TIFS in St. Louis
I just read an article posted by Alderman Cara Spencer on facebook regarding the City of St. Louis financial position. The article quoted is entitled Team TIF St. Louis.
The gist of the article is that the city’s financial picture is dire and that TIF’s are the cause. As I have said previously, development subsidies are overdone in St. Louis mostly when used for projects that don’t further economic development. The analysis of TIFs is overly simplistic for the following reasons:
1. It is not really a debt. They are deferred funds that will eventually go to the city which are now going to developments.
2. Without the TIF nothing would have happened. It is not as if there would be a lesser project, there would be no project at all.
3. St. Louis is between a rock and a hard place. It is declining economically, riddled with crime and high taxes, and needs incentives to prime the pump. The real question is whether things will ever take off. Written by Paul Dribin