Development Incentives in St. Louis
The City of St. Louis has for years handed out huge development subsidies in the form of TIFs, tax abatement, and other measures. They also offer soft second loans on developments which usually do not need to be paid back. Are these incentives effective? It is difficult to know. The Board of Aldermen Hud Committee is proposing a more rational approach to this issue and is gathering testimony from the public. Everyone involved in development needs to pay close attention.
My take on incentives is that it is difficult to use a formula to provide incentives. Ideally the development getting help would not be built without the incentives and the project would provide a real boost to the city. The Chase Park Plaza Hotel comes to mind. There would be less need for incentives if the city had a more rational, and fair permitting and development process. Most developers tell me the city is the most difficult place to do business.