details, details. We've said it before and we will keep saying it. The difference between if this thing turns out to be good for St. Louis or very bad for the people who live in the Blairmont area will be in the details.
All the little details not expressly stated in the legislation — you know, all that "jargon" — is being worked out right now by bureaucrats at the Missouri Department of Economic Development in the form of rules. These rules will further lay the groundwork for what can and cannot be done with this money.
Please, no more public meetings and press conferences on old stuff. Three in one week is quite enough.
Will the legislators who are unafraid of big words and legal phrases please get back to the table. This thing is not over. Look for more videos from Wednesday's meeting later.
UPDATE: And if you haven't read the final version of the legislation, here's a link (see pages 13-18).
And if you'd rather watch someone explain it to you (I know you spoiled PubDef readers like the video stuff), here is a very informative 10-minute video of Sally Hemingway from the Department of Economic Development discussing the tax credit in detail.
A group of women legislators, all of whom supported the Distressed Areas Land Assemblage Tax Credit, held a forum at Harris-Stowe University yesterday to inform the public about exactly what it does — and does not — mean for St. Louis.
Before a crowd of about two dozen concerned citizens, State Senators Maida Coleman and Rita Days, State Reps Robin Wright-Jones and Juanita Head Walton, former State Rep Amber Boykins, and Mike Jones, aide to St. Louis County Executive Charlie Dooley, discussed how economically distressed areas such as the City of St. Louis and parts of St. Louis can benefit greatly from state-provided economic incentives to spur needed development.
The public forum provided details and facts in the face of misinformation being put out by some other local elected officials, most notably Alderman Charles Quincy Troupe, who beyond all explanation testified strongly in favor of the tax credit before the House committee (watch the video), but the next day said he was against it and charged that it was a continuation of the Team Four plan.
Troupe is hosting a meeting of his own Wednesday, along with Aldermen Freeman Bosley, Sr., Marlene Davis, and April Ford-Griffin (who was scheduled to be at an event yesterday with tax credit supporters Jeff Smith and Rodney Hubbard).
Perhaps the most informative part of the Harris-Stowe forum was a presentation by Sally Hemingway with the Missouri Department of Economic Development detailing the Distressed Areas Land Assemblage Tax Credit — who can apply for, what it can and cannot be used for, why condemned and eminent domained property will not qualify for the tax credit, and how many areas in the state could potentially benefit from its use.
We may post one or two more videos from this event at PubDef.TV later tonight.
State Senator Jeff Smith, State Rep. Rodney Hubbard, preservationist and Blairmont watchdogMichael Allen, and representatives of Old North St. Louis Restoration Group, the Carr Square Tenant Management Corporation, and the St. Louis Housing Authority gathered yesterday at the 14th Street Mall (which is currently undergoing a $30 million restoration) to discuss the process by which some important amendments were added to the controversial Distressed Areas Land Assemblage Tax Credit and what they will be looking for from developers and the Board of Aldermen as any projects move forward.
Two events will seek to educate the public today on the recently-signed legislation creating the $95 million Distress Areas Land Assemblage Tax Credit.
The first, hosted by Old North St. Louis Restoration Group, is a press conference to discuss the compromise reached in crafting a better bill than was first vetoed by the governor earlier this summer.
State Sen. Jeff Smith, State Rep. Rodney Hubbard*, Alderman April Ford-Griffin, John Burse and Sean Thomas of ONSLRG, and Michael Allen of the Ecology of Absence blog are scheduled to appear. The event happens in front of Old North's offices, 2800 N. 14th Street (at St. Louis Avenue), at 11:00 AM.
The second event is hosted by a group to female state legislators. State Senators Maida Coleman and Rita Days, State Representatives Robin Wright-Jones and Juanita Head-Walton, and former State Rep. Amber Boykins will host a forum at Harris-Stowe State University from 6:00-7:30 PM in the Bank of America Theatre.
We've also heard there may be yet another forum Wednesday hosted by a group of aldermen. Stay tuned for more details as they become available and check back for video from both of today's events. *Client of A D French & Associates
Governor Matt Blunt today signed the Distressed Areas Land Assemblage Tax Credit Act into law as part of his larger economic development package.
Other provisions of the new law include expanding the Quality Jobs Tax Credit for businesses that add jobs with above average wages and health benefits, expanding tax credits for filmmakers, and legalizing ticket scalping in Missouri. Click here to download House Bill 1.
With the McKee development, the aldermen are gatekeepers of redevelopment. They don't need to see McKee's plans to articulate a vision for their wards, and ask that the developer act accordingly. They can expedite nuisance complaints. They will be on the front lines of the fight in the Board of Aldermen on McKee's plans. No matter what version of Distressed Areas Land Assemblage Tax Credit Act passes the General Assembly this week, it will require a tax credit applicant to get a redevelopment agreement with a municipal government -- and that has to come from the Board of Aldermen in St. Louis.
Nothing can happen for McKee without the support of these alderwomen. That's mighty power. Furthermore, nothing can happen for these alderwomen without the support of their constituents. That may be the biggest power in play here, if people use it well...
The Missouri Legislature has passed GovernorBlunt’s Economic Development Package, including the Distressed Area Land Assemblage Tax Credit. By a vote of 125 to 19, the House today passed the Senate version of House Bill 1.
Among those voting in favor of the bill were St. Louis State Representatives T.D. El-Amin, Rodney Hubbard, Rachel Storch, Tom Villa and Robin Wright-Jones.
Those voting against included Mike Daus, Jamilah Nasheed and Jeanette Mott Oxford.
Late last night, the Missouri State Senate voted to pass House Bill 1, the economic development bill containing, among other things, the Distressed Areas Land Assemblage Tax Credit and the Quality Jobs Tax Credit.
The vote was 25-7 with one absence.
Among those voting in favor of the bill were Senators Maida Coleman and Rita H. Days. The two announced last week they will be hosting a forum on "land assemblage and the potential impact on the community" on Monday, September 10, from 6:00-7:30 pm at Harris-Stowe State University.
They will be joined by State Representatives Esther Haywood, Juanita Head-Walton, and Robin Wright-Jones; and former State Rep Amber Boykins.
St. Louis City's other two senators, Harry Kennedy and Jeff Smith, also voted in favor of the bill, which now heads back to the House today and a conference committee possibly this afternoon.
Last week, Alderman Charles Quincy Troupe (D-St. Louis) appeared on Lizz Brown's radio show and was quoted in the St. Louis Argus screaming to high heaven about how horrible the proposed Distressed Areas Land Assemblage Tax Credit was for north St. Louis.
He even attacked St. Louis' black delegation to the state legislature for supporting the tax credit earlier this year.
But when he testified in Jefferson City before the special House committee examining the bill, Troupe had nothing but praise for the bill.
"Mr. Chairman, I think the bill is a great bill," said Troupe. "I think it brings a lot of economic development to the area and I support everything in this bill," said the former state representative.
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.
State Rep. Jamilah Nasheed told the committee yesterday that her area didn't want the $95 million Land Assemblage Tax Credit.
"Until we understand it and until we know better what's going to take place in the areas we represent, we don't want it," said Nasheed.
She said developer Paul McKee has been "disrespectful to the local elected officials" and she thinks it is "pathetic" for anyone to support the tax credit without first seeing his plan for the area.
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.
The Missouri House and Senate both came back into session today to revisit the economic development package (HB 327) previously vetoed by Governor Matt Blunt. Of course, included in that package is the controversial Land Assemblage Tax Credit.
There was not much action today. In fact, the House was only in session long enough to first and second read the bill and refer it to committee for a hearing.
That hearing is scheduled for noon tomorrow. Check PubDef.net tomorrow afternoon for video from the hearing.
Poisoning the well of good faith negotiations in trying to reach a compromise on the controversial Land Assemblage Tax Credit is the amount of anger and raw emotion people have towards its chief architect, Paul McKee, and the amount of damage he has done to a community already devastated by decades of neglect.
"Paul McKee creates blight," said 5th Ward Alderman April Ford Griffin last week as she showed legislators and her aldermanic colleagues long-standing brick buildings which now sit with entire walls spilled out onto its once green yard.
She told the other lawmakers about reports from neighbors of mysterious men ramming Bobcats into the sides of buildings, which only months before housed families, causing the walls to fall onto themselves and leaving the building open to the elements, looters and drug dealers.
Some scenes in the video you are about to watch look like they were filmed in the most devastated areas of New Orleans. Mr. McKee and others will point to these images and say this is why he needs this tax credit. What is important for Missouri's state legislators to understand, say city aldermen, is that just 18-24 months ago, many of these buildings were homes with families living in them. Then Blairmont came.
This is where the anger comes from.
But after all the anger surrounding this one man, what St. Louis' Legislative delegation must remember is that this problem is larger than one man, even this man who in the short-term has made the situation worse.
There are 100 million dollars in much needed tax credits on the table. The challenge over the next few days is how to make them available to people who do care about these communities, organizations and developers who are respectful of the people of these areas and sensitive to their desires about the future of their community, and not to reward a man who has for so long, so blatantly disregarded the men, women and children forced to live next to his piles of bricks and self-made blight.
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.
Governor Matt Blunt today officially called a special session of the Missouri General Assembly beginning August 20, 2007.
From the press release:
"I want to thank the leaders of the General Assembly for their great spirit of cooperation that I believe will ultimately lead to the passage of these important priorities for Missouri’s transportation infrastructure and Missouri jobs," Blunt said.
Blunt is asking state lawmakers to fast track the Safe and Sound Bridge Improvement Program to repair or replace more than 800 Missouri bridges and enact an economic development package which includes an expansion of the governor’s successful Quality Jobs Act.
Blunt announced his intention to call the legislature into special session after vetoing House Bill 327 and reaching a consensus to pass a more restrained bill that would expand the Quality Jobs programs.
One of the most controversial parts of HB 327 was a $100 million Land Assemblage Tax Credit which, as far as anyone could tell, only one man, "Blairmont" developer Paul McKee, qualified for.
Meanwhile, Democrats are calling Blunt's special session a gift to special interests and his lobbyist brother.
From the Missouri Democratic Party:
Gov. Matt Blunt today called the Missouri Legislature into a special session to work on $70 million worth of special interest giveaways, including a law allowing ticket scalping that will directly benefit his lobbyist brother, Andy Blunt, whose client Ticketmaster wants to resell tickets on the Internet.
While Blunt’s call for a special session won't include tax relief for average Missouri families, it does include a controversial tax break for a wealthy St. Louis developer to buy private land in St. Louis.
"Matt Blunt has made a mockery of this special session by insisting that the needs of his brother’s lobbying clients get put ahead of the economic interests of our state," said Jack Cardetti, Missouri Democratic Party spokesman. "Instead of wasting taxpayer money on a special session for special interests, Matt Blunt should put Missouri’s working families first for a change."
This will be the second time in three years that Gov. Blunt has had to call legislators into a special session to fix mistakes made just months before by him and the Republican majorities in the House and Senate.
According compiled by the Bureau of Labor Statistics, Missouri’s economy is lagging behind the rest of the country. BLS reports that:
Missouri’s unemployment rate, 4.8%, is above the national average.
From May to June (the latest BLS report) Missouri lost 6,600 jobs, the most of any state except Maryland.
Over the past year, Missouri’s job growth is the 16th worst in the country. (June 2006-June 2007, 0.94%)
Since Gov. Blunt took office, Missouri has the 22nd worst job growth rate. If Missouri’s economy had grown at the country’s mean growth rate under the Blunt administration, 26,750 more Missourians would have jobs today.
According to estimates from 2005, the special session will cost approximately $100,000 per week.
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
