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.â€
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.
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.
State Sen. Jeff Smith (D-St. Louis) today announced that the Board for Inner City Missions of the UCC Metro St. Louis, commonly known as Neighborhood Houses, has been approved to receive $182,925 in state tax credits.
From the press release:
The credits, in conjunction with funds raised in a capital campaign launched by the group, will help make possible the renovation of Dignity House in order to provide added after-school programming and other services to disadvantaged young people in the community.
“Dignity House, along with the two other two community centers under the Neighborhood Houses umbrella, serve as important resources to men, women and children looking to improve their conditions and brighten their futures,†Sen. Smith said. “From housing to health; exercise to education, Neighborhood Houses been here for working families for nearly 100 years and, under its continued dynamic and innovative leadership, will continue to be a positive part of the community landscape for generations to come.â€
The nearly $200,000 in tax credits stem from the Neighborhood Assistance Program administered by Missouri’s Department of Economic Development.
Earlier this week it was announced that the Centene Corporation will move its headquarters from downtown Clayton to two the coming Ballpark Village in downtown St. Louis. But not everyone is happy about the arrangement.
Centene has promised 1,200 new jobs downtown in the next five years. In return, the city and state must fork over $78 million in tax incentives.
One group that has always been opposed to taxpayer funding of the Ballpark Village is the Coalition Against Public Funding for Stadiums. They say the Ballpark Village is part of the stadium and should not be built with taxpayer funds.
Fred Lindecke of the Coalition visited PubDef’s studio to talk about the issue.
The Missouri Department of Economic Development has approved Neighborhood Assistance Program (NAP) tax credits for six Missouri not-for-profit organizations, including three from St. Louis.
Family Support Network has been approved for $228,405 in NAP tax credits to increase the services provided through Project First Step. Offered to at-risk families, Project First Step is a preventative, no-cost service working to avert child maltreatment before it occurs. Family Support Network plans to serve 640 St. Louis city and county families over the next two years, offering individual and family counseling, parenting education and resource referral.
Herbert Hoover Boys and Girls Club has been approved for $150,000 in NAP tax credits. HHBGC will utilize the tax credits to make needed repairs and renovations to its indoor swimming facility, which also houses the club’s learning center and computer lab. HHBGC serves at-risk youth, ages 6 to 18, from neighborhoods in very high need. Herbert Hoover Boys and Girls Club offers over 50 programs in the areas of character and leadership; education and career development; health and life skills; the arts; and sports and fitness.
South Grand Ministry has been approved for $53,950 in NAP tax credits. South Grand Ministry will utilize the tax credits to enhance the quality of life of its clients by providing programs allowing them to live safely in their homes, lead physically active lives and remain socially engaged in their communities. This program will reduce workplace absenteeism for caregivers, preventing an estimated $234,000 in lost wages.
More about the NAP tax credits:
The DED administers the Neighborhood Assistance Program that helps not-for-profit organizations raise private-sector funds by providing partial state tax credits to businesses that make contributions to approved community improvement projects.
Businesses can donate cash, materials, supplies or equipment; technical assistance and professional services; labor; real estate; or stocks and bonds. Credits can equal up to 50 percent of the total amount contributed or up to 70 percent for projects located in most rural areas.
Not-for-profit organizations participating in the NAP program conduct capital campaigns or provide services in the areas of crime prevention, education, job training, physical revitalizations, or community services. The Neighborhood Assistance Program is utilized by not-for-profit organizations throughout Missouri to make their communities a more desirable place to live and work, as well as pave the way for economic development.
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.
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.
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.
